1. Weekly News

Australia

Australian Green Grape Supply Tightens in Vietnamese Market During W18 Amid Price Surges

Australian green grapes' availability decreased during early May-24 in the Vietnamese market, coinciding with a rise in market demand. As May-24 progresses, fewer importers have stock of Australian green grapes, leading to a tightening supply. Consequently, some importers with remaining inventory have increased prices. The current rates for Australian green grapes are between USD 70/8.5-kilogram carton to USD 78/8.5kg carton in W18, significantly higher than the previous range of USD 58/8.5kg carton to USD 60/8.5kg carton. Despite the higher prices, many wholesalers accept them due to the consistently high demand for green grapes, making them a top-selling variety.

Chile

Chilean Table Grape Exports Set to Reach 62 Million Boxes in 2023/24 Season

In the 2023/24 season, Chilean table grape exports are projected to reach 62 million boxes (8.2 kg/box), slightly up from the previous season's 60.5 million boxes (8.2kg/box). Notably, about 65% of this season's total production, equivalent to 40 million boxes, is expected to be sent to North America due to increased demand in the United States (US). As of W15, Chilean table grape exports already reached 55.72 million boxes (8.2kg/box). In the Chinese market, Chilean grapes, renowned for their quality and variety updates, have gained popularity among consumers, especially with non-traditional varieties like Sweet Globe, Allison, Timco, and Autumn Crisp, known for their crisp texture and sweet taste. Frutas de Chile has actively promoted Chilean grapes in China through various strategies, including in-store advertising and online campaigns, to enhance the market image of Chilean grapes.

Chilean Fruit Exporters Advance Systems Approach for Shipping Grapes to the US

The Fruit Exporters Association of Chile is making significant strides toward publishing the Systems Approach for shipping table grapes to the US without fumigation. This progress includes the phytosanitary facility establishment on the premises in Copiapo. The association recently met with table grape producers, exporters, and local representatives to discuss these developments. The visit also involved tours of agricultural facilities to observe packing operations, explore new grape varieties, and learn about salt management and water efficiency practices. Once operational, the facility will enable compliance with inspection protocols and facilitate exports of table grapes from northern Chile to the US under the Systems Approach.

Peru

Peruvian Grape Exports to Japan Surged in 2023

According to the Ministry of Foreign Trade and Tourism (Mincetur), Peruvian fruit exports to Japan hit a record high of approximately USD 68 million by the end of 2023. This was due to the introduction of fresh Peruvian grapes to Japan and the rising sales of avocados, including fresh and frozen varieties. Peru exported 2.2 thousand metric tons (mt) of grapes to Japan in 2023, totaling USD 8 million. This achievement was made possible by surpassing health requirements in Japan. Notably, Peruvian grapes benefit from tariff-free access to Japan under the Economic Partnership Agreement between Peru and Japan and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Peru held a 5% share of Japan's total grape imports by the end of 2023, with Chile, the US, and Australia being its top suppliers. However, on Jan-24, Peru's share as a grape exporter to Japan surged to 43%, while Chile accounted for 57%, making them the sole exporter of grapes to Japan.

United States

US Table Grape Sector Anticipates Recovery in 2024 After Hurricane-Related Losses

After a challenging 2023 season, the US table grapesector anticipates favorable weather conditions for the upcoming campaign starting on May-24. Hurricane Hilary, which struck California on Aug-23, significantly impacted table grape volumes, resulting in losses of 25 million boxes, equivalent to 35% of total production. Initial production estimates for 2024 stood at a minimum of 90 million boxes, contrasting with projections of 72 million boxes post-Hurricane Hilary. According to the California Table Grape Commission, the last time the crop fell below 75 million boxes was in 1994. Moreover, Mexico, currently in season, expects to export 24 million boxes to the US. However, the Jalisco region, a growing player between Chile's late campaign and California's early campaign, has yet to release official production estimates. Sonora remains Mexico's primary table grape producer, with importers estimating between 22 and 24 million boxes for the US market. In the previous season, delays in Sonoran grape supplies entering the market due to weather complications caused disruptions in the US supply chain throughout 2023 and 2024.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W18 2023 to W18 2024)

Chile

Chilean Thompson Seedless price increased 13.83% week-on-week (WoW) while MoM price slightly rose 0.11% MoM, reaching USD 1.07/kg. However, the YoY price slightly declined. This is due to strong US demand for table grapes from Chile, and exporters are shipping as much fruit as available despite the delay in the harvest in the central areas of the South American country.

Peru

Peru's grape prices remained unchanged in W18, at USD 0.85/kg. However, grapes experienced a 23.02% YoY price decrease due to the effects of 2023's El Niño weather phenomenon, which has led to challenges in the season due to extreme weather conditions such as heavy rains in early 2023 and droughts in the Southern regions.

South Africa

South African white seedless grapes price increased significantly by 14% WoW, reaching USD 2.95/kg, with a slight MoM rise of 0.82%. This surge is due to the South African grape season ending two weeks earlier than in 2023, at the end of Mar-24.

India

The price of grapes in India decreased to USD 0.64/kg, marking a 25.58% WoW. This decrease can be attributed to abundant grape volumes, compounded by an exceptional Indian grape season despite challenges like sudden rainfall and hailstorms. Furthermore, the export season in Nashik saw a significant increase in shipments despite shipping delays caused by hurdles like the Suez Canal blockage and weather challenges, which raised concerns about profitability and quality. However, prominent exporters noted satisfactory export volumes and quality, indicating a positive outlook despite challenges, highlighting the industry's adaptability and growth.

3. Other Outstanding Price Anomalies

Brazilian Grape Prices Surged 80.02% YoY in Apr-24 Amid Supply Shortage

As of April 24th, the wholesale price of fresh grapes in Brazil peaked at USD 3.29/kg for the 2023/24 season, marking a significant 80.02% YoY increase from Apr-23's price of USD 1.83/kg. There was also a slight month-on-month increase from Mar-23's price of USD 3.27/kg. Grape prices have been rising since Sept-23 when they were at USD 2.12/kg.

This price increase is due to a shortage in the grape market in Brazil, which has contributed to a global shortage of red grapes. Much of the current supply is from Namibia due to challenges faced by major suppliers like South Africa, particularly issues with grape coloration. Importers anticipate a continued demand for red grapes in the foreseeable future.

4. Actionable Recommendations

Diversify Sourcing Channels

Given the tightening supply of Australian green grapes in the Vietnamese market and the resultant price surges, it's imperative for importers and wholesalers to diversify their sourcing channels. Exploring alternative grape suppliers, such as those from Chile, Peru, or South Africa, can provide a buffer against supply shortages and price fluctuations. Establishing relationships with multiple suppliers ensures a more resilient and adaptable supply chain, reducing dependency on any single source and mitigating the impact of localized disruptions or market dynamics. By diversifying sourcing channels, stakeholders can maintain consistent availability of green grapes and minimize the risk of market volatility affecting pricing.

Strengthen Market Presence Through Promotional Campaigns

To capitalize on the increasing popularity of Chilean table grapes, particularly in markets like North America and China, stakeholders should prioritize strengthening their market presence through targeted promotional campaigns. Collaborating with industry associations and trade partners, can amplify promotional efforts and enhance brand visibility in key consumer segments. Leveraging digital marketing channels, in-store promotions, and consumer engagement initiatives can effectively communicate the unique attributes and quality of Chilean grapes, driving consumer demand and preference. By investing in strategic marketing initiatives, stakeholders can position Chilean table grapes as a preferred choice among consumers and gain a competitive edge in target markets.

Collaborate for Regulatory Compliance and Market Access

Given the advancements in Chilean fruit exporters' Systems Approach for shipping grapes to the US without fumigation, stakeholders should prioritize collaboration for regulatory compliance and market access. Engaging with industry associations, government agencies, and regulatory bodies can facilitate knowledge-sharing, capacity-building, and alignment with phytosanitary requirements and protocols. Participating in training programs, workshops, and certification initiatives can enhance stakeholders' understanding of regulatory standards and ensure adherence to established protocols for grape exports. By collaborating for regulatory compliance and market access, stakeholders can streamline export processes, mitigate trade barriers, and capitalize on opportunities in key export markets like the US.