News / US tariff threat sees Latin American fruit exporters on the hunt for fresh markets

© Rosshelen

Global fruit supply chains are in flux. Surging output is one factor, tariffs are another. And Valle y Pampa, one of the largest blueberry exporters in Peru, has China in its sights.

Historically, the company has sent about 60% of its fruit to the US and the rest to Europe, but this year management aims to ship 10% of the harvest to China.

According to Peru’s foreign trade and tourism minister Ursula Leon, agricultural exporters are stepping up their search for new markets, partly in response to looming US tariffs, which if implemented would dampen the flow to their largest market.

China, India, and Indonesia are regarded as promising markets, she added.

The pressure is intensified by the continuing growth in production: Peru’s blueberry harvest is forecast to rise 25% this year, to 400,000 tons.

The allure of China is heavily strengthened by improved shipping connections, thanks to the opening of the port of Chancay in November, which was fuelled by a $1.4bn investment from Cosco Shipping Ports. It marked the first investment from China in Latin America under Beijing’s Belt and Road initiative.

In April Cosco started a direct route between Chancy and Guangzhou, carrying Chinese merchandise like electronics, household appliances, toys and furniture headed for South America on the eastbound journey, and mostly fruit and vegetables in the opposite direction.

According to Valle y Pampa, the faster transit times, of about 20 days, and lower costs make the port a game-changer.

While Peruvian growers are looking to China, their Chilean competitors in the cherry sector are trending in the opposite direction, looking to sell more of their crop to the US, Europe, and Brazil in an effort to reduce their reliance on the Asian market.

Last year China accounted for 90% of Chile’s cherry exports. The volume continued to rise, but prices slumped more than 30% from 2023 levels while shipping and storage costs increased. On top of this, a number of cherry exporters were affected by the saga of the Maersk Saltero, which suffered catastrophic engine failure on its way to China carrying five million boxes of cherries. It finally reached Nansha after the lunar new year festival, for which the load had been shipped. Estimates of the loss incurred go as high as to $130m.

Chile and Peru are locked in a fierce rivalry in perishables exports. The latter climbed to the top global exporter spot in blueberries in 2021, and is also advancing in other crops. The last table grape season saw a 32% increase in Peruvian exports, whereas Chilean exports rose 5%.

In Asia, Vietnamese perishables exporters are also shifting their focus. Fruit and vegetable exports to China were down 33% year on year for the first four months of this year, whereas exports to the EU and US soared 41% and 66% respectively.

Growers are waiting for a final word on US tariffs, though. Their concern is not only the levy they face (north of 20% would be challenging, according to one report), but also how US tariffs on rivals like Thailand will stack up.

In the US, there is also concern about the impact of tariffs on perishables imports. According to Blue Yonder, a reduction in blueberry imports would see smaller vendors face significant inventory shortages, owing to the limited domestic production. US lemon growers, on the other hand, are reportedly enjoying increased demand and higher prices, as the tariff threat has slowed imports.