1. Weekly News

Argentina

Argentina's 2024/25 Table Grape Harvest Started with Strong Exports to Brazil and Russia

The 2024/25 table grape harvest has started in San Juan, Argentina, with early varieties like Superior and Cardinal Seedless being exported mainly to Brazil and Russia. San Juan, which accounts for over 80% of Argentina's fresh grape exports, shipped its first 24 pallets (2.44 thousand boxes) to Brazil for the holiday season. In 2023, the region's grape exports totaled USD 1.24 million Free on Board (FOB) and 1.87 million kilograms (kg), with Brazil and Russia as the primary markets. By Oct-24, exports surged to USD 1.03 million FOB and 905.6 thousand kg, marking a 187% year-on-year (YoY) increase in value and an 84% YoY rise in volume. This growth is supported by strong cooperation between local producers, exporters, and regulatory bodies like the National Service of Agrifood Health and Quality (SENASA), ensuring compliance with international phytosanitary standards.

India

India's Grape Demand Soars on New Year's Eve Due to Spanish Tradition

India's grape demand surged on New Year's Eve due to the popular Spanish tradition of eating 12 lucky grapes at midnight to bring good luck for the coming year. Quick commerce platforms like Blinkit and Swiggy Instamart reported that grapes are one of the most ordered and searched items, with deliveries increasing notably. Originating in 19th-century Spain and linked to surplus harvests in Alicante, the tradition has gained international popularity through social media, further increasing grape consumption during the festive season.

Mexico

Soaring Grape Prices in Mexico Due to Winter Supply Shortages

Grape prices in Mexico reached unprecedented levels, peaking at USD 9.71/kg (MXN 200/kg) during the winter and year-end seasons due to high demand for traditional rituals and limited domestic production. According to the National Institute of Statistics and Geography (INEGI), average prices in Aguascalientes, where all winter grapes are imported, stood at USD 4.76/kg (MXN 98.1/kg). The lack of technological greenhouses intensifies supply challenges and has sparked discussions about investing in greenhouse technology to enable year-round production and reduce import dependency.

South Africa

South African Table Grapes Shine in European and UK Markets During Holiday Season

South African table grapes made a strong entry into European and the United Kingdom (UK) markets during the Christmas and New Year period, driven by early shipments from the Hex River Valley. Varieties like Starlight and Arra 29 have already been harvested, with Crimson expected soon. Early arrivals, including airfreight shipments, met pre-Christmas demand in markets that initially faced limited supply. Despite higher airfreight costs, the quality of the arrivals ensured steady sales. South African growers are collaborating with Orange River producers to supply the latter half of the season, maintaining strong export performance. While prices are expected to stabilize, market demand, particularly in Europe, remains strong.

Spain

Valencia's Grape Industry Faces Historic Losses Due to Drought and Import Challenges

In 2024, Valencia's grape production, including Moscatel table grapes, fell to historic lows due to severe drought and the impact of Isolated Upper-Level Depression (DANA). This resulted in over USD 1.44 billion (EUR 1.4 billion) in losses across the region's agricultural industry. Rising production costs, competition from non-reciprocal imports, and the presence of imported pests and prohibited substances in foreign grapes worsened the crisis. Despite having an allocation of USD 17.5 million (EUR 17 million) for relief efforts and additional compensation, recovery remains slow. Farmers and organizations like LA UNIÓ continue to push for stronger protections, reciprocity in trade agreements, and measures to support the struggling grape industry.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W1 2024 to W1 2025)

Chile

Grape prices in Chile dropped by 30.46% week-on-week (WoW) to USD 1.05/kg in W1, with a 31.82% month-on-month (MoM) decline due to the seasonal transition from the off-season to the start of the new harvest, which led to lower supply levels. This decrease is also due to the typical post-holiday dip in demand. However, there is a 22.09% YoY increase in grape prices, driven by stronger international demand, especially in markets like the US, where there are supply shortages from California. Additionally, introducing the Systems Approach for exports contributes to this price increase. Another factor is the growing competitiveness of Chilean grapes in international markets, especially in the United States (US), due to supply shortages in California.

Peru

In Peru, grape prices increased by 9.41% WoW and MoM to USD 0.93/kg in W1, reflecting a 22.37% YoY increase. This price rise is due to improved production quality driven by favorable weather conditions, which enhanced the overall fruit quality, leading to stronger demand. While better weather contributed to higher yields and led to potential price reductions due to increased availability, the price increase is primarily due to the improved quality of the grapes, which has enhanced their market value. The southern regions of Peru, which contribute significantly to exports, are expected to see a volume recovery for the 2024/25 season, and this higher-quality produce is likely to command premium pricing.

South Africa

South Africa's grape prices fell by 15.15% WoW to USD 1.68/kg in W1, marking a 23.29% YoY drop due to the seasonal transition from the peak harvest period from December to February, which typically leads to an increase in supply and downward pressure on prices. However, there is a 16.67% MoM increase due to the strong demand from primary export markets, particularly following the re-opening of Thailand's market to South African grapes. This demand, the recovery of the grape sector, and ongoing investments in production and packaging have helped stabilize prices in the short term despite the seasonal price dip.

3. Actionable Recommendations

Strengthen Export Channels by Targeting Early Harvest Varieties

Exporters in San Juan, Argentina, should enhance export strategies by strengthening partnerships with buyers in key markets like Brazil and Russia, prioritizing early-harvest varieties such as Superior and Cardinal Seedless. Collaborating more closely with local producers to meet international phytosanitary standards and optimizing logistical operations will ensure consistent delivery for holiday season demand and capitalize on the growth potential of table grape exports.

Focus on Resilience and Pest Management in Grape Farming

Farmers in Valencia should prioritize resilience-building measures, such as investing in drought-resistant grape varieties and improving water management systems to reduce vulnerability to future climate challenges. They should also implement enhanced pest control protocols to address the presence of imported pests and prohibited substances. Strengthening cooperation among local organizations and exporters to advocate for better trade protections and fair competition will also be crucial in mitigating the ongoing struggles within the grape industry.

Invest in Greenhouse Technology for Stable Grape Supply

Producers should invest in greenhouse technology, such as climate-controlled greenhouses, hydroponic systems, and automated irrigation systems, to enable year-round grape production and address the high prices and supply challenges in Mexico. These technologies can help reduce import dependency and stabilize prices. Climate-controlled greenhouses maintain optimal temperature and humidity for grapes, while hydroponic systems can improve water usage and nutrient management. Automated irrigation systems also help optimize water consumption, especially in regions facing water scarcity, ensuring a more consistent and efficient grape supply. Producers in regions like Aguascalientes can better meet growing demand and improve production efficiency by adopting these modern technologies.

Sources: Tridge, Binoticias, Bizz Buzz, Diariodecuyo, Foreign Trade Directorate, Freshplaza, Fruittoday, Grape Alliance Marketing, Lavanguardia, The Republic