W4 2025: Grape Weekly Update

Published 2025년 1월 31일
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In W4 in the grape landscape, some of the most relevant trends included:

  • Chile, Peru, South Africa, and Nigeria are all expanding grape farming, focusing on increasing exports and improving farming infrastructure. In particular, Chile has launched innovative methods, while Peru is on track for a record export season.
  • Grape prices in Chile, Peru, and South Africa are experiencing downward pressure due to peak harvest seasons and increased supply in Chile, Peru, and South Africa. Despite this, premium grape varieties in stable export markets, such as the US and EU, continue to see strong demand, helping stabilize prices.
  • Export logistics, including container shortages and congestion at key ports like Callao, are impacting the grape supply chain, leading to inefficiencies and additional pressure on prices. Chile and Peru are both addressing this with infrastructure upgrades and considering alternative ports.
  • South Africa is emphasizing early harvests to avoid late-season rainfall risks and take advantage of stable markets like the US and Canada, showcasing adaptability to shifting climate and market dynamics.

1. Weekly News

Chile

Chile Launches Grape Exports to the US Using Systems Approach

Chile has launched its table grape export season to the United States (US) using the innovative Systems Approach, which eliminates the need for methyl bromide fumigation. Implemented after 24 years of negotiations with the United States Department of Agriculture (USDA), this method has been developed to preserve fruit quality, extend shelf life, and boost the competitiveness of Chilean grapes in the US market. Under the strict supervision of the Agricultural and Livestock Service (SAG), the approach ensures full compliance with US phytosanitary standards at every stage, from production to transportation. This advancement provides Chilean grape producers with improved market conditions and higher prices, strengthening their position in a primary export market.

Chile's Table Grape Season Off to a Strong Start

The 2025 Chilean table grape season started with optimism, driven by favorable weather in the Atacama, Coquimbo, and Valparaíso regions, resulting in high-quality fruit with excellent brix levels. Exports to major markets, including the US, are progressing under the Systems Approach, with popular varieties like Sweet Celebration, Cotton Candy, and Sweet Globe commanding strong prices between USD 34 and USD 40 for premium grades. Despite these positives, logistical challenges such as shipping delays and high freight costs remain a concern. Industry leaders stress the need for market diversification and careful volume management to sustain strong performance and prevent market oversupply.

Nigeria

Kaduna's Commitment to Increasing Grape Farming in Nigeria

In Nigeria, Kaduna State is emerging as a hub for grape farming through government-supported initiatives such as providing seedlings, mechanization, and farmer training. The Kaduna State's Governor reaffirmed the administration’s commitment during a meeting with the Grapes Producers, Processors, and Marketers Association of Nigeria (NGRAPPMAN), highlighting the Kudan local government area as a primary center for grape cultivation. These efforts aim to position Nigeria among Africa's top 10 grape producers while fostering job creation and economic growth. This initiative aligns with the government’s broader focus on agriculture to enhance food security and empower farmers.

Peru

Peru's Table Grape Exports to Exceed 80 Million Boxes in 2024/25 Season

Peru is expected to achieve a record-breaking table grape export season for 2024/25, with projections exceeding 80 million 8.2-kilogram (kg) boxes, surpassing the initial estimate of 78 million 8.2-kg boxes. By W3, exports had already reached the 2023/24 season's total of 64 million 8.2-kg boxes, driven by contributions from key regions like Piura and Lambayeque, which accounted for over 35 million 8.2-kg boxes. While drought in the north raises concerns for future harvests, logistical challenges such as container shortages and congestion at the Port of Callao underscore the urgent need for improved infrastructure. Moreover, alternative ports like Pisco and the upcoming Chancay are being considered to enhance efficiency and support the growing export demand.

South Africa

South Africa's Hex River Valley Grape Growers Focus on Early Harvests to Boost Export Opportunities

Grape growers in South Africa's Hex River Valley prioritize early harvests to mitigate the increasing risk of rain during the late season and aim to complete packing by W10. Known for its Crimson table grapes, the region has adopted early-ripening varieties such as ARRA's FIRE CRUNCH™ and Sun World's Ruby Rush®, allowing growers to pack earlier while maintaining exceptional quality. Favorable logistics and dry conditions have supported an efficient season, with promising export opportunities to stable markets like the US and Canada, which are becoming more attractive compared to volatile destinations like China. The Hex River Valley remains a key player in South Africa's table grape industry through continuous innovation and adaptation to shifting climate and market dynamics.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

* All pricing is wholesale * Varieties: Chile (Thompson Seedless), Peru (Grape Italia), South Africa (White Seedless), and India (Green Grape)

Yearly Change in Grape Pricing Important Exporters (W4 2024 to W4 2025)

* All pricing is wholesale * Varieties: Chile (Thompson Seedless), Peru (Grape Italia), South Africa (White Seedless), and India (Green Grape) * Blank spaces on the graph signify data unavailability stemming from factors like missing data, supply unavailability, or seasonality

Chile

Chile's grape prices dropped significantly by 32.66% week-on-week (WoW) to USD 0.67/kg in W4, showing a 36.51% month-on-month (MoM) decline and a 26.92% year-on-year (YoY) decrease due to a sharp increase in supply as the harvest season reached its peak, particularly for early varieties like Sweet Celebration and Cotton Candy. The surge in volumes entering the market led to increased competition and aggressive pricing strategies aimed at securing market share. While the quality of the grapes remained high due to favorable weather conditions and the implementation of the Systems Approach for US exports, these factors were unable to fully counterbalance the downward price pressure resulting from the market oversupply.

Peru

Grape prices in Peru dropped by 13.60% WoW to USD 0.78/kg in W4, with a 16.39% MoM decrease and a 6.36% YoY decline. The price decline is due to the continued peak export season, which resulted in a supply surge, particularly from the northern regions like Piura and Lambayeque. The increased availability of popular varieties like Sweet Globe, Red Globe, and Allison added downward pressure on prices as exporters intensified competition to secure market share. Logistical challenges, including container shortages and congestion at the Port of Callao, further contributed to the price drop, as delays and inefficiencies affected the timely movement of goods. However, the overall demand for premium grape varieties remained strong, supporting some price stabilization.

South Africa

In W4, grape prices in South Africa dropped slightly by 3.61% WoW to USD 1.62/kg due to increased supply levels from the ongoing harvest, particularly from key regions like the Hex River, Berg River, and Orange River. The availability of early-ripening varieties and the large volumes entering the market put downward pressure on prices. However, YoY prices increased by 10.98% due to strong export performance, particularly to stable markets like the EU and United Kingdom (UK), which account for a significant portion of the shipments, alongside a focus on high-quality table grapes such as Crimson and newer early varieties. The continued rise in export volumes and consistent demand from premium markets helped support the YoY price growth.

3. Actionable Recommendations

Manage Exports and Diversify Markets

Chilean table grape exporters should focus on managing export volumes carefully to avoid market oversupply while maximizing profits from high-quality fruit. Exporters must also prioritize diversifying export markets to reduce dependence on any single market, particularly by strengthening existing relationships in the US and expanding into new regions. Additionally, addressing logistical challenges, such as shipping delays and high freight costs, through more efficient supply chain management will be crucial to maintaining strong pricing and competitiveness.

Enhance Early Harvest Strategy and Market Focus

South African grape growers should continue prioritizing early harvests and early-ripening varieties to mitigate risks from late-season rain. Focusing on efficient packing and strong quality control will ensure premium products for stable markets like the US and Canada. To further safeguard against market volatility, growers should also explore diversification into more reliable regions while minimizing exposure to less predictable markets such as China. By leveraging favorable logistics and maintaining consistent innovation, growers can sustain a competitive edge in the global table grape market.

Sources: Tridge, Agraria, Freshplaza, MXfruit, Redagricola, Semanariotiempo, Thecable

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