W37: Grape Update

In W37 in the grape landscape, in Brazil, the 2023/24 grape harvest season in Rio Grande do Sul is just beginning, and the vineyards are currently in the budding phase. However, there are concerns about the weather conditions as the region has seen a shortage of cold hours and frosts, worrying grape growers. In W36, a cyclone hit the area, causing minimal damage to the grape vines but affecting the burgundy grape, which had already started to sprout due to the lack of cold weather in Jul-23 and Aug-23. Additionally, the presence of El Niño is expected to bring above-average rainfall to the southern region of Brazil. This could potentially harm productivity, especially during the sensitive stages of flowering and fruit setting in the grapevines. These weather-related factors are being closely monitored as they can significantly influence the outcome of the grape harvest in Rio Grande do Sul.

Chilean table grape exports are expected to reach 67.1 million boxes in the 2022/23 season, with a potential drop of 9.7%. However, the actual decline in Chilean grape production is even higher, reaching 60.5 million boxes, an 18% year-over-year (YoY) decrease. The Chilean Grape Committee's coordinator emphasized the need to address the impact of Peruvian exporters on the market. Peruvian Table Grape Production Association (Provid) reported that Peruvian grape exports reached 71.4 million boxes in the 2022/23 season, a 10% increase from the previous season. Meanwhile, the grape planting area in Peru increased by 5% to 22.1 thousand hectares (ha).

Chilean exporters are improving their market competitiveness by increasing the export scale of new grape varieties. In the 2022/23 season, 33.3 million boxes of new grape varieties were exported, accounting for 1% of total grape exports. The ultimate goal is to increase the export of new grape varieties to 70%. ASOEX is also collaborating with Provid to promote Chilean and Peruvian grapes to the United States (US), which currently accounts for 49% of total Chilean grape exports.

Moreover, Peru exported a total of 1.2 thousand tons of table grapes during W35. 57% of Peruvian grapes were exported to the US, while 10% went to Colombia, and 7% were shipped to the Dominican Republic. Peruvian grapes exports are showing positive growth, and for the 2023/24 campaign, the country is expected to export approximately 72.8 million boxes of grapes. This represents a 2% increase compared to the previous campaign. Peruvian grape shipments were handled through the ports of Callao and Paita. Furthermore, due to an early harvest in California and the impact of Cyclone Hillary, which resulted in a loss of 25 million boxes, Peruvian grape exporters are anticipating a strong start to the season. This presents an opportunity for increased exports and market share.

Lastly, Japan has approved the first shipment of 16.4 tons of Peruvian table grapes, averaging 16.4 thousand kilograms (kg) from Piura City. The grapes shipment complied with phytosanitary protocols and will benefit the Peruvian agricultural sector, which has over 125 million consumers. The Peruvian table grape has access to 53 global markets and maintains negotiations with other countries to expand its commercial presence. This positive impact will allow Peru to continue its position as the first agro-exporter of grapes globally.