1. Weekly News

Chile

Chile Leads Southern Hemisphere in Grape Exports

In the 2023/24 season, Chile reinforced its position as the top grape exporter in the Southern Hemisphere, exporting around 528.8 thousand tons. This amounted to more than 64 million boxes, valued at over USD 1 billion. This marked a 7% year-on-year (YoY) rise in volume and a 13% YoY increase in value. Chile's success can be due to the introducing of new grape varieties, such as Sweet Globe, Allison, and Sweet Celebration, which accounted for 62% of its exports. Stable pricing, efficient logistics, and reduced competition from California and Peru, also played a role. A protocol allowing 30% to 40% of Chilean grapes to bypass methyl bromide fumigation in the US has further enhanced Chile's competitiveness. Industry leaders highlight the need for continued promotional efforts to boost global grape consumption.

Italy

Italy's 2024 Grape Harvest Sees Growth but Remains Below Five-Year Average

Italy's grape production is expected to rise by 7% YoY, recovering from last year's downy mildew-affected harvest. Despite this recovery, the figure remains 12.8% lower than the five-year average. Extreme weather, including heavy rainfall in the north and drought in the south, has hindered production. Northern regions saw a slight 0.6% rise, central regions rebounded with 29.1% growth, and southern areas increased by 15.5%. While overall production lags behind historical levels, the grape quality remains good due to the dedication of the supply chain.

Russia

Russian Grape Harvest Forecast to Exceed 800 Thousand Tons in 2024

Despite adverse weather conditions, the Russian Ministry of Agriculture anticipates the 2024 grape harvest to surpass 800 thousand tons. The Deputy Minister of Agriculture acknowledged the challenges but expressed optimism for a successful harvest. By the end of 2024, around 105 thousand hectares (ha) were devoted to vineyards, with plans to add another 6 thousand ha, bringing the total vineyard area to over 107 thousand ha by year-end. This expansion highlights Russia's commitment to boosting grape production.

South Africa

South Africa's Grape Industry Forecasts Strong Production and Exports for 2024/25

The South African Table Grape Industry (SATI) projects a total production of 76.4 million boxes (around 344 thousand tons) for the 2024/25 season, potentially ranging between 74.1 and 78.7 million boxes. Export volumes are expected to rise by 1%, reflecting a 6% increase over the five-year average, helping South Africa meet global demand for high-quality grapes. The primary regions, like the Orange River, are forecasted to slightly increase production, while the Northern Province may see a 3% decline. Favorable weather conditions and focusing on white seedless varieties align with global preferences, ensuring exceptional quality. SATI also enhances logistics through a new forecasting model to maintain grape quality throughout the supply chain.

Turkey

Sultani Seedless Grapes in Turkey Achieve High Export Prices During Winter Harvest

In Manisa's Sarıgöl district, Turkey's renowned Sultani seedless grapes are being preserved under protective covers for winter harvesting, with export prices reaching USD 1.75 per kilogram (TRY 60/kg) in Oct-24. Grape production covers 113 thousand acres in the area, with 90% of the vineyards protected to ensure high-quality grapes remain fresh. Currently, 5 thousand tons of grapes are still on the vines, benefiting from favorable weather. However, as the season ends, producers are advised to sell their grapes quickly to avoid potential losses despite the temptation of higher prices for those who delay.

Ukraine

Ukrainian Winegrowers Struggle with Poor Grape Harvest Due to Extreme Weather

Ukrainian winegrowers are facing a challenging year as extreme heat and dry weather have severely impacted grape harvests, with some vineyards reducing their planted areas. The President of the Ukrainian Fruit and Vegetable Association (UFVA) reports a sharp decline in the quality and quantity of grapes, with some as small as raisins. Despite this, farms with drip irrigation systems have managed to meet their planned yields, selling table grapes at high prices of USD 1.09 to 1.33/kg (UAH 45 to 55/kg). Growers are now focusing on cultivating smaller, profitable areas of high-quality, irrigated grapes, reflecting the scarcity of quality grapes in the market.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W42 2023 to W42 2024)

Peru

In Peru, grape prices dropped by 4% week-on-week (WoW) to USD 0.96/kg in W42, reflecting a substantial decrease of 23.2% month-on-month (MoM) due to the continuation of the peak harvest season, which has resulted in an oversupply in the market. Although domestic demand remains relatively low, softening export demand from primary markets in Europe and Asia has further contributed to the downward pressure on prices. Grape prices decreased by 37.14% YoY compared to last year's exceptionally high prices, driven by limited availability and strong export demand, which has since normalized. Despite this decline, Peruvian grapes benefit from their premium quality, maintaining a favorable market position overall.

South Africa

South Africa's grape prices decreased by 7.46% WoW to USD 3.97/kg in W42, reflecting an 18.31% MoM drop due to increased supply as the 2024/25 season begins. SATI projects production of 76.4 million boxes, with exports expected to rise by 1%. While primary regions like the Orange River are set to increase production, a decline in the Northern Province may offset some growth. The overall supply surge has led to downward pressure on prices as the industry aims to meet global demand for premium grapes.

India

In W42, grape prices in India decreased by 7.46% WoW, reaching USD 0.58/kg. This decline represents a substantial drop of 22.67% MoM and a decrease of 51.67% YoY. This reduction is due to ongoing oversupply in the market, as increased production volumes continue to outpace demand in both domestic and export markets. Unfavorable weather, including heatwaves and storms, has exacerbated the situation, negatively impacting grape quality and reducing consumer interest. Additionally, logistical challenges and heightened competition from alternative fruit varieties have further pressured grape prices, contributing to the substantial decreases observed.

3. Actionable Recommendations

Implement Strategic Market Diversification for Grapes

Grape producers in India should focus on market diversification to address the ongoing oversupply and declining prices. Exploring new export markets and developing value-added products, such as grape juice or dried grapes, can help mitigate the effects of excess supply. Additionally, implementing targeted marketing strategies to promote the unique qualities of Indian grapes can attract consumer interest and drive demand. Producers can stabilize prices and enhance profitability in a competitive landscape by adapting to market conditions and expanding their product offerings.

Urgent Sales Strategy for Sultani Grapes Across Turkey

Producers of Sultani seedless grapes in Turkey should implement an urgent sales strategy to maximize profits from the current harvest before the season concludes. While the market is favorable with rising export prices, the risk of potential losses increases as harvest time wanes. Grape producers nationwide should prioritize swift sales to local and international markets to mitigate this risk. Utilizing targeted marketing efforts and enhancing communication with buyers can facilitate quicker transactions, ensuring quality grapes are sold while prices remain high. This proactive approach will help producers capitalize on current demand and minimize losses as the season ends.

Enhance Quality Assurance Practices in Italian Grape Production

Italian grape producers should prioritize enhancing quality assurance practices to capitalize on the expected increase in production for the upcoming harvest. With weather-related challenges impacting yield consistency, focusing on meticulous quality control at every stage of the supply chain is essential. Producers should implement regular inspections, improve vineyard management techniques, and adopt integrated pest management strategies to protect against environmental stresses. Producers can better position themselves in the market by ensuring high-quality grapes through robust quality assurance measures and take advantage of favorable prices as they recover from last year’s downturn.

Sources: Tridge, Eastfruit, Foodmate, Kvedomosti, Manisakulishaber, MXfruit, Terraevita, UAV, Yna, Foodmate