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Here’s the latest update on last week´s cheery, bilingual posts on Chile-China cherry trade. It reads like a textbook case study in supply and demand, as well as a cautionary tale about the risks inherent in agriculture, exports, perishables, and trends in general.
From today’s El Mercurio: (translation and emphasis mine)
Oversupply of domestic exports to China cherries causes 50% drop in prices
Friday, January 27, 2012
Economy and Business
Miguel Concha M.
The rush for the fruit to land in China before the New Year holiday caused a collapse of the ports and sales systems of the Asian country. The price of Chilean cherries in China dropped by 50% in the past few days.
As explains Manuel Jose Alcaino, president of Decofrut, from January 23 fruit values were reduced from an average of U.S. $ 30 FOB per carton to U.S. $ 15 FOB.
The reason for the drastic fall is in response to an oversupply of cherries during the week before the Chinese New Year celebration, when by tradition many give gifts of fruit.
“We tried to get almost all the fruit to arrive before the celebration, which begins on January 23 and lasts for about a week. This stretched the country’s logistics system, making it collapse and causing a strong demand overload in a week, “said Alcaino.
The specialist added that a large proportion of the Chilean cherry sales in the Asian giant occur around Chinese New Year. In 2012 that date was earlier than in previous years, based on the location of the moon, so Chilean companies increased their efforts to make the cherries arrive in time for the celebration.
This resulted in three boats filled with about 700 containers, which together totaled about 14,000 tons of fruit.
“There were blocks and blocks of fruit trucks trying to enter the city through the port of Guangzhou. In addition, the market itself was also a mess because the volumes had exceeded sales opportunities in the city,” says Decofrut president.
The problem faced by exporters in the world’s second largest economy is not small, when you consider that is the main market for cherries. In fact, Asia accounts for about 60% of total shipments of the fruit.
Moreover, in recent years, exports of Chilean cherries to China had experienced a real boom: growth of 91%. Prices hit more than U.S. $ 40 FOB per box.
According to data from the Fruit Exporters Association (Asoex) in the 2010-2011 season a total of 7211 tons of cherries arrived in China , versus 3772 tons in 2009-2010.
Alcaino adds that part of the reason for the haste why this large amount was sent, was in response to the high expectations they had for exporters this year, based on the strong growth in previous years.
Yesterday I tweeted:
So far this link has been shared, retweeted, and favorite’d 15 times, which is a lot more than most of the links, pictures, and observations I share on Twitter.
Why this tweet? I have some ideas.
1) Clear Audience. I addressed this tweet towards China-philes. This is a relatively broad, inclusive, and self-defined category, and there are a lot of China-philes on Twitter.
2) Specific Keywords. A grad student friend once referred to Harvard as the H-bomb. This name catches people’s attention!
3) Immediate Benefit. The course is available online. It’s free. A Harvard education for anyone with an internet connection and the attention span to sit through a lecture (or 37!)
What do you think? When do you find that your tweets get a lot of attention?
I spent Christmas at home in San Francisco, and wanted to come back to Chile to ring in 2012. So I booked a one-way ticket on Aeromexico, which happened to be the cheapest one-way flight I could find, and included a 16-hour layover in Mexico City (roughly 7am-11pm).
Despite the fact that I couldn’t get much sleep on the 1am flight from San Francisco to Mexico City, I enjoyed my layover adventure.
Before I left home, I downloaded Jim Johnston’s Mexico City: An Opinionated Guide for the Curious Traveler onto the Kindle app on my iPod Touch. Very helpful!
After exchanging $100 in cash for Mexican pesos and grabbing a much-appreciated cup of coffee, I got a city map and found the official taxi stalls. I had heard horror stories about unlicensed cabs in Mexico City and chose to play it safe.
I asked the driver to take me to the Zócalo.
Zócalo, early morning with Christmas decorations.
Flags adorn a gorgeous church, not far from the Zócalo
Huevos divorciados, a classic Mexican breakfast. Two fried eggs, one with red sauce, one with green. Served up with chilaquiles and a much-needed café con leche.
I strolled in and out of several pretty churches.
Such pretty light!
I then walked to the Palacio de Bellas Artes, where there was a special four-gallery exhibit of sculptures by Gustavo Perez. Each piece juxtaposed the whiteness of porcelain with the blackness and unequaled plasticity of black mud from Oaxaca. So striking.
I then followed my guidebook’s advice and took the subway to Colonia Condesa, an upscale residential neighborhood. I got slightly confused on the subway and needed to backtrack more than once, but I was glad to have plenty of time and no one following my directions. I think the subway was much less crowded than usual, since I was there during a holiday week.
Pretty house in Colonia Condesa
Dogwash-Mobile! What a brilliant idea!
"To sustain this park demands great expenses. Cooperate with us by not permitting its mistreatment." A different rhetorical tactic than I've seen at parks in other places.
My main goal during my long layover was to find the authentic Mexican food that I was spoiled with as a child. Though it did not equal Nana Petra's famous cauliflower casserole, this gordita was tasty.
Not long after that gordita, I got caught in the rain. In the dark. Exhausted. Umbrella-less, I scurried through the rain until I finally found an open restaurant (a lot of places were closed since most of the city was on vacation.) There I ate a decent strawberry and goat cheese salad and asked the waitress to call me a cab to the airport.
I arrived at the airport with ample time to browse through Duty Free’s selection of fine tequila. I chose a brand called Suave.
Overall, I enjoyed my layover in Mexico City, and I would recommend it to anyone who wants to save money and enjoy some nice art, architecture, and tacos.
If you have a long layover in Mexico City, you should also read this post: Mexico City – All the Fun You Can Have in 10 Hours by Jack and Jill Travel the World
I pretended to give a speech at EXPO CHINA, at Santiago's Estación Mapocho. Maybe next year!
If 2010 was the year I spent thinking about Chile from China, 2011 has been the year I took action on this vision. It has been a crazy year, and I am so happy about where I am right now, in the final days of 2011.
The last day of 2010 was my last day of an intense job as a copywriter for a very big Chinese client of a very big Japanese advertising agency. I had originally intended to stay for at least a year, but the combination of long hours (until 5, 6, 7, 8am at least twice a week) and corporate policies that I didn’t understand took a heavy toll on my sanity, and I decided that I could not sign a long-term contract. So New Year’s 2011 marked a new beginning.
I celebrated my 27th birthday on January 5 in Beijing, with a delicious dinner at Nice Rice and festive drinks at Mao Mao Chong. Stephanie brought balloon animals, which added special flair to the occasion.
My hairstylist (#8 - I miss him!) gave me curls and the balloons really brought life to the party.
Angie, me, Shepherd, and Sean. At Mao Mao Chong in Beijing celebrating my 27th birthday.
When I left my advertising job, I intended to write a book about careers for young foreigners in China. I created this simple website and began to brainstorm an ambitious book proposal. But I soon lost all motivation. I could hardly get out of bed. How could I write a book about the advantages of launching a career in China? My own China career hit a low point. I had plenty of freelance work — tutoring a sweet UK-bound high school student, training an upstart recruitment firm, planning a charity cycling event — but I felt overwhelmingly reactive, and was not doing my best work.
Following a sunny family vacation in Thailand and Cambodia, my brother visited me in Beijing and we visited the snow-covered Great Wall at Mutianyu. The day was pretty and not bone-chillingly cold.
In March I received an unexpected but ultimately life-changing email from a Canadian-American renewable energy entrepreneur who I’d met in Chile in 2005. She invited me to upload my resume and a full scan of my passport as part of her solar energy startup’s application to Start-Up Chile. In May we found out that we’d been accepted to the program. In June I bought a one-way ticket home. Two weeks later I packed up all my belongings, made a huge donation of clothes and shoes and random supplies to a local charity, and planned a simple farewell party at my favorite rooftop Yunnan restaurant.
I packed my stuff into these 2 suitcases and 2 bags, and hailed a cab to the airport. Zaijian Zhongguo!!
On the plane home, I wrote this: Dear China: It’s Not You, It’s Me. Let’s Be Friends Forever. That post meant more than anything else I wrote this year, and I received dozens of comments and emails from friends near and far.
I spent about three weeks at home in California, partying with my parents’ friends on “the Lane” and visiting my brother in Hermosa Beach for the 4th of July. This was my first time experiencing the new lives that my closest family members have built while I have been on the other side of the world.
My parents' most obedient child, Max.
In mid-July, I landed in Chile. Thanks the to generous hospitality of Roberto Edwards and his team, the open doors of Start-Up Chile, the strong support from Marcelo Peralta, and so much more, Chile has given me the opportunity to bring my passions together.
For years people have been telling me that someday they envision me running my own company, but before I landed in Chile I didn’t really think I could do it. Working in a gorgeous office with entrepreneurs from all over the world, and giving speeches in Spanish to encourage the next generation of entrepreneurs has shown me that yes, it is possible.
Thank you to my first clients — Trey, Chai, Luis, Victor, Juan Cristóbal, Charlotte, Adam — for believing in me and what is becoming my consulting practice, Tricontinental Advisors.
Grazie to my designer friends -- Nicoletta, who created the Tricontinental Advisors logo, and Sara, who made the Beyond Chile's Single Story banner -- for making my websites look more professional.
Thank you Joe, Fu and Yuli for helping with Chinese translation. Thank you to everyone who has taught me Spanish, particularly Nana Petra for love-filled Spanish lessons throughout the first five years of my life, the University of California Education Abroad Program that brought me to Chile in 2005, and Marcelo who continually teaches me new words and phrases.
Thank you to all the wonderful people I have met through the power of social media: Akhila, Alexis, Andrea, Dan, Gia, Hilary, Humberto, Jacci, Kyle, Roxanne, Sarah, Sarah, Stacie, Susan, and so many more. Thank you to everyone who reads this blog, especially the lurkers (say hi!)
Thank you Start-Up Chile and the Ministry of Economy, for shaping a new culture of global entrepreneurship in this gorgeous country of contrasts, a place that has always embodied the entrepreneurial spirit.
Thank you Grandma Ginny. Every writer should have a pen pal like you. I look forward to seeing you in a few days.
Thank you Ben. I am so excited to show you and your team the entrepreneurial side of Chile in 2012!!
Thank you to my parents for their enthusiastic support of my international adventures, and their resourceful use of frequent flier miles that enable their international adventures to coincide with mine.
This list is incomplete; I could write pages and pages more. From the bottom of my heart, thank you all!
Here’s to health, happiness, and prosperity in 2012 and beyond!
Lots of love,
Leslie
Today I’ve read a handful of fabulous posts about entrepreneur-istas, and I’d like to share them with you.
1) I loved Alicia Morga’s series of posts from her trip to Azerbaijan. She writes:
So why Azerbaijan, the Land of Fire? Well, I was invited by the U.S. State Department to share my experiences as a female entrepreneur with women around the country.
When I landed in Azerbaijan, cultural attaché Chris Jones picked me up at the airport and immediately handed me a cell phone and a large packet. I felt like I had parachuted into a scene in Mission Impossible. …
Azerbaijani folk dance, via Flickr Creative Commons
Talking to women, young and old, I learned how much they defeat themselves. They see no use in trying. There is a culture of can’t – even in the face of real life examples of can.
There are successful women entrepreneurs in Azerbaijan. I was fortunate to meet many, including a woman who started the few and largest bookstores, a woman who opened a tea house for women, and even a woman who started her own bakery with another woman friend at the age of 52. Where at least one person has accomplished something, in my mind it means that more can follow – the path is forged and it’s possible.
But I was frustrated to run up against mindsets that were either completely fixed and negative or unrealistically attached to Oprah-isms – dream it and it will come true – without moving to put in the work. Adding to the problem was the general fear of admitting to not knowing something and a very palpable fear of failure.
Though it’s not difficult to see how that might flow from the top. Dictatorships are not exactly known for their creativity. It’s hard to be creative when you’re not allowed to fail. It’s easy to feel defeated when you’re surrounded by corruption.
Still I did my best to convey hope and inspire the women I met to pursue education and consider entrepreneurship.
Many of the women I met we’re eager to learn and welcoming. Young girls came up to me asking for pictures and easily draped their arms around me. One young girl went to hug me and stopped abruptly, catching herself and sucking in her breath like she had seen a ghost. “Is it okay to touch you?” she asked, “I know that Americans don’t like to be touched.” I laughed and gave her a big hug. [more]
She also gives a list of practical tips for women traveling to Azerbaijan, such as:
some odd but true cultural guidelines:
a. It’s not appropriate to go outside with wet hair; if you walk around with wet hair it implies that you just had sex
b. It’s also not appropriate to put on Chapstick in public – again, it has sexual connotations [more]
2) I was delighted to see fellow StartUp Chile entrepreneur Yifan Zhang on the list of 20 Brazen Young Professionals to Watch in 2012. She’s in great company! Guess who nominated her? Here’s Brazen’s blurb about this brilliant young entrepreneur:
Yifan Zhang: A recent Harvard graduate, Yifan founded Gym-Pact, a mobile app that motivates you to work out; it launches nationally on Jan. 1. Yifan also founded Styleta, a nonprofit fashion organization.
3) I really liked this post by Pam Slim: The Deeper Root. She asks:
Why are you doing this (business) (parenting) (difficult project) (job)?
What will happen if you succeed?
Will it be worth it even if you fail?
Why does it matter?
What will you regret not doing?
What will you rejoice leaving as a legacy? [more]
4) Last but not least, I did this interview for The Workpreneur, which Ryan titled La Entrepreneur-ista.
Have a great day!
I'm Leslie and I connect entrepreneurs in Chile, China, California, and beyond — especially through translation, training, and trade. More about me.
