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W20: Grape Update

Updated May 25, 2023
W20: Grape Update

In W20 in the grape landscape, it was reported that the Chilean grape season is expected to end strong Chile has finished the season two or three weeks earlier than usual due to heat waves in the Central-South valleys, resulting in a decrease in the production volume of 18-20% and a decrease in shipments to the United States. Also, Chile is a primary exporter of grapes during the Northern hemisphere winter, with 60M boxes shipped to North America. Further, the FAS Santiago estimates that the table grape production in Chile will decrease by 8.6% in MY 2022/23, reaching 720KT. Also, the exports of table grapes will decline by 8.7%, totaling 555KT. According to the data from ODEPA, it shows a decrease in the area planted from all table grape production regions. The competition from Peru in the U.S. market, high production costs, and the need to update table grape varieties have put downward pressure on exporters.

The early indications of the upcoming grape season in California show that it is running behind the usual schedule. Pandol Brothers Inc. is seeing increased volumes on three of their new varieties, the Sugar Crunch, the green seedless and red seedless Sweet Globe, and the late-season Allison. The Californian season will follow the Mexican one, which is about to start and is also about ten days late. Since this grape season should extend until December 2023, it's important to know the weather changes towards the end of June will have an effect on the transition. To reach a particular level of sustainable pricing in the following two years, Pandol Brothers Inc. is asking for retailers' assistance with pricing in 2023. In addition, Four Star Fruit, a leading grower of organic and conventional table grapes, recently acquired a 1.1Kac vineyard and two modern distribution facilities near Bakersfield, California, to expand operations and meet the growing demand for table grapes. Agrícola Chapi, a Peruvian agricultural export company, has received USD 130M in funding to expand its table-grape and avocado production. It is part of a growth plan drawn up with Cordiant Capital in 2022. Further, Eden Research PLC has gained regulatory approval for its Novellus biofungicide in New Zealand, which is an important market due to its grape production and climatic conditions.

On the other hand, the table grape harvest in Morocco is expected by the end of May 2023 and will be impacted by climate issues. Experts predict that the harvest will differ from region to region due to the unusually warm spring season. Morocco produces 450KT of grapes, 75% is for raw consumption and 21% for wine production. King Mohammed VI has instructed the government to increase the current budget allocated to the country's national program for drinking water supply and irrigation to USD 14.3B.

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