Price War on the Indonesian Grape Market Caused by Oversupply

Indonesia’s wholesale price for fresh grapes has been consistently declining until Week 25, and slightly moving upward in Week 26-28 at the range of USD 20-23.4/box. The overall downward trend has been afflicted by the large volume of cheaper Chilean products that entered the market since Q2, at nearly the same time as the arrival of the Australian grapes. Australian grapes were initially expected to be absorbed in Q1, yet logistic and manpower issues in origin country affected delayed shipments. Oversupply has been happening since mid-Q2, leading to a price war in East Java--the epicenter of nearly 45-65% imported grapes, based on POD location.