Encouraged by the prospects of an exceptional table grape harvest, Chile?s fresh fruit industry is expecting another record-setting export season.

Unexpected rains in early November that drenched many cherry and early apricot export plans and set back harvest times for most crops by seven to 10 days, are seen as only temporary setbacks, according to a December 2004 press release from the Chilean Fresh Fruit Association in Sacramento, CA.

Fresh fruit exports last season grew by 11 percent to a record 217 million cases, led by a 28 percent export surge to the European Union. Fruit exports to the United States totaled 92.3 million cases last season, a nearly 20 percent increase over two seasons ago.

The Chilean Exporters Association, known as ASOEX, is expecting more growth during the 2004-05 season and better profits, even after taking into consideration 30 percent losses in cherry and early apricot deals. An important factor in making this calculation, according to the association, is the strength of the new table grape crop.

?It is going to be a good year for table grape volumes," said Bill Lewis, Chile operations manager for Pandol Bros. Inc., based in Delano, CA. More than 40 percent of Chile?s fruit exports are table grapes, supplying almost half the quantity consumed in the Northern Hemisphere during the winter months.

As Rodrigo Duran, export director at David Del Curto in Santiago, one of Chile?s larger growing and exporting firms pointed out, volumes for both cherries and apricots were expected to increase considerably this season because of greater plantings and newly maturing orchards.

?Even though rains hurt the size of both crops, the net effect " after accounting for the losses " is almost negligible in terms of volumes," he explained. Although it is a bit early to project volumes for the apple, pear and kiwifruit crops, Mr. Duran is optimistic that these fruits will be as bountiful in 2004-05 as they were last season.

David Del Curto is in the second year of a five-year investment plan that provides for annual multi-million-dollar investments in packing infrastructure and farm operations, a sign of the optimism that seems to dominate the industry. "Like the rest of the Chilean industry, we are poised for growth because market demand tells us our trading partners want more of our fruit," Mr. Duran said.

The Chilean fruit industry's optimism is justified by last year?s extraordinary results. "If the weather cooperates this spring and summer, we believe the new season will be even more successful," said Ronald Bown, president of ASOEX. "We are working hard to open new markets in India, China and Eastern Europe, and to fine-tune and improve services to our traditional markets in the U.S. and Europe."

Highlights of Chile?s 2003-04 export season included a 22 percent increase in apple exports and increased volumes of lemons, kiwifruit and stone fruit. Table grapes, the mainstay of Chile?s fresh fruit exports, grew a scant 0.8 percent last season because poor weather hindered the early season table grape deal.

Despite the sharp growth in E.U.-bound fruit exports last season, North America will remain the primary market destination for Chilean fruit. North America received about 818,000 tons of fruit last season, followed by Europe with 660,000 tons, Latin America with 377,000 tons, the Far East with 158,000 tons and the Middle East with 83,000 tons.

The only cloud on the horizon for Chile?s 2004-05 fruit exports is the currency exchange rate for the U.S. dollar, which has fallen more than 15 percent in the past six months to fewer than 600 pesos to the dollar. Because Chile?s export-driven economy is booming at a 7 percent rate (led by a strong demand for copper, its principal export), the projected influx of U.S. dollars means that the exchange rate may continue to fall. This, of course, would hurt the fresh fruit industry, where bills are paid in pesos and profits counted in dollars.

(A full report on the Chilean fruit deal appears in the Jan. 17 issue of The Produce News.)