Baika Chile: Multi-origin strategy and vertical integration
Baika has consolidated its presence in the Chilean domestic market with a strategy that combines the sale of imported fruit with its own production. Through its integrated structure, the company aims to supply its customers year-round, guaranteeing quality and consistency in its offerings.
Antonio Lante Della Rovere, Manager of Baika Fruit Chile and Peru, and Sebastián Peragallo, Commercial Manager of Fruta Fresca Chile and Peru, explain how they operate in this challenging market.
A strategy based on integration
Baika has developed a business model that covers the entire production chain, from importing and production to distribution. “We are vertically integrated, from importing fruit in Peru to direct delivery to our customers in Chile,” explains Antonio Lante Della Rovere. The company has its own facilities, including pre-ripening chambers and strategically located warehouses, allowing it to serve both distributors and supermarket chains, adding value with netted fruit.For his part, Sebastián Peragallo adds that the basis of the business is the supply of his own fields.
“ It has always been the fundamental pillar, which is why we are integrated from the field, the plant, and the exporter. We have been developing the domestic market for 20 years, in our beginnings with FRUCHAC, which is now Baika Chile, where we serve the main retail companies in a centralized way, always with a focus on the Chilean market due to the high consumption we have, which represents 8.6 kilos per capita,” he emphasized.
Domestic production and imports: The balance to guarantee supply
To ensure year-round avocado availability, Baika combines its own production with imports. “70% of the fruit we sell in Chile comes from our own farms, while the remaining 30% is obtained from strategic producers and imports, mainly from Peru,” Peragallo explains.Peru has become a key partner for Baika, not only because of its proximity, but also because of the consistent quality of its fruit. However, the company has also explored other sources of supply. “In the last year we imported exclusively from Peru, but we have worked with fruit from Mexico and are evaluating importing from Colombia and Brazil,” says Antonio Lante Della Rovere.
Baika's commitment to quality is reflected in its meticulous logistics management. "We manage logistics from the origin, controlling the temperature and condition of the fruit at every stage, from customs to storage and delivery to customers," explains Lante Della Rovere.
Peragallo also emphasizes the importance of certifications: “Our plant has BRC and other certifications, and we are constantly audited to guarantee the highest standards. Furthermore, we process the fruit within a maximum of 24 hours of its arrival, which allows us to maintain consistent quality.”
This is how Baika faces the challenge of maintaining a consistent supply regardless of the product's origin. "The biggest challenge is ensuring quality and minimizing differences between fruits from different origins," emphasizes Lante Della Rovere.
Regarding opportunities, the company seeks to expand its distributor network and strengthen its presence in other regions. “Avocado consumption isn't limited to Santiago; there's demand throughout Chile, and we see a great opportunity for growth there,” says Peragallo.
The Chilean market continues to evolve and presents significant expansion potential. “Chile is the second largest consumer of avocados per capita in the world. As we improve efficiency in plantations and optimize water use, the sector will continue to grow, which will also strengthen exports,” conclude Baika executives.
With a well-defined strategy and a focus on quality, Baika positions itself as a key player in the marketing of avocados in Chile, guaranteeing a continuous supply and adapting to market trends.
