International Demand Sparks Organic Market in Chile

It is somewhat disheartening that it is far easier to find Grade “A” Chilean organic produce in the United States than it is in Chile; the phrase “Productos de Exportación” is essentially synonymous with premium grade produce, thereby greatly diminishing the availability of the highest quality produce in Chile. I was explained to it as such: If you sell the apples from the tree in your backyard, would you eat the large, pretty apples that earn premium price or smaller apples with slight bruises and discoloration but taste the same? Chances are aesthetics are less important for self-consumption and you would sell the higher grade apples. Whereas the example may not perfectly translate to the macro scale, it serves to  emphasize the economic perspective of the situation. The irony is after the long journey in transit, the non-exported produce of a lesser quality are often fresher and tastier than the “productos de exportación” at their final destination point. 

Chilean organic agriculture on a commercial scale essentially exists strictly because of the demand in the United States and Europe, with lighter demand from Japan and Canada. Whereas many subsistence farmers plant organically for themselves and have no interest in official certification, large scale certified organic producers enter the market largely because they are paid a premium from international buyers, making it profitable in the long term with other ecological benefits. It is interesting to me that one of the reasons people (principally in developed countries) buy organic produce is that it has less harmful effects on the soil and the environment, but there are also personal health reasons considered when buying the produce. But the impression that I have gotten in Chile is that the higher prices and more secure market of growing organic produce is the principal reason for the switch to organic agriculture, followed by environmental benefits. So even though the environmental benefits of organic agriculture primarily do good to the land and people of Chile, it is the international demand that spurs the organic agriculture industry.

The market for organic agriculture is still very small in Chile; I once asked a university student studying agriculture and taking an organic agriculture class where it was possible to find organic produce locally, and he gave a short chuckle and responded, “Good question…” and after thinking for a couple of seconds, stated the only place he knew to buy organic produce, was “Jumbo.” Despite the hundreds of markets and thousands of venders, the largest supermarkets, comparable to a Walmart, are generally the only places outside of Santiago possible to find organic produce. Organic produce that was rejected for exportation and forr that reason is sold nationally. Approximately 10-20% of organic produce is rejected by inspection agents, like the USDA, at packing facilities. One of the most important reasons of rejection is that the produce contains traces of an insect or pest; whereas this prevents the product from exportation, often times it can still be consumed and so is sold nationally. 

Chile has several attributes that makes it naturally disposed to organic production. One important attribute is that it is geographically isolated, making the area protected from many maladies that plague other agricultural regions. With the desert to the north, ocean to the west, Andes to the east, and Antarctica to the south, it has been spared from many diseases that have devastated other agricultural regions (This also plays an important role to why Chilean customs agents are so strict about the entrance of meat and produce). A second benefit is that the country is in the southern hemisphere, where the prime growing season takes place during the North American and European winter. This fact undoubtedly contributes greatly to the demand for Chilean organic and conventionally grown produce. A third has to do with the infrastructure; Chile has good communication and transportation within the country, particularly in growing regions. This makes it relatively easy and inexpensive to transport produce within regions, to packaging facilities, and to the ports.

The total value of Chilean organic crops has increased exponentially in recent years. Cherries, apples, avocadoes, lemons and wines are all crops and products grown organically and exported. It seems ridiculous to me to ship organic produce 6,000 miles, as if that trip is good for the environment. However, if the two options are organic cherries from Chile or conventional cherries from Chile, you may as well support organic agriculture in Chile and go organic.     

The (certified) organic market in Chile is based almost strictly off of international demand.

Although the process to gain official organic certification takes several years and can be costly, some growers believe the cost is worth it because there is a guaranteed buyer at a premium cost.

A poster showing the different characteristics of a Pink Lady apple

Size and markings/ blemishes are the main characteristics for grading an apple. The apple on the left is of a higher grade and quality than the one on the right, although the taste is generally the same. 

Once it finally reaches the US the smaller, blemished apple in Chile is fresher off the tree and of superior taste than the larger, unblemished apple sent to the US or Europe. 

This is the most convenient place to go to find organic produce in Chile. 

The section is pretty much exportation rejects but they are still okay to eat. A common reason for rejection is that it was found contaminated by a bug or pest. Foreign inspection agents are at the packing plant in Chile, preventing a ship from even departing if the produce is found with a pest or malady.