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Reaching for more

Innovation is essential if the cherry industry is to weather mounting market pressures

Time to act for cherry trade

The Covid-19 pandemic wreaked havoc on our lives and although a semblance of normality has returned for many of us, the aftershocks of the pandemic are still being felt. The cherry industry is no exception. The fragile fruit is at the mercy of supply chains that are yet to fully recover, and transport costs remain a burden. The pandemic has only amplified other market pressures around supply and consumption that the cherry trade has been trying to address for some time – challenges compounded by the fact some players are feeling the effects after navigating the past 36 months. However, as the saying goes “necessity is the mother of invention” and we are seeing innovation drive the cherry trade’s next steps. The prolific Chile-China pipeline is experiencing change at both ends, with Chile diversifying to avoid oversupply while an early Lunar New Year is providing impetus to build consumption opportunities outside of gift giving. Brand building will play a vital role in the expanding Asian market, just as it will in all global markets; promoting ‘more than just a cherry’ is a marketing maxim that must be embraced. Technological innovation is also key, with traceability enhancing supply chains and packhouses evolving to give the industry even more control over the fruit it sends to market. There is no doubting the opportunities on offer, and innovation will be key for the cherry industry to seize current and future prospects.

Liam O’Callaghan Editor

“Necessity is the mother of invention” and we are seeing innovation drive the cherry trade’s next steps

Cherries put to the test

Cherry industry prepares for post-Covid environment characterised by numerous challenges.

by Liam O’Callaghan

As a new Southern Hemisphere cherry season gets underway, there is no shortage of challenges as the industry prepares for a ‘return to normal’ after the heights of the pandemic.

The notable exception to this post-pandemic phase is China, a vital market for suppliers, which is still implementing restrictions and lockdowns in response to Covid outbreaks.

BELOW—Chile is the Southern Hemisphere’s largest cherry exporter, with China its core market

This is just one of the many difficulties outlined in Southern Hemisphere Cherries, Growing Exports and Challenges, a report prepared by Rabobank.

“All cherry producers in the Southern Hemisphere will face similar challenges in the form of increasing competition, declining prices, and narrowing margins due to elevated production costs,” says Gonzalo Salinas, senior analyst –fresh produce at Rabobank.

CHILEAN EXPORTS TO RISE

Cherries are Chile’s leading fresh fruit by value, and third by volume, reaching US$2.1bn FOB and 355,000 tonnes in the 2021/22 season.

In the last decade exports of Chilean cherries have grown sevenfold, with 92 per cent of all shipments going to Asia.

“However, for the last three years, Covid-related issues upended the Chilean sweet cherry promotional campaign during the peak sales season in China,” explains Salinas.

“The 2022/23 season will be a challenging one for Chile in terms of production, internal and

@liamfruitnet

external logistics, and market diversification.”

The report highlights the need for the Chilean industry to invest in new sorting lines to accommodate increasing production, while lifting travel restrictions will help the recovery of the labour market.

Market diversification is another priority and the industry is already seeing some success in the US. Chilean exports to the US between January and August 2022 were up 131 per cent compared to the same period in 2021. However, the report notes Chilean exporters will have to walk a tightrope to avoid oversupplying other markets as part of their diversification efforts.

STEADY RISE FOR ARGENTINA

South America's second largest cherry exporter, Argentina, is also in a phase of expansion, shipping 5,433 tonnes in 2021/22.

“Unlike Chile, which exports nine out of ten cherries to China, Argentina’s exports are more evenly distributed among North America (35 per cent), Asia (35 per cent), Europe (21 per cent), and the Middle East (8 per cent),” Salinas says.

“The growth of Argentine sweet cherry exports has been driven by a more efficient and consolidated industry rather than by a major increment in the planted area. Limited growth is expected in the medium-term.”

The report identifies opportunities for growers to replace less profitable apple and pear orchards with cherries, although already high and increasing overhead costs may prevent an explosion of this trend.

AUSTRALIAN WEATHER WORRIES

Australia’s cherry sector is in an expansion phase, with growing consumer demand for the fruit

domestically and in export markets.

More than 450,000 additional cherry trees have reached bearing age since 2018.

However, three consecutive La Niña weather events have taken their toll on production, with continuing wet conditions expected to impact the outlook for the coming harvest, according to the report.

This impact was evident last season, says co-author and RaboResearch associate analyst Pia Piggott, with the industry estimating that Australia’s total cherry production for 2021/22 –17,000 tonnes – was down 15 per cent on the previous year. Total Australian cherry volumes to export markets – which require the highest-quality premium fruit – decreased 20 per cent on the previous year.

“The combination of adverse weather events in Australia, together with transport and logistical challenges during the 2021/22 cherry season, saw decreased exports to key markets – particularly to China, where exports fell 68 per cent year-onyear,” says Piggot.

The industry will be hoping to avoid a repeat of last season and ship quality fruit to Asian markets that are set to open up post-Covid for Lunar New Year celebrations.

“With China a key export market for Southern Hemisphere cherry producers, including Australia, all eyes will be on the Chinese market to see how the country’s continuing zero-Covid policy impacts demand,” says Piggot.

CHINA CHANGE

Predicting the state of the China market has been fraught with danger since the onset of Covid19. Unpredictability seems to be the only constant going into 2023,

with the government still implementing restrictions in response to outbreaks.

One element that will be set in stone is the timing of Lunar New Year, 22 January, the earliest date since many exporters have been supplying the market in earnest. Suppliers have long been leveraging the marketing opportunity of gift giving that traditionally accompanies celebrations. This year, significant volumes of cherries from the Southern Hemisphere will not make it to market before the celebration.

Exporters will be forced to promote new consumption opportunities and encourage consumers to add cherries to their regular fresh produce purchases. Key to this will be connecting with consumers through the right channels, a landscape that is evolving in China, according to the report.

“The pandemic has triggered changes in the way fresh fruit is sold in China, with the share of informal channels falling from 36 per cent in 2019 to 9 per cent in 2021, and supermarkets, fruit shops and e-commerce gaining ground in the same period, according to iQonsulting,” the report says.

“However, this sector is constantly evolving. Some relatively new channels, such as community group buying, which had showed some signs of slowing down, recovered thanks to the lockdowns in major Chinese cities. In general, the digitalisation of the main fruit shop channels in China has helped to improve and implement logistics, which is essential in the case of cherries.”

OPPORTUNITIES FOR COMING SEASONS

Despite the immediate challenges, Salinas is still optimistic about the opportinites available to the industry.

“Sweet cherry consumption is still low in markets other than China, with plenty of room to grow,” says Salinas. “There are opportunities to test market demand in the US, the UK, and Europe to replicate part of the high volumes marketed in the Northern Hemisphere summer season.

”Chile, Argentina, and Australia are all moving in the same direction in terms of diversifying their destination markets, improving the efficiency in their processes, and focusing on high-quality production.

”Also, these countries will continue to try to bring forward production in order to avoid the peak of supply in the Chinese market, with the use of proprietary cultivars.”

Copefrut consolidates Chinese presence with Verfrut joint venture

A three-way alliance with Verfrut and local partner FullBloom International creates one of the biggest suppliers of Chilean cherries in China.

by Maura Maxwell @maurafruitnet

Chilean cherry exporters have their work cut out this season. With volumes up significantly on last year and Lunar New Year falling early (22 January), they face a considerable challenge to place as much fruit in the market as possible before the holiday weekend and ensuing postfestivities sales slowdown.

Fortunately, Mother Nature provided sufficient chill hours this spring for a high-quality crop, while the easing of Covid restrictions at home means plenty of pickers to harvest this season’s bumper crop.

The export campaign got off to a somewhat bumpy start, with an eight-day strike by Chilean truckers preventing at least one Cherry

Express service from sailing with its full scheduled load due to fruit being unable to get to the port of Valparaíso.

On the plus side, the political unrest that had been building in China since the government enforced a fresh wave of lockdowns following record Covid numbers appears to have subsided now that the government has announced it will ease restrictions across several major cities.

Economically, too, it appears that Covid is easing up, with a new report from Nomura showing the negative effects of the pandemic on the Chinese economy have fallen for the first time since October. Felipe Casanova, commercial director

of Copefrut, is under no illusions as to the scale of the task ahead. “Logistically, we still have concerns, but not as many as last season,” he tells Fresh Focus Cherry. “Ports have learnt to function with Covid, and although we’re still seeing lockdowns in Chinese cities, these are not as drastic as before.”

With a well-oiled Chinese distribution network, consisting of two operation centres and coldstorage facilities in Guangzhou and Shanghai providing an integrated import, logistics and delivery service to its customers, Copefrut is better positioned than most Chilean exporters to deal with the fallout of fresh closures.

Nevertheless, Casanova is concerned about how price inflation will impact consumption this season.

“The Chinese market has the capacity to absorb a huge volume of cherries, but consumers are worried about the economy and this may make them more cautious in their purchasing decisions,” he says.

“We think prices will be a bit lower than last season before the Chinese New Year, but not drastically so. A bigger concern is the devaluation of the Chinese currency which will hit grower returns.”

Copefrut itself plans to send a slightly lower proportion of its cherry output to China than last year, redirecting some of this volume to the US, and Latin American and South-East Asian markets.

Casanova has high hopes for the company’s new alliance with Verfrut, under which the two companies will jointly market their fruit offer in China, thereby enhancing product availability and exploiting Copefrut’s expertise in the market.

“Our commercial office in China was created

OPPOSITE TOP—

Felipe Casanova, second left, at the inauguration of Copefrut’s China facility

OPPOSITE & BOTTOM— Copefrut’s cherry volume is projected to reach 45,000 tonnes

RIGHT—Verfrut says the new alliance will bring “an infinity of strengths”

four years ago with the idea of marketing Copefrut fruit, reaching customers more directly, but also with the idea of inviting other leading produce partners such as Verfrut, who would amplify our categories and thus enhance our offering,” he says.

“Undoubtedly, together we are going to consolidate our positions, deliver a much more attractive offering, and we will be more competitive.”

Romano Vercellino, commercial manager at Verfrut, says the alliance will bring “an infinity of strengths”, noting that the companies share “a series of complementarity aspects, but also points of synergy, such as, for example, in cherries.”

Verfrut’s cherry output is projected to grow from 5,000 tonnes to 25,000 tonnes in the short-term, while Copefrut expects its cherry volume to grow from 30,000 tonnes currently to 45,000 tonnes.

“With those 70m kg that we will

have together, we will consolidate our position in Chile and, eventually, this will transform the commercial office into one of the largest importers in China,” says Casanova.

The alliance will be completed by a local partner, FullBloom International. “Fullbloom's knowhow and experience has allowed us to accelerate the consolidation process there and minimise risks in a market as complex as China's, in which communication and cultural understanding are fundamental attributes for the success of projects,” says Casanova, adding that eventually, Copefrut and Verfrut hope the new platform will extend their supply window in China, ideally reaching 52 weeks of the year.

With regard to cherries, Copefrut is also mulling the idea of investing in production in different countries to try to extend its supply window, although Casanova points out that this is still a few years away.

And while the huge increase

in Chilean volume means more pressure during peak weeks, he says producers are working hard to shift the window earlier, by trying new geographical regions or adapting growing techniques to allow them to bring harvesting forward. Work is also underway to develop new early-season varieties, although Casanova readily admits that this is a slow process and there is still no satisfactory replacement for Santina. “We don’t expect our varietal offer to change drastically over the next four to five years,” he says.

For now the focus will be on maximising opportunities in the current scenario. Copefrut hopes to sell half its volume before the Chinese New Year to secure maximum returns – a not insignificant challenge according to Casanova. Despite ongoing marketing campaigns to increase sales in the post-New Year period, he admits that sales channels have failed to keep pace with surging supply.

Chile has also worked hard to develop demand in tier-two and tier-three cities. Copefrut expects to sell as much as 30 per cent of its cherries in these markets this year and is working hard to make inroads in the rest of the country.

“It takes time to cultivate relationships, especially in a country where the mentality and way of doing business is so different. Fortunately, having a sales office in China has really helped us to understand the local culture and develop new sales channels,” says Casanova.

Prize’s point of difference

Prize Global stands out in China with engaging online marketing campaigns that bring consumers on a journey.

by Yuxin Yang harbxin

Since the establishment of its China office, leading Chilean cherry exporter Prize Global has been investing heavily in its marketing in China, the largest and most competitive market for the company.

Along with sophisticated marketing campaigns in China every season, over the past few years, Prize has also created a Chinese brand name (佰兹果), official Chinese social media channels on Wechat and Tiktok, and even a team of IP (intellectual property) characters to serve as its mascots in China.

Live-streaming is an important tool for Prize to engage with Chinese consumers online. With China’s recent crackdown on live-streaming KOLs (key opinion leaders), it became all the more important for Prize to host its own live-streaming events to support sales.

“In the past, it was mostly KOLs who ran live-

streaming sales for brands. Now without them, there is a clear trend that sees brands hosting their own live-streaming events,” says Shawn Liu, Prize Global’s China operating manager.

With increasing volumes of Chilean cherries going into China each year, a point of difference in marketing is essential for Prize to maintain its position.

“Asoex and the Chilean Cherry Committee always have extensive marketing activities at wholesale markets as well as on e-commerce platforms, to support the entire industry,” Liu says.

“So we can focus more on our own content, to highlight the difference of our brand among all the Chilean cherry offerings, and to make a lasting impression on our partners, clients and retail consumers.”

Liu says Prize will also share realtime updates on the shipment of cherries in its live-streaming to give consumers and clients a sense of involvement in the “US$3bn cherry business”.

“We can tell you how many days your cherries have been on the sea or which port they are at. It gives people real and valuable information, and shows them we are a ‘real’ fruit company and a ‘real’ brand,” he says.

In fact, even before exports began this season, Prize’s Shanghai team had been building anticipation for the new season online with regular short video updates, showing people how the season is progressing at its orchards and packhouses in Chile. Some videos featuring elements of Chinese culture are particularly popular online.

“For example we produced videos featuring Chilean children playing in an orchard in Chile wearing Hanfu (traditional HanChinese clothing). They were

very popular online. These videos brought the two cultures together, and created trending topics online,” Liu says, explaining it is a team effort creating this content. “The Prize team has many young talents. We communicate with each other to bring the market trends in China and the resources in Chile together.”

The early arrival of the 2023 Lunar New Year means that a large proportion of Chilean cherries will arrive in China after the holiday season. Prize plans to home in on two key marketing messages to support sales after the festivities.

“Our social media accounts will push content to clients emphasising two points after the holidays,” Liu explains. “One is the advanced freshness technology we have, which enables us to supply fresh Chilean cherries throughout February. The other is the concept of the southern Chile season, which produces cherries that come to China after the new year. ”

TOP LEFT—Prize’s packaging design taps into the festive spirit of Lunar New Year BELOW—Content bringing two cultures together resonates with Chinese consumers

Does bigger mean better?

is, supply is now too big even for China to digest, especially during pandemic restrictions.

So it is time for another change, but unlike 20 years ago, cherries will be affected and now the driving force is survival. It also comes just as the produce industry has seen some of its worst results in decades due to the higher costs of logistics. We’ve seen experts in the produce media calling to diversify the cherry markets away from China, but this won’t happen overnight.

ALBERTO NAVAJAS Independent consultant and former Rucaray CEO @albertoabroad

ith all the attention media pays to technology companies these days, some might have missed Walmart finishing top of Fortune 500 List as the world’s largest company by revenue for the tenth consecutive time in 2022. Size doesn’t necessarily mean value as the retailer left the top ten in market capitalisation long ago, but it is quite impressive to think that the first time Walmart topped the list was exactly two decades ago.

In the early 2000s Walmart’s influence was already felt in supply chains across the globe, and when it decided to start sourcing produce directly from overseas, not everyone was ready for the challenge.

Some shippers thought it was completely unnecessary, as they were used to making a nice profit exporting fruit to traditional wholesalers. In order to supply large supermarkets directly, shippers had to professionalise their teams to get more accurate estimations, smarter logistics, pricing strategies and overall portfolio management. It wasn’t rocket science but it forced a big shift in the produce industry.

WSoon enough, general supplier meetings at Walmart’s headquarters in Bentonville, Arkansas, became standard practice for large fresh fruit shippers in Chile, although cherries weren’t high priority.

Chile had only around 7,000ha of cherries at that time and growers were reluctant to commit when someone refused to pay a real premium for quality and size. However, far away from the US there was a market more than ready to pay that premium – China. In order to keep up with demand for cherries in China, the planted area for Chilean cherries has grown tenfold in two decades. The trouble

Some cherry orchards will face negative results for a second year in a row, and inevitably there will be consolidation. Big players will get bigger, but also small cherry growers will finally realise that in order to stay in the produce business for the long haul, they need to gain economies of scale, joining forces with others to build digital-focused cooperatives. Knowing who to trust in Guangzhou’s Jiangnan market or at Huizhan wholesale market won’t be enough to stay competitive or profitable anymore.

It won’t be easy for Chinese importers either. In order to defend their market share, they can’t continue claiming to be the best wholesaler and promise to match the results of their competition. Instead, they should follow the path of industry leaders bringing something different to the trade table. Empowered middle management, better logistics, daily stock reports, exclusive channels including e-commerce and promotions are the factors differentiating these leaders already, leaving traditional Chinese traders completely behind.

Just like for Walmart, being larger doesn’t necessarily correlate to better performance, but these shifts triggered by market forces will only make this industry stronger, more sophisticated and ready for the next serious challenge ahead: becoming carbon neutral.

RIGHT—Size doesn’t necessarily correlate to performance

The cherry industry is evolving and players at both ends of the supply chain must adapt or be left behind.

New windows for Hansen Orchards

Tasmanian grower-packer-exporter evolves its strategy to handle expanding production and early Lunar New Year.

by Liam O’Callaghan @liamfruitnet

Timing is an important consideration for Hansen Orchards’ cherry operations. The dates of harvests and holidays influence the trajectory of each season.

The upcoming 2022/23 campaign will present some new timings for the Australian company, based in the state of Tasmania.

Managing director Howard Hansen says a second commercial crop from a new 40ha orchard in the Huon Valley will help extend Hansen Orchards’ season.

Meanwhile, the date of Lunar New Year is one of the earliest in recent history, limiting

the opportunity to target the associated surge of gift giving in Asian markets. Hansen says the company is well positioned to extract value from whatever timing it is presented with.

PRODUCTION INCREASE

As of early December, the forthcoming Tasmanian cherry season was tracking well, with conditions looking set to deliver a promising crop, albeit one that is a few days late.

Hansen Orchards is expecting a significant jump in production in 2022/23 thanks to its Jenkins

orchard located in the Huon Valley. Around 24ha of the 40ha orchard will be in production this season, including late-season varieties such as Staccato and Sentennial.

“Our crop forecast is for an increase of about 50 per cent in total volume compared to last year, so it looks like being a record season for us,” says Hansen.

“As the Jenkins property in the Huon Valley comes into production our season is extending a little bit later each year and there will be in excess of 200 tonnes of fruit coming from that property this year. That volume will come after the middle of February and that’s an exciting time as most other Southern Hemisphere suppliers are coming to a close then.”

By extending the season Hansen Orchards can stay in domestic and export markets for longer and capture a premium when supply traditionally begins to dwindle. It also helps to spread the risk of adverse weather.

Hansen says there is plenty of demand for this end of season fruit. “We're really looking to grow our business with all our existing export customers,” he explains. “Around 30 per cent of our volume is domestic and we’re expecting good growth opportunities in that business with our long-term Australian customers.”

EARLY LUNAR NEW YEAR

The tradition of giving fruit as a gift for Lunar New Year in Asia is big business for Hansen Orchards. This year’s celebration falls on 22 January, which Hansen says is probably the earliest he will experience in his cherry marketing career.

“Around 60 per cent of our production will come after the gift giving opportunity so we will be highlighting that cherries are not just a gift,” he explains.

“We've got activity planned with retailers and other customers to try and keep promoting fruit after the Chinese New Year.

“Tasmanian cherries can be enjoyed every day and your family will love them just as much in February as they do for New Year.”

Lunar New Year usually coincides perfectly with the Tasmanian cherry season. The early timing will provide challenges but Hansen hopes the company can use it as an opportunity to develop those new consumption opportunities.

“We’ll be doing more promotional activity than we have in the past. With every customer we're having a discussion around how can we support them because they know what works best in their market.”

OPPOSITE—

Hansen Orchards is working with its partners in Asia to develop new consumption opportunities for its cherries

RIGHT—Rain covers are used to protect the company’s crop

PROTECTING THE CROP

There are opportunities to add value right across a cherry business, be it packhouse upgrades, traceability systems or market development.

Hansen Orchards has invested in all of these, and more, in recent years.

Hansen says the investment that has delivered the most value is rain covers. The company has 100 per cent of its cherry crop protected and is in the process of upgrading some of the very first covers it installed ten years ago with the latest protection.

“We’ve invested significantly in protecting our crop from rain, it’s the biggest risk to cherry production and we want our customers to be able to rely on our quality and supply during Chinese New Year,” explains Hansen.

“More and more we are getting customers that are pre-selling orders in advance of New Year.

“If you are going to be taking orders in advance of the season

you’ve got to be able to give a guarantee that you’ll have the product. Our investment in rain covers over the years has allowed us to do that.”

Wandin Valley Farms cuts packhouse ribbon

Official opening of facility marks the end of five-year journey and sets cherry grower up for exciting future.

by Liam O’Callaghan

@liamfruitnet

to be able to pack 10 tonnes an hour.

In a normal year, Wandin Valley Farms has a relatively even split between domestic and export markets. However, Covid saw this balance shift, with the majority of fruit destined for the domestic market.

While some of the effects of Covid are subsiding and positive changes like the return of backpacker labour will provide a boost, challenges remain in the export space that will see Wandin Valley Farms take a considered approach this season.

The company is optimistic about some of the opportunities to be found in markets like Korea and Vietnam, and markets with new irradiated fruit protocols. The possibility of a similar protocol for Thailand would also be welcome in the near future.

Australian cherry grower

Wandin Valley Farms got its 2022/23 season off to an exciting start with the official opening of its new packhouse.

Located on a greenfield site in Wandin North in Victoria’s Yarra Valley, parts of the facility have been in operation for five years but the Covid-19 pandemic prevented a complete opening.

With the adjoining professional kitchen and shop now up and running, chief executive Alison Jones and sales manager Tim Jones officially opened the facility on 27 October.

The pair spoke of the importance of teams, relationships and partnerships and acknowledged the local community and businesses who have helped set up the new facility.

The packhouse will process over 400ha of cherry production

from Wandin Valley Farms’ orchards located in Colignan near Mildura, Boweya near Wangaratta and Rosegarland near Hobart in Tasmania. These sites will soon be joined by a new 260ha orchard currently being planted in Peechelba near Wangaratta, with first commercial volumes expected in three years.

This spread of production locations gives Wandin Valley Farms a harvest window of 12-14 weeks from late-October through to late-January.

Wandin Valley Farms also packs some third-party fruit and once its new orchard reaches full production the company plans to run two shifts at the facility. By harnessing the power of its GP Graders packing line – equipped with Ellips camera technology photographing every single piece of fruit – Wandin Valley Farms hopes

In the search for value, Wandin Valley Farms is also exploring options to deal with fruit waste, including a range of value-added products made and sold on-site at its new shop.

BELOW—Wandin Valley Farms sells its Australian-grown cherries to customers across export and domestic markets

CherryPlus trial delivers

Pilot programme tracks product movement through cherry supply chains.

by Liam O’Callaghan

@liamfruitnet

AFood Agility CRC collaborative project in Australia has used GS1 data standards to create a digital map of cherry properties and the movement of fruit through supply chains.

The CherryPlus Traceability pilot programme showed how producers, wholesalers, retailers, and consumers could benefit from the adoption of a digital standards-

based traceability system.

The project was a collaboration between Food Agility, the New South Wales Department of Primary Industries, Woolworths, FreshChain Systems, GS1 Australia, Cherry Growers Australia and Cantrill Organics.

Project leader and New South Wales Department of Primary Industries development officer, Jessica Fearnley, says researchers

simulated a product recall in track-and-trace trials.

“The project has shown that GS1 data standards can be used to provide instant product identification and recall, something that’s critical during an emergency situation such as a biosecurity incursion or food safety breach,” Fearnley says. “The system also supports the electronic flow of information to demonstrate compliance with regulatory requirements and this has the potential to improve market access and reduce compliance costs for the industry.”

Unique serialised QR codes with a GS1 Digital Link label were applied to Woolworths-branded punnets of organic cherries. The data was managed via FreshChain’s fully integrated, blockchain-enabled, paddock-to-plate assurance system.

Fearnley says the project shows how important digital traceability is for managing an emergency, giving the industry the ability to identify and isolate problems. The QR codes on the product ensure this information can be conveyed to the consumer, in addition to promoting other forms of engagement.

“Consumers were able to scan our GS1 Digital Link QR codes and leave feedback for the grower and learn a little bit more about the variety, where it was produced and packed, how to store that product and some recipes,” explains Fearnley.

and Freshmax are divisions of VFDirect (N.Z.) Ltd

For supply of fresh New Zealand cherries and access to premium IP varieties, contact us today.

New Zealand plans come to fruition

Southern Fruits International and Tarras Cherry Corp have developed unique brand stories to stand out from the crowd as production ramps up.

by Liam O’Callaghan

The 2022/23 New Zealand cherry season has been a long time coming for Sharon Kirk, co-founder and director of Hortinvest, which manages Southern Fruits International (SFI) and Tarras Cherry Corp.

This season marks the first time both cherry export operations will have commercial production volumes, a milestone that has been many years in the making.

Although Tarras reached this point two seasons ago, the maturing orchards from the larger

BELOW—Southern Fruits International will market its fruit under the Beyond brand

utilising some of the latest packing and grading technology, including New Zealand’s first commercial installation of Tomra Fresh Food’s Cascade Singulator.

SFI will also market the newly launched Beyondbranded cherries produced by Deep Creek Fruits on its mountainside orchards at Mt Pisa and Lindis Peaks, which overlook the glacial Lake Dunstan in Cromwell.

Kirk says customers at Asia Fruit Logistica in November were already enthusiastic about the Beyond brand story, which represents the company’s commitment to innovation and going above and beyond to deliver the best cherries. It also connects consumers to where the cherries are grown – beyond their own borders in the picturesque landscape of New Zealand.

“It’s about creating a story and an experience,” Kirk says. “Lots of people grow cherries and lots of people grow New Zealand cherries, so what makes our cherries stand out? When you talk to customers about the story you can see them thinking about and connecting with the story.”

For Tarras, the brand is Hidden Valley, but the idea is the same. Kirk says the premium packaging, marked with an 'X' like on a map, takes consumers on a journey through New Zealand’s Ardgour Valley to Tarras Cherry Corp’s orchard. Now in its second season, the Hidden Valley brand was well received following its launch. Kirk believes consumers are eager to engage with these narratives when buying their fruit.

“It’s about trying to create this conversation about our cherries, which people share with their families, their neighbours, their bosses,” explains Kirk. “You want to make people think about and look for your product when they are buying it and take them on a journey.” footprint of SFI are expected to deliver a combined output of 400500 tonnes this season. Kirk is excited at the prospect of having such a significant marketable volume, giving the operations the ability to secure programmes with international retailers and meet demand from customers who have been eagerly waiting for more cherries.

SFI will be bolstered by the construction of a brand-new, stateof-the-art packhouse set to be completed in December 2022. The facility will service both operations,

LEFT—(l-r) Christie, Sharon and Liam Kirk at Asia Fruit Logistica

@liamfruitnet

Unitec guides the cherry business

With Cherry Vision 3.0 and UNIQ Cherry, each quality class has its reference market.

BELOW LEFT—Cherry Vision 3.0 detects external quality parameters in cherries

BOTTOM LEFT—Unitec's patented solutions enable the supply of cherries with consistent taste and quality

has significantly contributed to the development of exports – especially to distant markets such as China – with its patented technologies helping to select fruit with characteristics suitable to bear the long sea journey between the two countries.

Over the years, exports have increased hand in hand with the number of Unitec lines installed, making Chile the world’s top exporter of cherries.

Thanks to the selection carried out at the origin with Unitec solutions, every year the transport of about 100,000 tonnes of cherries not suitable for overseas transport is avoided, with a saving of about 45,000 tonnes of CO2, equal to the annual emissions of over 20,000 mid-sized cars.

For almost 100 years, Unitec has been selecting more than 50 types of fruits to enhance the value of every single one of them, giving each fruit its opportunity on the market, whether it is for fresh consumption or for the processing industry. Its patented solutions for internal and external quality

selection of fruits and vegetables prevent fruit that is unsuitable for transport or unsatisfactory to the taste of buyers to be placed on the market, with a consequent reduction in waste and pollution, as well as economic and environmental benefits

A striking case study is the Chilean cherry market: Unitec

With the skills and experience gained, Unitec offers its customers sorting systems entirely manufactured in-house and 100 per cent made in Italy that can select external and internal quality of fruit so that it is not only beautiful to look at, but above all, good to eat.

As we all know, cherries are “moreish” and when a cherry is good you can't help but eat more, just like sweets. Consistent taste and quality are possible thanks to the Cherry Vision 3.0 patented solutions, capable of detecting external quality parameters, the presence or absence of the stem, as well as size and colour, and thanks to UNIQ Cherry, to detect internal quality parameters, such as the degree of softness and Brix.

The high reliability in the quality selection process of Unitec systems allows for waste reduction along the entire supply chain, because the product not suitable for fresh consumption is not wasted but destined for processing. Logistics costs are also reduced thanks to the separation at the origin of suitable products from those not suitable for consumption as a fresh product.

These numbers translate into tangible benefits both for the entire fruit and vegetable supply chain and for the final consumer, in addition to waste and pollution reduction for a more sustainable world.

Strong growth for South Africa

From a very small base, South Africa’s cherry exports are expected to grow steadily.

by Fred Meintjes

South African cherry producers see an exciting future for their industry.

Cherry production is still very limited in the African nation. However, the establishment of orchards in the Ceres region is changing the scenario. Since 2016, the hectares planted under cherries have more than doubled in South Africa.

Calla du Toit, a well-known

Ceres fruit grower who manages TruCape Marketing’s procurement of cherries, says the fruit fits in well with production schedules in the region. This means that growers are keen to enter the industry with both high-chill and low-chill varieties.

“With harvest between midOctober and mid-November the South African cherry season is a short one but, because of its

proximity to the high-value Christmas season, there is great demand,” says Du Toit.

“We are positive about this year’s harvest. There is very good demand locally.”

Traditionally, the Eastern Free State has been South Africa’s main cherry growing region. It has now been surpassed by Ceres, where around 60 per cent of the national crop is harvested.

Major players in the South African cherry business include TruCape, Dutoit Agri Group and the Karsten Group.

“We believe there is room for growth in the South African cherry industry,” says Alwyn van Jaarsveld, commercial cherry manager of well-known plant breeder IFG.

“This is perhaps particularly true for Europe where there is a gap in the market between September and October. This would be perfect for South Africa.”

Arno Marais, estate manager at Dutoit Agri and chairman of CherriesZA, says there is an opportunity to produce early-season cherries.

Marais says markets available to South African producers are being oversupplied in the late season.

“This is due to aggressive plantings in Chile and more plantings in China. South Africa will also see strong growth in production over the next three years.”

Around 52 per cent of the South African crop is sold in the domestic market.

The UK is the South African industry’s major international market, receiving 76 per cent of exports. Good markets are also being developed in Europe and the Middle East.

ABOVE & BELOW—South Africa’s short harvest window times well for the Christmas season

Empower growers and consumers with Awwws solution

Awwws Edible NFT Ecosystem is a comprehensive solution for growers, wholesalers, retailers and consumers which combines the power of track-and-trace and source verification to authenticate produce throughout the entire supply chain.

The Awwws blockchain solution guarantees a premier experience for all users. The platform ensures data integrity and dependable transactions, resulting in the utmost consumer confidence. Growers benefit from access to consumer purchase patterns and retail business profiles through big data collection and analysis.

The Awwws solution comprises (1) Freeze the Dynamics (FTD), which supports growers and wholesalers, and two apps (2) Awwws.biz and (3) Awwws, which support retailers and consumers respectively. This three-pronged

technology can easily be adapted for use in various global regions.

Awwws World Limited deploys innovative digital technologies which form the backbone and framework of the powerful Awwws Edible NFT Ecosystem. The comprehensive digital solutions range from creating reliable and trustworthy platforms for growers, food producers and retailers to openness and credibility markets for consumers. Awwws provides traceability and authenticity for the supply chain, and the blockchain implements data integrity to uplift the premium quality food trade into a brand new digital era.

HANSEN ORCHARDS CASE STUDY

Hansen Orchards is the first client of Awwws Edible NFT Ecosystem worldwide. It adopted the Awwws solution for its cherries, which are

distributed to 189 cities in 29 countries.

A Freeze the Dynamic (FTD) blockchain label is securely attached to each Hansen 43° South Cherries box and through the Awwws app, consumers can then scan the label to confirm the authenticity and verify the source of the cherries they are buying.

Empowered with the Awwws solution, growers can track and trace their produce allocation and stock movement along the supply chain. More importantly, they can also benefit from counterfeit detection and brand protection. With the traceability and authenticity data provided by Awwws World Limited (formerly known as Good Talent Creation Ltd) as evidence, Customs and Excise Department of The Government of the Hong Kong Special Administrative Region conducted an operation against the sale of counterfeit-branded fruits and seized 196 boxes of counterfeit-branded cherries weighing about 400kg in total.

Join us

Fruit Directory on the Awwws App

Promote your high-quality fruit globally awwws.world | info@awwws.world

LEFT—Hansen Orchards adopted the Awwws solution ABOVE—The Awwws Edible NFT Ecosystem has a threepronged technology

Xingyeyuan improves efficiency

Ongoing efforts to modernise cherry production have strengthened Xingyeyuan’s competitiveness in the domestic market.

by Yuxin Yang harbxin

The trend of modernisation continues in China’s domestic cherry industry. Faced with growing competitive market pressures, leading producers and marketers have been focusing on improving production efficiency and quality. Dalianheadquartered Xingyeyuan Group is one such example.

“Xingyeyuan attaches great importance to production. Over the past two years, we invested and set up modern smart greenhouses, equipped with advanced technologies such as environment and IoT (Internet of Things) monitoring devices,” says

Michael Sun, general manager of Xingyeyuan’s production base business. “Scientific production management has greatly improved our efficiency.”

With Chinese consumers’ evolving tastes driving varietal renewal, Xingyeyuan has also worked with seedling research companies in Japan and brought in saplings of premium varieties to diversify its offerings, such as Japan’s Taisho Nishiki and Sato Nishiki varieties.

Together with western varieties (Santina, Tieton, and Russia No.8), Xingyeyuan expects to produce approximately 60 tonnes in the

LEFT—Xingyeyuan brought in Japanese varieties that have proved to be popular in China

BOTTOM—Modernising production is a priority for Xingyeyuan

coming season, across Shandong and Liaoning provinces.

“Due to the high temperatures and dry weather, we expect the volume from Shandong will be reduced,” Sun says. “It will likely push up prices in April and May, until Liaoning cherries become available.”

He also adds that while China’s zero-Covid policies and lockdowns are unlikely to have a major impact on China’s cherry production, they will present challenges to logistics and sales.

Another challenge is the early arrival of Lunar New Year in 2023, as Chile will have more volume to supply China after the festive holiday, putting pressure on early season Chinese cherries.

“The main sales window for imported cherries is January and February. In late February, Chinese cherries will join in the competition,” Sun says. “Because of the good reputation imported cherries have in the China market in regard to their brands and quality, and coupled with strong marketing support, they will have an impact on the sales and pricing of Chinese cherries.”

To counter that, Xingyeyuan plans to increase its promotional efforts in the new season to stimulate market demand, and to further develop its group buy and online pre-order services to complement its core distribution to supermarkets and wholesale markets.

Building China’s cherry variety club

Chinese cherry nursery Woguo values variety rights and understands their importance to the company’s development.

by Winnie Wang FruitnetWinnie

The hunger for fresh cherries remains strong in China, prompting high demand for cherry nursery stocks from growers.

Seeing this trend, Shaanxi Woguo was established in 2020 as a joint venture by Shaanxi Zhongzhi Hengrun (a subsidiary of Joy Win Mau), Dutch company Fleuren, Pagoda and Yunnan Xinte Fruit.

As a cherry specialist, Woguo focuses on the whole industry value chain, and on obtaining formal authorisation to introduce and market new and superior varieties in China.

“Our goal is to build a cherry planting and marketing alliance and a patent variety club,” says the company.

According to Jessie Cheng, vice-general manager of Woguo, the company’s property currently covers 66ha, including 33ha of orchards and 33ha of nurseries.

“By the end of this year, our first batch of large seedling trees will be out of the nursery,” Cheng tells Fresh Focus Cherry

“In the next few years, we plan to maintain our output at about 400,000 trees, which means we can support the planting of about

266ha of new orchards every year. Once new cherry orchards are completed in the spring of 2023, the total planting area of Woguo's first group of franchised growers will exceed 100ha,” she adds.

Woguo is officially authorised by Gisela, the German cherry dwarf rootstock series, and it is also applying for the breeding rights to another German cherry dwarf rootstock series Weigi.

Cheng indicates that obtaining the variety rights in a proper manner is significant to the company's development.

“We value variety rights and the work that the variety owners have done,” she explains.

Woguo is currently the only company in China that has been granted the breeding rights to the variety Tamara. In total, the company currently has more than 20 varieties through official agreements and they are under field trial.

One of them is a new variety called Areko (selected from a hybrid of Kordia and Regina) that has performed very well in Europe and the Americas, and it is expected to bear fruit in Woguo’s orchard next year.

“In June next year, we plan to organise the open field weeks for Tamara and Areko together with the authorised agent of the variety, SVM, and invite customers who have intentions to visit,” Cheng adds.

“This will be an important step in the development of our new breeding club.”

LEFT—Woguo has secured the rights to a number of high-quality cherry varieties

Cold curtails US campaigns

The California and Pacific Northwest cherry industries are holding out for kinder treatment from the elements this year after their production was slashed by inclement weather in 2022.

by Jeff Long

Growing sweet cherries has always been a risky proposition. This mainly has to do with the timing of the cherry season: the miniature but tasty stonefruit is the first to come into bloom each year, making it vulnerable to sudden, adverse turns in the weather. An ill-timed rain, hailstorm or late freeze can devastate an entire crop in a matter of hours. Such was the case for the California and Pacific Northwest cherry seasons in 2022 as both regions were pummelled by the elements during the weeks leading up to the harvest. The result was a California crop roughly half of the previous season’s volume while the Northwest’s production was the smallest in 15 years. The consequence of this season-long cherry shortfall was that FOB prices remained at record levels from late April through early September. When adding in high-cost air transport and a historically strong US dollar, relatively few US-grown cherries found their way to international destinations last season. Exports have been in general decline the last few years

LEFT—California production came in at just 5.4m cartons in 2022

PHOTO—California Cherries

from both California and the Pacific Northwest as increasingly volatile weather has impeded cherry production while geopolitics and, more recently, the global pandemic, have effectively shut off access to key Asia-Pacific markets for weeks at a time. The cumulative impact of these multiple trade barriers, both natural and political, has the Northwest industry particularly worried.

“There’s definitely concern that long-term damage is being done to our international markets from these persistently short (cherry) crops and the general disruption to trade over the last several years,” remarks an export manager for a major Northwest fruit marketer midway through the 2022 season.

According to industry data,

Northwest cherry growers exported an average of 4.87m cartons (9.1 kg) between 2020 and 2022 compared to 8.53m cartons during the three prior seasons. In 2022, just 23 per cent of the Northwest crop was exported after averaging more than 32 per cent between the 2019 and 2021 seasons.

Here is a recap of the 2022 US cherry deals plus a look at what may be in store for the future.

HARD FREEZE HALVES CALIFORNIA CROP

California managed to produce just 5.4m cartons (8.2 kg) during 2022 following on the heels of a record 10.1m-carton crop the year before. This past season’s numbers were identical to those of 2018 and 2020 when production also averaged 5.4m cartons. While the 2021 California cherry crop may appear to be an aberration, the industry has the ability to pack such quantities in any given season due to its bearing acreage – providing that the weather cooperates. The culprit behind this year’s disappointing yields was a late February hard freeze that struck California’s central valley just as orchards had gone into bloom. The Bing variety »

“There’s definitely concern that longterm damage is being done to our international markets”

was evidently most impacted with reports that some orchards in the Stockton-Lodi vicinity were virtually devoid of fruit due to blossom loss. According to the California Cherry Board, 2022 Bing production totalled 1.2m cartons compared to nearly 1.8m cartons for Coral Champagne, which has become increasingly popular with the growing community reportedly due to superior weather-resistant characteristics. In fact, ‘Corals’ have been the state’s leading variety in volume four out of the last five seasons.

“California has been no fun at all this season, especially for exports,” said Dave Martin of Stemilt Growers during the mid-point of the 2022 deal. “Bings got hammered with rain, hail and general cold weather this year. As a result, prices have been high, volume tight, airfreight expensive while (exchange rates) are poor.” Several weeks later, however, Martin noted that “if there’s a bright side to the California season, we ended up with the highest price-per-carton average ever.”

COLD HITS NORTHWEST POLLINATION

Coming into the 2022 season, cherry growers across the five-state producing region (Washington, Oregon, Idaho, Utah and Montana) probably thought their weather could only improve from the year before when record summer heat damaged a significant percentage of their fruit. No such luck, as Mother Nature did an about-face and delivered one of the coldest springs and summers in history, providing poor pollinating conditions and sparse fruit set that

BELOW— Northwest growers were hit by one of the coldest springsummers in history

OPPOSITE— Export demand for Northwest cherries remains strong

PHOTO— Northwest Cherry Growers

eventually resulted in a 13.3m-carton crop. Just five years earlier, Northwest cherry production exceeded 26.4m cartons.

“The Northwest crop was negatively affected by six inches of snow during bloom that fell over the Northwest on 14 April 2022,” notes BJ Thurlby, president of the Northwest Cherry Growers (NWCG). “At the time, over 60 per cent of the region’s trees were in bloom. We found that the flowers on the trees died during the snow which left us with the smallest crop since 2008.”

The Northwest cherry industry is likely due for some better luck with the elements in coming seasons. When that occurs, look for heavy volumes of fruit to descend on the marketplace once again.

“Our industry has packed and successfully shipped just over 26m boxes in 2017,” says Thurlby. “We think that the potential for a large crop in the range of 25m boxes exists each and every year.”

With such a short crop, it is no surprise cherry exports to Asia-Pacific markets were at a minimum last season. Nevertheless, the Northwest industry was gratified to see strong interest from importing

customers for their fruit.

“Demand for Northwest cherries did not slow,” advises Keith Hu, international operations director for the NWCG. “Because of production issues, the industry couldn’t meet consumer demand

from the Asia-Pacific markets. But I believe demand for Northwest cherries in 2023 will continue to be strong (helped by the fact that) air cargo space from the US has increased dramatically compared to the 2020 and 2021 seasons.”

IFG stays ahead of cherry curve

Alwyn van Jaarsveld, IFG’s international cherry commercial manager, discusses the leading fruit breeder’s expanding varietal portfolio.

by Jeff Long

Can you begin by telling us what’s new with IFG in cherries?

Alwyn van Jaarsveld: In 2023, consumers and retailers can expect to see even more IFG cherries in the US and other countries. As the plantings start to mature, more IFG cherries can bloom earlier in the season, getting a head start in retail.

We have a very special flavour up our sleeve, but we are not letting the cat out of the bag yet. What we can say is this newest release is temporarily called ‘IFG Cher-ten’ –the actual trademark name will be announced early in 2023.

Can you tell us about some of the characteristics of this new offering?

AvJ: IFG Cher-ten used to only blossom under low-mid conditions (more than 300 chilling hours) in such places as Southern California. However, it wasn’t until our recent Chile cherry season that we could ascertain the outstanding performance and adaptability

IFG Cher-ten has to low-chill environments. IFG Cher-ten has the potential to yield a good crop during winters when the chill accumulation is less than 300 chilling hours.

IFG Cher-ten is a big heartshaped fruit with very long stems that can stay fresh even after

40 days of storage. It has good firmness and a nice flavour profile.

On this note, how is your low-chill breeding programme developing?

AvJ: IFG’s low-chill cherry breeding programme continues to blossom, allowing cherries to be grown in regions that, to date, were less suitable for cultivation. In the past few years, strange weather phenomena globally have resulted in many fruit-growing areas experiencing hotter-than-average temperatures. IFG’s low-chill cherries are better adapted to such conditions.

Growing cherries in more regions around the world than ever – and earlier – allows for a more consistent supply for retail. It also helps us open the cherry season with fantastic flavour and a great eating experience, enticing customers and growers alike.

All of IFG’s Cheery Cherry varieties, regardless of the chilling requirement, are harvested early in the season. Therefore, our cherries provide a make-or-break experience that will entice the public to buy again.

Looking ahead, what’s in IFG’s cherry pipeline?

AvJ: IFG not only uses modern technologies to ensure that the genetic material used can produce

outstanding fruit, we also grow the trees in a very harsh environment. This allows us to weed out the weaker progeny and ensure robust, hardy varieties that are grower-friendly and can withstand the rigour of warm, dry summers, while still producing a good crop.

All our varieties are non-GMO and are tested to maintain quality over weeks of storage.

While IFG currently offers ten cherry varieties, we are planning more releases that will join the ranks over the next few years. There are some great varieties that are starting to bear fruit, and we believe all our customers and retail partners will be pleasantly surprised in 2023 and beyond.

ABOVE—IFG’s international cherry commercial manager Alwyn van Jaarsveld

Innovation meets tradition at AC Valle del Jerte

Centuries-old cultivation techniques and cutting-edge technology merge seamlessly at the Spanish cooperative to deliver premium cherries to European consumers.

by Maura Maxwell @maurafruitnet

Growing competition is forcing Spain’s cherry producers to raise their game. Through investments in new technologies and extensive marketing campaigns, their goal is to position themselves as premium suppliers and differentiate their offer in what has become an increasingly crowded market.

Located in Extremadura’s Jerte Valley in eastern Spain is the Valle del Jerte Cooperative Group (ACVJ), made up of 15 local cooperatives and more than 3,000 grower members. With an annual output of around 20,000 tonnes, it is Europe’s biggest cherry marketer, accounting for around onefifth of Spain’s total output. The

area is also home of the famous stalkless Picota cherry, an exclusive variety grown and harvested using traditional methods, whose arrival on retail shelves in June is a welcome event every year.

Like the rest of the trade, ACVJ felt the full impact of cost inflation and scarcity of raw materials during its 2022 campaign. Having come out of the Covid pandemic with high expectations, it managed to navigate the challenging scenario relatively smoothly, overcoming the main obstacles to achieve a satisfactory export campaign.

Cherry acreage in the Jerte Valley has remained broadly stable in recent years, however, through

a combination of varietal renewal and technological investments, growers have strived to add value to their crop and maintain a premium offering for the European market.

At ACVJ this involves an ongoing process of digitisation and automation at its main facility. This past year has seen the installation of new automatic fillers in its optical calibration lines, enabling the company to pack more precisely and with fewer people. It has also built a new water treatment plant to cut water use – a key strand of its sustainability strategy to make better use of resources.

“Plus, we’re working on a project to expand our facilities, adding another new optical calibrator and a new warehouse,” says managing director Monica Tierno.

The company has also ramped up promotional efforts during the past year, with a particular focus on the UK – one of the biggest markets for Picota cherries outside Spain. “We carried out an extensive marketing campaign, especially in the UK, to overcome the Brexit problem, while in Europe our promotional efforts are centred on differentiating the unique and exclusive nature of our cherries,” says Tierno.

Meanwhile, Spain’s hopes of securing access to China’s lucrative cherry market appear to have stalled, prompting the Valle del Jerte Cooperative Group to rethink its strategy in Asia.

Speaking to Fresh Focus Cherry at November’s Asia

TOP—The Jerte Valley is one of Spain’s biggest cherry producing regions

LEFT—ACVJ has more than 3,000 grower members

Fruit Logistica, commercial director Ana Esther Luengo explained: “We’re now looking to introduce our dried figs to South-East Asian markets like Malaysia, Thailand and Singapore. They are easier to transport as they have a much longer shelf-life. The idea is to build up the right commercial contacts there then expand our offer into fresh.”

UK chases openings

Managing director of Norton Folgate and chairman of Love Fresh Cherries, Matt Hancock, reflects on the key opportunities and challenges associated with sending British cherries to Asia.

by Fred Searle @fredfruitnet

RIGHT—Matt Hancock says Asian exports allow UK suppliers to return attractive prices for bigger fruit

OPPOSITE—Norton Folgate has used the Union Jack colours on some of its export packaging

What export arrangements does Norton Folgate currently have in Asia?

Matt Hancock: We currently only export into the Asian ‘free ports’ of Hong Kong, Singapore and Malaysia. Volumes are relatively small (50-100 tonnes per season) and retailers are confidential.

What are the main challenges you come up against in exporting to Asia?

MH: The main challenges are around fruit firmness and colour. Asian buyers are used to very hard fruit – from Chile, Australia and the west coast of America –which is picked lighter and treated with gibberellic acid (a naturally occuring hormone that increases fruit firmness). This fruit is all grown outdoors as well.

UK fruit is predominantly grown under covers and picked darker, making it softer. While the British fruit eats extremely well, Asian buyers are wary because the cold chain infrastructure is variable, and softer dark fruit is prone to breaking down more quickly.

A lack of direct access to

mainland China is also a significant challenge and one that would change things dramatically for the UK industry. Sadly, I think it will be many years before we see this even considered for application, despite some lobbying in the past few years.

What plans does Norton Folgate have to develop exports to Asia in future?

MH: The reality is we compete with Washington and Canadian cherries

in this market, which are arriving by sea, whereas we are shipping by air currently. The business is niche with high-end customers who want large size, high-quality, great-eating fruit. It is a similar situation to New Zealand cherries going into Asia and competing with Chilean fruit.

In what ways does Asia offer more potential for British cherry growers than the UK market?

MH: It is not a question of more potential – the two go hand-in-

hand. The key is maximising sales for the whole crop, from Class 2 fruit all the way through to premium 34-36mm fruit. The UK market will consume 24-28mm fruit and broadly return reasonable prices for those sizes, however the UK market struggles to return attractive prices for the bigger fruit. This is where the export markets add their value.

Is there a general trend to export more UK cherries globally?

MH: I believe exports will continue to develop, particularly while we have a favourable currency position. If the sterling strengthens considerably, this may change. However, for sales in August there is considerable demand.

What is the appeal of the British brand and how is Norton Folgate capitalising on this?

MH: ‘Team GB’ has a strong appeal in a wide range of markets and resonates favourably with clients. We have incorporated the Union Jack colours in our packaging. This is not true of all export markets, but in many cases the reaction is very positive.

Cherries on the rise in India

Sumit Saran, director of fresh produce consultancy SS Associates, discusses India’s burgeoning demand for imported cherries.

by John Hey @johnfruitnet

India is displaying an increasing appetite for cherries. How is the market growing and what is driving this demand?

Sumit Saran: India is a growing market for cherries. Discerning consumers are getting a taste for high-quality fruit varieties and year-round availability from different origins.

India’s cherry imports have been pretty limited, but they appear to be picking up as key exporting countries such as the US and Chile increase their focus on India. What

have US and Chilean exporters been doing to develop the market?

SS: Even though the import volumes are small, they’re building rapidly from a low base (see chart below).

In 2021/22, imports touched 826 tonnes and it can be safely envisaged that the 1,000-tonne barrier will be broken soon.

Chile has several distinct advantages in the market. Its cherry production is counter-seasonal to India’s. Chilean cherries are available during the peak consumption period of Christmas and New Year,

Indian cherry imports (tonnes)

which is also a time when the ambient temperatures are not very high in most parts of the country because of the winter season. Most importantly there is no customs duty on Chilean cherry imports due to a preferential trade agreement between India and Chile.

The Chilean cherry industry has undertaken two years of trade and consumer outreach in the Indian markets with very good success.

US Northwest cherry supplies were hampered due to a phytosanitary issue that made it mandatory for their fruit to be fumigated before being shipped to India. Fumigated cherries had major shelf-life concerns especially for secondary transit. This issue has now been resolved and India has allowed imports of Northwest cherries without fumigation under a systems approach. 2023 will be the first year of shipping with the new protocol and we are planning to launch a very large-scale trade and consumer outreach campaign. Discerning Indian consumers will surely

Source: DGCIS, India Ministry of Commerce *12-month period – April-March

be able to taste the quality that Northwest cherries bring.

Airfreight costs make imported cherries an expensive item for many Indian consumers. Does this restrict the reach of cherries to the premium end market? And how big is this market?

SS: Without a doubt, high freight costs are the main inhibiting factor. The basic customs duty of 30 per cent (for all origins except Chile) further increases the costs.

A report published by management consultancy Bain & Company in collaboration with the World Economic Forum projects that 7 per cent of Indian households will be in the super premium category and 44 per cent in the upper middle class category by 2030 (see chart above right). It is envisaged that both these categories will make up the consumer base.

So in the short term, India is a market of 50-75m consumers and in the long term, India is certainly going to be a market of 150m-plus consumers who will be able to afford a high-value perishable product like imported cherries.

Selected Chilean suppliers and Indian importers have brought in containers of cherries by sea. Do you see this as a breakthrough in growing the market by expanding the affordability of cherries?

SS: We’ve seen some product arrive by sea and this will certainly be a breakthrough in making the product more affordable. However, there is very little room for compromise on quality and shelf-life. If cherries are to be sea shipped on a regular basis, shippers will need to ensure that product reaches India in optimum quality.

How would you describe consumer and market preferences for cherries in India?

Evolution of the household-income profile in India

OPPOSITE—Sumit Saran, director of SS Associates

LEFT—Increasing affluence levels are set to drive India’s demand for imported cherries

Source: www.consultancy.in; Bain & Company, World Economic Forum

SS: India is a very new market for imported cherries so many things are in the process of being defined. However, one point is very clear – small boxes that do not need repacking in India will be best suited to the market. For sure, a 2.5kg carton will work better than a 5kg carton. If pack sizes can be further reduced, the traction will be even higher.

India is also growing cherries. What is the state of the domestic industry and how is it developing?

SS: India produced 10,936 tonnes of cherries in 2019 and was the world’s 26th biggest producer. Almost all of India’s cherry production is centred around four districts of the Kashmir Valley. Indian cherries have a very short harvest cycle and suffer with an absence of perishable storage and refrigerated transport infrastructure. Fruit is primarily harvested and sold in the warmer months of May to July.

Indian government agencies are trying hard to push Indian cherries, both in local markets and in export destinations. It will be interesting to see if the promotion momentum is maintained. Several challenges remain and it’s clear domestic cherries will not be able to meet the burgeoning demand.

The “last mile” must be very challenging for a temperature-sensitive product like cherries in India given the lack of cold chain retail infrastructure. How are suppliers and marketers dealing with this?

SS: Yes, it’s a big challenge. With many service providers now entering the market to address the last mile issues, we are hopeful that more consumers can be reached. Many of these e-commerce and q-commerce operators (which promise deliveries in 30 minutes or less) are now delivering temperaturesensitive products like ice-creams. The same supply chains can be tapped into for delivery of high-value perishables like cherries. Many Indian importers are also setting up state-of-the-art distribution centres and they will also be able to provide better outreach.

How do you see the market for cherries growing in India over the next five years?

SS: I can safely see the market growing at a rate of over 30 per cent year-on-year for the next five years. As affluence increases and supply chains improve, the market is destined for rapid growth. Suppliers will need to continue with market outreach campaigns to make more discerning consumers aware of product availability, its taste and health benefits. Geographical expansion will also be key to growth. Reaching out to discerning consumers across the tier-one and -two cities in India will result in exponential volume growth.

SS Associates is the marketing agency and representative for Chilean Cherry Committee and US Northwest Cherry Growers in India. The views expressed in this interview are the personal views of Sumit Saran.

Alanar coping with changing climate

In 2022, the climate caused different cherry production regions in Turkey to overlap and shortened the campaign, but Alanar believes the good reputation of its brand and concerted effort on sustainability will ensure success.

by Tom Joyce @tomfruitnet

Unusual weather conditions hampered the Turkish cherry campaign in 2022, shortening the season compared with previous years and causing production in different regions to overlap.

“In general, it was not a good cherry season,” says Yigit Gökyigit, sales and marketing coordinator at exporter Alanar. “Turkey is a big country, with cherry production in various regions, which helps to extend the season. Normally, the first cherry crop starts on the western coast of the country, moving east as the season progresses. However, this year saw different regions overlapping, so it was not possible to harvest region by region.”

Alanar also experienced rain in certain regions

prior to harvesting, another sign that climate change is a growing issue in the country. Such issues are minimised by having the most advanced sorting machines available. “Our Cherry Vision 3 was produced by Unitec in Italy,” says Gökyigit. “This machine sorts cherries perfectly, based on defects and colouration. We are also planning new investments in alternative packaging options.”

Germany has long been Alanar’s main market, and the company’s cherries are well known across Europe, as well as in more distant markets like Canada and India. “Alanar's cherries are also very well appreciated in Asia-Pacific,” says Gökyigit. “There is big demand for Alanar's cherries in China, even if Turkey has been unable to export cherries to China for the past two years, as the protocol has not been activated.”

Rising costs are of course a major challenge, as they are for companies across the world, with airfreight costs affecting prices dramatically. “Alanar is a grower, packer and exporter, so we are experiencing increasing costs at various stages of the process,” says Gökyigit. “Airfreight costs are affecting the prices of our fruit dramatically comparing with previous years. On the other hand, Alanar is a recognised brand known for its high quality and top service all around the world. Therefore, we are still receiving good demand from markets we send to by air, even though it is very challenging at the moment.”

However, such challenges will not change the company’s overarching strategy, with sustainability remaining at the forefront. “Rising costs do not make it more difficult to invest in sustainability,” says Gökyigit. “Sustainability has always been very important for Alanar and our parent company Tekfen Holding, and we are continuing to progress with projects related to waste management and social responsibility.”

LEFT—Yigit Gökyigit says sustainability is at the heart of Alanar’s cherry strategy

Perla Fruit reiterates commitments

Rising costs and climate change present a formidable challenge to Turkey’s cherry specialists, but Perla’s commitment to quality, food safety and sustainability remains “non-negotiable”, says chairman Kerim Taner.

by Tom Joyce @tomfruitnet

How was the past cherry season in Turkey in terms of volumes and quality?

Kerim Taner: The 2022 cherry season was disappointing due to major crop losses in many regions, with the climate impacting on the remaining yield.

Is the climate becoming a growing issue, in terms of timings of seasons for example?

KT: The climate is becoming an important factor related to fruit set and harvest quality. Turkey has a big advantage growing cherries in many different regions that

complement each other. However, in some years, the difference is hard to realise.

Have you made any recent investments, such as in sorting machinery?

KT: Perla Fruit has already invested in two state-of-the-art cherry lines with a seasonal packing capacity of 8,000 tonnes. We are fully equipped for packing the best quality cherries when the crop is available.

Which markets offer the most encouragement at the moment?

KT: Turkey’s largest market

is Germany, and it is also Perla Fruit’s. Our Perla Lab operation creates a major point of difference, delivering a unique hands-on food safety protocol to our German clients. There is also potential for Turkish cherries in Asia, and Perla Fruit is working hard to grow in this market.

How are rising costs impacting you?

KT: High inflation worldwide is affecting our cost structure, including labour, personnel, transport, energy and packaging. We are fully focused on cost efficiencies in every aspect of our business in order to stay competitive.

Do rising costs make it more difficult to invest in things like sustainability?

KT: Perla Fruit is fully committed to quality, food safety and sustainability. These are in our genes and our non-negotiable. We are also running a project in order to neutralise our carbon footprint. We focus on customers who appreciate and recognise our efforts.

LEFT & BELOW—Perla chairman Kerim Taner says costs, including for personnel and packaging, are on the rise

Cherryway 4 makes mark

Maf Roda says its award-winning cherry sorting solution is a game changer for the industry.

by John Hey @johnfruitnet

Grading and sorting specialist Maf Roda is reflecting on a “sweet” year in the cherry sector after its new Cherry 4 sizer was awarded Product of the Year at the El Suplemento National Awards in Spain.

The company says the award is fitting recognition for a technology that has been “revolutionary” for cherry growers and generated significant interest from the postharvest sector.

ACCURATE SORTING AND QUALITY ANALYSIS

Launched in 2021, Cherryway 4 is a patented four-motion rotation system that provides a full view of the fruit’s surface, including the apical area, and increases the efficiency of fault detection along the packing line.

Maf Roda says the combination of the cherry sizer with the Cherryscan G7 quality analysis system is an “essential asset” for suppliers who want to offer their clients consistent and uniform standards.

“With the rotation inclusion, the stem no longer interferes with the analysis and the cameras can capture ‘clean’ images resulting in much more accurate sorting,” the company explains.

MULTIFORMAT FILLERS CATER TO RANGE OF NEEDS

In today’s market, packing systems need to be flexible and adaptable to various formats, Maf Roda notes. The company has developed different multiformat cherry fillers with precise weight stations to complete the automation of the entire packing process.

Maf Roda says the success of Cherryway 4 and its positive impact on the market are underpinned by the group’s commitment to research and development to produce stateof-the-art technology. “Research is a constant activity at our R&D centres spread about the world,” says the company.

ABOVE—The Cherryway 4 sorter combines with Cherryscan G7 quality analysis

LEFT—Maf Roda offers different multiformat cherry fillers

Maf Roda specialises in the development and manufacture of all automation processes inside a fruit and vegetable packhouse, from the infeed to the packing and palletising of product, including sorting systems and quality analysis. The company offers turnkey automation solutions for fresh fruit and vegetable growers and packers, with the aim of helping clients to achieve maximum efficiency and productivity at a minimum cost. _

“With the rotation inclusion, the stem no longer interferes with the analysis and the cameras can capture ‘clean’ images”

End-to-end improvement

associated with recruiting and retaining labour, reduces food waste, and maximises packouts.

As a leading manufacturer of integrated postharvest-to-pack solutions for cherries, Tomra Food has endeavoured to set the benchmark in optical sorting and grading technology for the food industry. Tomra broadened its offering to include solutions for cherry packhouses by acquiring two innovative companies, BBC Technologies and Compac.

BENEDETTA RICCI IAMINO

Tomra Food Global category director for cherries

Tomra’s cherry solutions perform every task on the line, delivering top-of-the-line throughput capabilities, handling gentleness, grading accuracy, and packing speed. The solutions are modular and scalable, meaning they can be tailored to businesses of all sizes.

The Cascade Singulator sits at the start of the line, separating cherry clusters. Whereas traditional cluster cutters push cherries at speed to blades, putting them at risk of pitting and bruising, the Cascade Singulator reduces the velocity by using a non-motorised water system that decelerates the water flow. By improving separation location, at the knuckle where two cherries join, each cluster’s centre is aligned to achieve clean and even separation without the risk of tearing the stems and damaging the fruits. Tomra’s unique dynamic lane balancing technology optimises capacity when filling each lane, improving capacity by up to 10-15 per cent. One example is a packhouse in Chile running Toma cherry lines at an average capacity of 670kg per lane per hour, compared to the industry standard of 400kg.

The popularity of cherries is especially evident in China during the Lunar New Year period.

To satisfy a seasonal feeding frenzy, packhouses have to work around the clock, while exporters send the fruit to market in ‘express’ boats and aircraft.

This is emblematic of what is happening throughout the year and around much of the world –these little red treasures simply can’t be grown or packed fast enough.

Packhouses are constantly under pressure to handle greater

volumes. At the same time as increasing throughputs, they must maintain or improve product quality.

Careless packaging can bruise or cut the fruit and loosen or remove stems. But to reliably detect defects, it’s necessary to inspect each fruit in its entirety, all 360 degrees, something many packhouses have traditionally found impossible. However, it is now possible to achieve a complete 360-degree inspection, thanks to state-ofthe-art sorting and grading technologies. This technology also increases output, improves product quality, reduces the problems

Powering 360-degree inspection is the InVision2 with TotalView Plus, which is capable of viewing 100 per cent of the fruit without blind spots and at full production speeds. Superior image quality improves the identification of nose cracks, stem bowl mildew, and suture splits.

Additionally, Tomra’s Small Fruit Sorter uses a series of patented systems that gently transport the cherries in water all the way to the cameras for inspection.

Efficiencies and packout returns are also enhanced by the rejected fruit having an exceptionally low goodin-bad ratio. The sorters’ ability to see just 0.1 mm difference between cherry sizes helps processors to segregate their product according to market demands. This not only pleases customers, it also maximises profits because in some markets the price difference between one cherry size and another ranges between 12 to 25 per cent.

Tomra’s newly launched KETE16 robotic packing machine integrates seamlessly with the filling machine CURO16 to cap off Tomra’s end-to-end cherry packhouses offering.

BELOW—Tomra’s InVision2 delivers a 360-degree inspection

Tomra’s end-to-end line solutions for cherry packhouses are improving efficiencies and profitability.

Every Cherry CountsTM

Transforming global food production to maximize food safety and minimize food loss by making sure Every Resource CountsTM.

Integrating the expertise of BBC Technologies & Compac, TOMRA Food is the global leader in integrated post harvest solutions for the fresh produce industry.

TFF-Sales@tomra.com | tomra.com/food