Gloomy End to America’s 2021 Grape Season

Published 2021년 12월 2일

Grape exports from the U.S. fell by 6% in the first 9 months of 2021 in comparison to the previous year. Difficult agro-climatic conditions in the main grape-producing region of California triggered the limited exports due to the limited quantity available for exports and the quality of the grapes not being at par with the international standards. The producers were not willing to store the grapes in warehouses due to the low quality and shorter shelf life. This year turned out to be gloomy for grapes and other commodities like wheat, citrus fruits, and nuts which were produced in the California region.

Since the beginning of 2021, California has experienced adverse weather conditions which impacted the production volumes adversely. The region witnessed extreme heat in the first half of the year followed by a lack of water in some areas resulting in a drought-like condition across grape-producing areas. Just as the season was coming to an end in November, unexpected winter rainstorms hit the grape-producing regions of Northern California which resulted in a loss of harvest.

The US is one of the fastest-growing grape exporting countries which shows a 9.7% share in global trade exports during 2020. However, in 2021, the production was severely impacted by the weather conditions resulting in lower yields and quality of the grapes harvested. The exports during the first 9 months of 2021 stood at 235.98 thousand metric tons, 6% less than the previous season. The export volume was the lowest volume recorded in the past five years and it is not expected to improve in the remaining months of 2021.

Source: ITC TradeMap. HS Code: 0806 Grapes, fresh or dried.

As grape export volumes fell, it is expected that more grapes will be stocked in cold storage by the end of the season 2021. The number of California table grapes in cold storage on the West Coast remained lower compared to this time in 2020. There were almost two million fewer cartons being held - around 10.5 million cartons as of 15th November, which is 16% less than the volume during the same date in 2020.

As the 2021 U.S. grape season is almost over, there are only a few weeks left is to catch up on the export volume in the coming season. The country struggled with unfavorable climatic conditions throughout 2021 which severely impacted the production ability of the country and impacted the trade dynamics. Other than grapes, the climatic conditions also negatively impacted the production of wheat, citrus fruits, and nuts in California resulting in increased cost of production and prices in the domestic markets.