Smartcherry spoke with the commercial and agricultural director of ProChile in Tokyo, Nury Disegni, who told us that the Chilean fruit industry stands out for its color, firmness and flavor in Japan. The main products exported from Chile to Japan are fresh grapes and, of course, fresh cherries, where our country is the second largest supplier, surpassed only by the United States.
Disegni highlights that Japan is currently the third largest economy in the world and at the same time, it is positioned as the third destination for Chilean non-copper exports, which reflects the good work done with this destination. “To continue on this path, we believe it is important to continue promoting our quality and safety standards, to maintain it as a strategic ally that contributes to the development of both countries,” he pointed out.
What are your main objectives and priorities upon taking office?
Japan is a constantly changing market that is committed to innovation, sets global trends and is characterized by always seeking new challenges. This is where we must be vigilant and alert, in order to be able to reconcile our long diplomatic and economic tradition of more than 125 years with the avant-garde and current, which requires that our ties be strong and long-lasting.
Our challenge is to continue to build loyalty among importers in this market, whom we are constantly educating about our attributes of quality, safety, security and traceability, highlighting of course their functionality, all elements of high added value of our agricultural products.
But in addition to strengthening existing ties, we must create new trade opportunities to continue growing, and to do so we are negotiating new health openings and exploring development options for those products that have benefited from the entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), taking into account tariff preferences.
What specific initiatives are being considered to promote Chilean products and services in the Japanese market?
Among the initiatives we are working on to promote our products here in Japan is to strongly highlight our attributes of quality, safety, security and traceability, highlighting of course their functionality, which will allow us to differentiate ourselves from our competitors. Our strategy aims to highlight the sustainability processes in the production of our goods and services, to highlight the existence of niche products and those that are classified as premium, since this allows us to expand our export offer, in addition to improving our positioning in the market.
We also want to work on promotional activities aimed at end consumers at points of sale where we can highlight the added value of our products. In addition to this, what we do on social media is important, since they are highly used platforms in this destination that require our attention.
What potential does the fruit industry have for continued growth in Japan? How much fruit does Chile export to Japan and what are the projections?
Chile is recognized for the quality of its exports and in particular for the fruit that reaches its destination markets, as is the case in Japan, a market where the Chilean fruit industry stands out for its color, firmness and flavor.
By 2022, we will rank seventh in the ranking of fresh fruit suppliers in Japan, in terms of value and volume, totaling US$$47 million, registering an increase of 1.2% compared to the previous year (Quantity & Value: Annual through 2022). Thus, the main products exported from Chile to Japan are fresh grapes, fresh cherries (where we are the second largest supplier, surpassed only by the United States) and fresh citrus fruits.
We believe that there is still room for further growth, as long as we continue to promote the value attributes of our products, in order to differentiate ourselves from our competitors in the market. We must consider that Japanese consumers are very sensitive and value these attributes, so it is important that we emphasize the quality and safety of our products, among other important attributes.
Are there any Japanese companies interested in providing services, for example, technological services, to Chilean fruit exporters?
Of course, there are companies interested in providing services, just as there is interest on our part to work collaboratively, in order to acquire new knowledge that can be applied in Chile.
We have identified opportunities for collaboration in logistics systems, which are essential for our products to reach the market quickly and safely, along with port and warehouse services, among many others. These types of services allow for shorter shipping times, while also being safe, as they guarantee that the products reach all cities and towns in Japan, always preserving their attributes of quality, freshness and traceability. We must not forget that the Japanese tend to eat these products raw, which drives us to speed up processes, being very well connected and providing security to importers and consumers.
Can we say that the cherry sector is one of the sectors with the greatest growth potential? Could you tell us whether you have seen any evolution in the cherry market since your previous visit to Japan until now?
In 2022, we are positioned as the second supplier of cherries in this market, just after the United States, with a growth of 28%, compared to 2021.
With this data, I can indeed see an evolution since the last time I was here in 2018. In my opinion, it is not only because there is interest from Japanese importers in Chilean cherries, but also from Chilean exporters who are interested in coming to offer their products, seeing that they have windows of opportunity to offer their products during the Christmas holidays and for Valentine's Day.
Currently, we have a relatively small share, but this is growing. In addition, it should be noted that since 2014, the health protocol that facilitated the entry of cherries into Japan (System Approach) came into force and exporters have had to adjust to the health requirements for labeling and marking that Japan demands for the entry of fresh cherries from Chile.
Could we expect Chilean cherry exports to grow proportionally as successfully as they have in China?
In my view, cherries have the opportunity to grow in Japan because importers, distributors and retailers recognise the quality of Chilean cherries, appreciating their colour and size attributes, and standing out from their competitors, such as those in New Zealand and Australia. Chilean cherries even enter the Japanese market at times when there is no other cherry supply. However, to achieve greater growth we must increase promotion that highlights their quality attributes among importers and end consumers.
As in China, does cherry have a value and prestige in Japan to be given as a gift on certain holidays? Which ones?
That's right, Chilean cherries enter the Japanese market at the end of November and, depending on the variety, they could arrive as late as February. During this time, two important holidays for consumers are celebrated in Japan: Christmas and Valentine's Day.
Christmas is not celebrated here as we do in the West, but rather it is a time to give gifts to friends and family. In Japan, as well as in other Asian cultures, it is customary to give high-quality fruits that come in luxurious packaging. Because of their red color, cherries are a good gift choice for all three holidays.
What challenges do you foresee in promoting Chilean cherry exports in Japan? What should exporters pay attention to?
We have identified two major challenges: one is promotion, because the main supplier of cherries to Japan is the United States, often marketing this product as "American Cherry"For this reason, we believe that our work should focus on the seal of origin, so that the end consumer can differentiate us and prefer our products.
The second challenge, and one we are actively supporting, is that exporters comply with the requirements for entry into Japan. So far we have detected failures at the time of entry, particularly with regard to the labelling of boxes arriving in Japan.
Based on your experience in the country, what would you say to companies interested in entering the Japanese market regarding cultural and commercial barriers?
I believe that it is extremely important to learn about this market in order to be able to invest in it, and in this regard, businessmen have the full support of the ProChile Commercial Office here in Tokyo. There are certain factors that we must take into account, such as the way of doing business, the commitment that must be adopted and the prior work that must be done.
In this context, one of the factors I would highlight is that the Japanese consumer is very sophisticated, follows fashion trends and seeks healthy foods that improve their well-being. They are interested in knowing the origin of the fruit, they are attracted by new varieties, the production process, and even knowing who is involved in production.
Likewise, doing business in Japan takes time. You must work on building trust with your counterparties, demonstrating the expertise and quality of your products, their quality and labeling. This opens up many possibilities for establishing a long-term business relationship.
Considering your previous experience as an Agricultural Attaché in Japan, what does it mean to you to have returned, assuming the position of Commercial Director of ProChile in Japan?
I must first highlight the human group that exists both in the ProChile Commercial Office and in the Agricultural Attaché Office. Without a doubt, that was one of my main motivations for assuming this position, since their commitment and responsibility create an optimal work environment, always having as a goal the promotion of Chile and the growth of the bilateral economic relationship with Japan.
Although we have a different language, culture and traditions with Japan, there are many things in common that make this a unique opportunity. I took on the challenge because I believe that we must continue to strengthen our ties, aiming to increase our presence in this destination, which is making great strides in areas such as Agri-Food, Creative Industries, Science, Innovation and Technology.
