Uruguay: "We distinguish ourselves by not exporting to the United States"
"Normally we start our exports from mid-September. The production at the beginning of the season is used for the domestic market or to export to neighboring countries. As soon as we have larger volumes available, we begin to export to the international market. Last season started early due to a mild winter, resulting in an increase in volumes sold to the domestic market. The blueberry season in Uruguay ends approximately in January, although it depends on the variety and location of the farms“explains Diego Castagnasso, from Azul Sereno in Uruguay.
According to Diego, the national market normally accounts for a very small percentage of his total sales, since international exports are the engine of his business. “The main export destination of Uruguay is North America, which absorbs around 70% of all production. The rest is exported to Europe, for example, England, Holland and Germany. It should be noted that Holland often redistributes it to other countries such as Belgium, Poland and Spain. Only a small percentage is exported from Uruguay to the Middle East".
Europe
"Although this applies to almost all blueberry exporters in Uruguay, we have distinguished ourselves by not exporting to the United States for 10 years. For years, we export the largest volumes to the United Kingdom, followed by Europe as a continent. At 2015, approximately 95% of all our fruit was exported to England. After everything changed, last year the largest volumes were exported to Europe and less to the United Kingdomsays Diego.
According to Diego, the reason for this change is mainly the market itself and the role of supermarkets. “There was a constant need to lower prices. Unfortunately, our production costs are quite high, so we can not offer our fruit at low prices. In addition, we noticed that South Africa offered an additional volume at low prices due to its lower costs. By selling their fruit at lower prices, it is possible to obtain a greater share of the market".
"For us it is better to look for markets that are willing to pay the correct price for our quality fruit. This is one of the reasons why we will try to start exporting to the United States again. The price level can be higher than in Europe and absorbs more volume".
Packaging installation
Azul Sereno's strategy is to keep moving and developing, like changing and renewing varieties. “Having a packaging facility in Breda, in the Netherlands, is also part of this strategy. We work with some major clients and other volume is available for smaller clients or to be sold on the spot market. The idea of having our own packaging facilities is to ship the berries in bulk, and repackage only what the customer requires at the time. An advantage is that we are more efficient in logistics, and this advantage can be used for the repackaging process".
Another advantage that Diego highlights is that they have more confidence in the quality with this new way of selling their fruit. “We check the fruit on arrival and during the packaging process. The fruit is packed only a few hours from the destination. Therefore, we can ensure the quality of our fruits. In addition, as the fruit is already in Europe, it is easier for us to react to the market situation".
"Production always varies, which is normal in our sector. There is a program and a reality, so we must be prepared and we need to be strategic. This packaging facility is a new service, which helps me move in different directions. For now I prefer to grow the best fruit possible on my farms and then look for a market to sell it. There is always a market for good quality fruitDiego concludes.
Source: FreshPlaza
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