Fruit giant Hortifrut announced to its producers last week that it will permanently exit the cherry production and export business in Chile. According to the newspaper La Tercera, the company intends to concentrate its financial and operational resources on its core berry business.
The decision marks a significant turning point for the local fruit industry, making Hortifrut one of the first major players to step back after years of industry-wide challenges. The sector has been grappling with a difficult climate defined by oversupply in the Chinese market and a sustained decline in export prices.
Hortifrut Chile General Manager Pablo Klagges notified suppliers of the move in a letter dated May 28. In the correspondence, Klagges stated: "We would like to inform you that Hortifrut Chile has made the decision to cease direct development of the cherry business in the country, as part of a review of our operations and production portfolio."
The executive added that the change is a matter of strategic focus. "This decision is a strategic move aimed at concentrating our resources and capabilities on the berry business, which is Hortifrut's primary focus globally," the document cited by La Tercera explained.
Financial statements as of March 31 reveal that the cherry business accounted for only 5.6% of the company's planted area, equivalent to 240 hectares. Despite its small footprint within the total portfolio of 4,234 hectares, the cherry unit was the only segment to report losses during the first quarter of the year.
The financial report detailed that while the company generated $392 million in total revenue, the cherry segment accumulated $3.4 million in operating losses. Operating costs for this division reached $17.2 million, significantly outpacing the $13.9 million in revenue generated from fruit sales.
A Shift in Corporate Strategy
Hortifrut’s exit aligns with a broader vision of global consolidation. As reported by La Tercera, company chairman Nicolás Moller had already signaled at the shareholders' meeting that the firm would focus on the integration of berry genetics, production, and marketing.
While the corporation is leaving the sector, the Moller Opazo family—the holding company's founders—will maintain a minor presence in the business independently. Records from the latest shareholders' meeting indicate that Hortifrut transferred assets, fields, and the management of various cherry orchards to Inversiones IMG Ltda., a firm linked to directors Nicolás, Víctor, and Francisca Moller.
When asked about the exit, Fedefruta president Víctor Catán noted that the decision is not surprising. According to the trade association leader, the sector has faced quality issues and market saturation that have dampened the interest of various local players who had recently attempted to break into cherry cultivation.
