Approval of systems approach will boost Chilean table grape exports to the U.S.

After 24 years of dedicated efforts and negotiations, Chile and the United States have achieved a historic milestone: the approval of the systems approach protocol for exporting Chilean table grapes.

This protocol enables the regions of Atacama, Coquimbo, and parts of Valparaíso to export grapes to the United States without the need for fumigation. Instead, a series of mitigation measures at the source will enhance the quality and condition of the fruit.

This significant development was confirmed via a press release during an event on June 28 in Copiapó, Chile. The event featured key figures such as the Minister of Agriculture, Esteban Valenzuela, the U.S. Ambassador to Chile, Bernadette Meehan, the Undersecretary for International Economic Relations, Claudia Sanhueza, and the President of Fruits from Chile, Iván Marambio.

Benefits of the systems approach

With the systems approach, 60% of Chilean grapes can be exported without fumigation, thanks to mitigation measures at the source. This will improve fruit quality and boost competitiveness in the U.S. market.

The regions of Atacama and Coquimbo, major table grape growers, will benefit the most, securing a stronger position against increasing competition from other Southern Hemisphere suppliers.

This benefits not only Chilean exporters but also U.S. consumers, who will enjoy higher quality grapes.

Significance of the Chilean grape industry

Along with Peru, Chile is a global leader in table grape exports, with grapes being the country’s second most exported agricultural product after cherries.

In 2023, Chilean grape exports totaled $905 million, reaching 72 destinations worldwide. Shipments to the United States accounted for $431 million, nearly 50% of the country’s fresh grape exports, solidifying the U.S. as its largest market.

The new approval of the systems approach promises to further enhance the trade between the two countries, driving growth and profitability for both Chilean exporters and U.S importers.

What stakeholders in the grape industry can expect

Although the Systems Approach has been approved, the regulatory process must be completed, and the protocol officially published in the U.S. Federal Register. This formalization is crucial for the full implementation of the system, expected to significantly improve Chilean table grape exports to the U.S.

In the meantime, grape exporters and U.S. buyers should prepare and strengthen their commercial network to maximize the benefits of this new regulation.

At ProducePay, we understand the importance of this new protocol and are committed to support stakeholders in the industry during this transition. We partner with leading suppliers and retailers worldwide to create Predictable Commerce Programs. These programs enable growers to secure supply to buyers at committed prices and volumes. This provides greater financial stability, reduces supply chain volatility, and frees up capital for investment in growth.

Learn more about how ProducePay is helping agribusinesses grow through our solutions and agricultural expertise.

Source: SAG