1. Weekly News

Brazil

Promising Grape Harvest in Brazil’s Rio Grande do Sul Amid Weather and Disease Challenges

Brazil’s Rio Grande do Sul state shows strong grape harvest potential, with healthy vine development in primary regions like Santa Rosa and Passo Fundo. In Santa Rosa, favorable weather and reduced fungal disease pressure positively impacted American grapevines during the budding and reproductive stages, with temporary pauses in phytosanitary treatments supporting crop health. In Passo Fundo, vines are entering the crucial cluster development stage, but humid conditions and dense foliage present disease risks. Farmers are managing these challenges through vigilant pest monitoring and adherence to agronomic practices to ensure a successful harvest.

Chile

Chile Focuses on Quality and Demand as it Begins Table Grape Exports

Chile has launched its table grape exports from the Atacama region under favorable production conditions. It is implementing a new Systems Approach for United States (US) exports that replaces fumigation with origin inspections, providing a competitive advantage. With strong demand in the US and Europe, where supply is low and prices remain high, Chile aims to meet market needs. Over two-thirds of Chile's grapes now have licensed varieties, enhancing their appeal. Industry leaders focus on refining maturity indices, improving post-harvest processes, and aligning production volumes with market expectations to ensure high quality and sustained demand.

India

Weather Challenges Slash Grape Yields and Prices in Theni

Grape farmers in Theni, India, have faced severe challenges due to continuous rainfall and weather fluctuations over two months, causing Muscat Hamburg grape prices to drop from USD 0.73 per kilogram (kg) to USD 0.18/kg. Known for its year-round availability and sweetness, this variety now yields only 1 ton/ha, down from 6 tons. Despite steady production costs of USD 2.4 thousand/ha, farmers struggle to recover losses. Over 300 farmers cultivate the Muscat Hamburg grape variety across 2 thousand hectares (ha) in the Cumbum Valley. Local leaders urge government intervention to set a minimum support price (MSP) and provide compensation. Horticultural authorities recommend crop insurance and preventive measures against fungal infections to mitigate future losses.

Nashik Grapes Begin Early Exports Amid Weather Challenges

India's leading grape-producing region, Nashik has started exporting early-season grapes to Russia, Malaysia, and the United Arab Emirates (UAE) despite weather-related challenges. In just over a month, 109 containers, totaling 1.7 thousand metric tons (mt), were shipped, primarily from Satana and Deola talukas. Although prolonged rainfall delayed the harvest and complicated fruit maturation, Russia received more than 60 containers of early exports. Despite higher shipping costs and reduced service frequency due to the ongoing Russia-Ukraine conflict, the farmers' protective agriculture techniques managed to sustain their exports, demonstrating Nashik's resilience as a key global grape supplier.

South Africa

EU MRL Adjustments Pose Challenges for South Africa's Table Grape Industry

South Africa's table grape industry faces significant challenges due to the European Union’s (EU) proposed changes to maximum residue levels (MRLs) under the Green Deal initiative. These adjustments could result in a 15% decline in export-quality yields in high-disease regions and a 5% reduction in the Orange River area, mainly due to restrictions on key fungicides like Dimethomorph. The total cultivation area may shrink by 12% over the next decade, and profitability could decrease by 50% as production costs rise. With 90% of South Africa's table grapes exported and over half going to the EU, a shift to alternative markets may lead to a 9% price increase in the EU but a sharp 38% price drop in non-EU markets. The Bureau for Food and Agricultural Policy (BFAP) is exploring strategies to adapt to these regulatory changes.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W49 2023 to W49 2024)

Chile

In Chile, grape prices dropped by 7.46% week-on-week (WoW) to USD 2.11/kg in W49 due to increased supply as the country ramps up its table grape export season. The market faced downward pressure from the growing volume of grapes entering the market. Chile contributed significantly to global supply following the early end of availability from European, Californian, and Northern Peruvian sources. However, a 9.33% month-on-month (MoM) price increase as Chile's late-season grapes are expected to enter the market by Feb-24, price adjustments are anticipated as producers work to align supply with shifting demand.

Peru

Peru's grape prices declined by 7.61% WoW to USD 0.85/kg in W49, with a 10.53% MoM drop, reflecting a post-harvest market adjustment as supply levels normalized following the peak harvest period. The seasonal reduction in domestic demand contributed to the downward price movement, but steady export demand, particularly from the US and Europe, helped mitigate more significant declines. Despite the short-term price decrease, there is a 32.81% YoY increase due to continued growth in Peru's grape production and strong export performance, especially to key markets in North America and Europe. Despite logistical challenges in regions like Ica and La Libertad, the country's ability to maintain export volumes further supported the YoY price increase.

South Africa

Grape prices in South Africa dropped slightly by 4.6% WoW to USD 1.66/kg in W49, with a significant drop of 57.22% MoM due to the continued effects of the peak harvest season, which has kept supply levels high despite earlier weather disruptions. Compounded by delayed harvesting, the elevated supply resulted in sustained downward pressure on prices. Additionally, competition from other grape-producing regions, such as Chile, and an oversupply in export markets have further contributed to the sharp price decline. The industry continues to grapple with challenges such as shifting market dynamics and potential regulatory changes, adding uncertainty to future pricing trends.

3. Actionable Recommendations

Mitigate Losses with Insurance and Preventive Measures

Grape farmers in Theni should adopt crop insurance policies that specifically cover weather-related losses, including damages from heavy rainfall, fluctuations in temperature, and other climatic extremes. These policies can help mitigate the financial impact of fluctuating prices and unpredictable yields by providing compensation when crops are damaged or destroyed. Additionally, farmers should implement preventive measures such as fungal disease management and invest in more resilient farming techniques to protect future harvests. Farmers can stabilize their income and reduce vulnerability to environmental factors by integrating crop insurance and improved agricultural practices.

Adapt to Regulatory Changes with Strategic Adjustments

South Africa's table grape producers must focus on diversifying their markets to mitigate the potential impact of the EU's proposed changes to maximum residue levels (MRLs) and the resulting decline in export yields. Producers should also invest in research and development to identify and adopt alternative, effective fungicides that comply with new regulations. Additionally, they should optimize production techniques to maintain quality despite the increased cost of production. Strengthening relationships with non-EU markets while ensuring compliance with new standards will help sustain profitability and reduce dependence on the EU market.

Enhance Grape Harvest Management for Optimal Results

Farmers in Rio Grande do Sul’s Santa Rosa and Passo Fundo regions must prioritize integrated pest management (IPM) and maintain strict monitoring of agronomic practices to protect vine health and improve yields. To achieve this, farmers should implement a combination of biological, cultural, and mechanical controls, such as using beneficial insects and crop rotation, alongside chemical treatments when necessary. In Passo Fundo, where humid conditions increase disease risks, farmers should enhance air circulation around dense foliage and monitor weather conditions closely to adjust disease prevention measures. Regular inspections, early detection of pests and diseases, and the use of resistant grape varieties are essential for maintaining vine health. By adopting IPM strategies and monitoring agronomic practices, farmers will not only reduce pest damage but also promote long-term sustainability and optimize the grape harvest.

Sources: Tridge, Eastfruit, Free Press Journal, Freight news, Freshplaza, MXfruit, Portal Do Agronegocio, Producereport, The Indian Express, USDA