1. Weekly News

Afghanistan

Kandahar Exports Boost Afghan Grape Market Despite Operational Challenges

Kandahar, Afghanistan, has exported around 23 thousand tons of grapes and 7 thousand tons of figs, primarily to India and Pakistan, generating an estimated USD 36 million in revenue in 2024. Afghan investors face significant hurdles despite this success, including limited storage facilities, heightened tariffs, and restricted financial transactions. Recent tariff increases by Pakistan on Afghan exports have intensified these challenges, impacting Afghan traders’ ability to maximize profits and maintain smooth trade operations.

Chile

Chilean Table Grape Exports Forecast to Rise in 2024/25 Season

For the 2024/25 season, Chile's Fruit Table Grape Committee anticipates a 2.4% year-on-year (YoY) increase in table grape exports, aiming for approximately 66 million boxes. This growth primarily stems from the rising popularity of new grape varieties, which are expected to comprise 65% of total shipments. The United States (US) remains the primary market, accounting for nearly 60% of Chile's grape exports, followed by Asia and Europe. This season's notable development allows Chilean grapes from specific regions to be exported to the US without fumigation under the Systems Approach protocol, enhancing quality and creating new opportunities for Chilean producers.

Egypt

Egypt's Grape Exports to the EU Reach Record Levels in 2024

In 2024, Egypt achieved record grape exports to the European Union (EU), with projections reaching 75 thousand tons by year-end, surpassing last year's 70 thousand tons. The Netherlands and Germany remain the leading importers, collectively accounting for 75% of Egypt's grape exports, reflecting 14% and 16% YoY increases, respectively. Ireland has notably doubled its purchases, improving its ranking among Egyptian grape importers, while Italy experienced a slight decline. Egypt capitalizes on its seasonal advantage as the primary supplier of fresh grapes to the EU in June and July. Despite competition from local produce during the summer, Egypt remains the fifth-largest fresh grape exporter to the EU, following South Africa, Peru, India, and Chile, demonstrating strong export growth alongside Peru and Moldova.

Europe

European Grape Market Faces Shortage as High Prices Surge Due to Heatwaves

In 2024, the European grape market is grappling with a significant shortage caused by heat waves in major producing countries such as Italy, Spain, and Greece, resulting in lower yields. As local supplies dwindled, the first shipments of imported grapes from Brazil and Peru arrived; however, prices remained exceptionally high, with white grapes selling for USD 20.55 to 22.72 per kilogram (EUR 19 to 21/kg). In comparison, Brazil's season is on schedule, but limited supply and elevated costs impact sales. Peru's harvest is expected to improve, yielding more than last year's weather-impacted production. Additionally, supplies from Namibia and South Africa are delayed, and with limited European availability anticipated through November, prices are unlikely to decrease until at least December.

India

India's Grape Season Faces Early Weather Challenges Driving Prices Higher

India's grape season faces early challenges due to extreme weather, including a summer heatwave and heavy rainfall, which negatively impact grape quality and yield. Early-harvest grapes are limited, with issues like mold and skin cracking causing high demand and surging prices. Additionally, logistical issues such as rising shipping costs and container shortages, especially for European exports, exacerbate these challenges. Despite these difficulties, exporters remain cautiously optimistic as more plots prepare for harvest and weather conditions stabilize. They anticipate that increased supply will ease market prices and fulfill domestic and international demand later in the season.

Spain

Spain's Agricultural Industry Urges Action During Vineyard Crisis in 2024

In 2024, Spain's agricultural industry reacted alarmingly to the Ministry of Agriculture's decision to reject state aid for uprooting vineyards, a measure advocated by Confederación Nacional de Asociaciones de Organizaciones de Agricultores y Ganaderos (COAG) and other organizations to address the global wine market crisis. With over 95 thousand hectares (ha) at risk of abandonment, agricultural groups stress that a controlled reduction in productive capacity is crucial for balancing supply and demand. They propose a phased approach that includes financial aid for selective uprooting, allowing for temporary non-production periods and future replanting to help growers adapt to evolving market demands. To stabilize vineyard expansion while reassessing market needs, COAG advocates for a temporary suspension of new planting authorizations across Europe.

South Africa

South Africa Anticipates Modest Increase in Table Grape Harvest for 2024/25 Season

For the 2024/25 season, South Africa anticipates a slight increase in its table grape harvest, projecting 343.8 thousand tons (76.4 million boxes of 4.5 kg), which marks a 0.82% YoY rise. This South African Table Grape Industry (SATI) forecast reflects a 6% increase over the five-year average, highlighting the country's ability to meet global demand with high-quality produce. While northern provinces expect a 3% YoY decrease in yield due to an 8% YoY reduction in planted area, regions such as Berg and Hex River are set to maintain stable outputs. Favorable winter temperatures and improved reservoir levels contribute to a promising season, with a growing focus on white seedless varieties to cater to market preferences. SATI's predictive logistics model also aims to enhance supply chain efficiency, bolstering South Africa's position as a leading supplier of grapes in international markets.

Turkey

Sultani Seedless Grape Prices Surge in Sarıgöl as Vineyard Covers Extend Selling Season

In Oct-24, the price of Sultani seedless grapes from Sarıgöl, Manisa, surged to USD 2.04/kg (TRY 70/kg), driven by favorable weather conditions that improved grape quality and yields, as well as the protective benefits of vineyard covers that reduced crop losses. These factors created a more favorable pricing environment, increasing demand and market prices. According to the Sarıgöl Chamber of Agriculture, 90% of the district's 113 thousand-decare vineyard area remains covered, particularly in neighborhoods like Emcelli, Baharlar, Bahadırlar, Yukarıkocaklar, and Yeşiltepe, allowing growers to extend the selling season. The Chamber advises producers to finalize their sales before the season ends to take advantage of the high prices and prevent potential financial losses.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W43 2023 to W43 2024)

Peru

In Peru, grape prices dropped slightly by 1.04% week-on-week (WoW) to USD 0.95/kg in W43, reflecting a 17.39% month-on-month (MoM) decrease due to the ongoing peak harvest season, leading to ample supply in the domestic market. Additionally, continued softening in export demand from key European and Asian markets has kept prices under downward pressure. However, YoY prices surged by 53.23% due to last year’s notably low supply and intense export demand, which had previously driven prices to high levels. This year, Peruvian grapes remain valued for their premium quality, sustaining a competitive edge despite current market fluctuations.

South Africa

Grape prices in South Africa declined by 0.25% WoW to USD 3.96/kg in W43. This decline corresponds to an 18.52% MoM decrease due to a slightly higher harvest forecast for the 2024/25 season, expected to reach 343.8 thousand tons. This anticipated increase in grape production, though modest at 0.82% YoY, has eased supply pressures and led to price stabilization. Contributing factors include favorable winter conditions and improved reservoir levels, particularly in regions like Berg and Hex River, where stable production levels are expected. Additionally, SATI’s focus on enhancing supply chain efficiency through predictive logistics is helping to streamline distribution and reduce cost pressures, resulting in lower prices for buyers.

India

India's grape prices rose sharply by 131.03% WoW to USD 1.34/kg in W43, marking a 109.38% MoM and 32.67% YoY increase. This rise is primarily due to early-season weather extremes, including intense heat and heavy rainfall, which have constrained grape yields and quality. The limited availability of early-harvest grapes, affected by mold and skin cracking, and high demand have put further pressure on prices. Additional logistical challenges, such as rising export costs and container shortages, particularly impacting shipments to Europe, have compounded supply constraints, intensifying the price hike. Nonetheless, as more harvests approach, exporters expect supply increases that could help balance prices if stable weather conditions persist.

3. Actionable Recommendations

Enhance Quality Control and Logistics for Grapes

Exporters in India should implement enhanced quality control measures to mitigate the effects of extreme weather on grape quality and yield. This includes conducting thorough inspections to promptly identify and address issues like mold and skin cracking. Additionally, exporters should collaborate with logistics partners to optimize shipping routes and manage costs effectively, ensuring timely delivery to European markets. By proactively addressing quality and logistical challenges, exporters can better position themselves to meet domestic and international demand as the season progresses.

Diversify Supply Sources for European Grapes

Grape importers in Europe should diversify their supply sources to mitigate the effects of the current grape shortage. With significant yield reductions in Italy, Spain, and Greece due to heat waves, it's crucial to establish robust relationships with suppliers in Brazil, Peru, Namibia, and South Africa. Importers should prioritize contracts with these countries to secure consistent supply, especially as Peruvian production is expected to improve. This proactive approach will help stabilize prices and ensure adequate availability in the market, primarily through the end of the year.

Capitalize on High Sultani Seedless Grape Prices

Sultani seedless grape producers in Sarıgöl, Manisa, should prioritize finalizing their sales before the season concludes to take full advantage of the current high prices. With favorable weather conditions and protective vineyard covers contributing to improved quality and extended selling seasons, growers are now encouraged to market their grapes strategically. By acting promptly, producers can maximize their profits and mitigate potential financial losses as market conditions may shift as the season ends.

Sources: Tridge, Agraria, AMU, Eastfruit, Freshplaza, Iha, InfoAgro, MXfruit, Portaldelcampo, Simfruit