Weekly Product Updates

W2 Grape Update: Peruvian Grape Exports Dip in 2024, Chile Eyes US Market as the US Shifts to Imports, and Global Grape Trade Encounters Controversy

Fresh Grape
Russia
Published Jan 19, 2024
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Peruvian Fresh Grape Shipments Decline in Jan-24, Despite Overall Seasonal Lead

In the first week of Jan-24, Peruvian fresh grape shipments declined, reaching 32.63 thousand metric tons (mt), a significant 33% drop from the same period last year. Despite this, the overall campaign has shipped 443 thousand mt, maintaining a 12% year-on-year (YoY) lead over the 2023 season. The United States (US) remains the primary destination, constituting 55% of total shipments, followed by China at 14% and Mexico at 9%.

Chile Has Initiated a Sustainable Pilot Program for Table Grape Exports to US and Brazil

The Chilean grape industry has initiated a pilot program for Coquimbo table grape exports to Mexico, implementing the system's approach for increased sustainability. The program aims to use methyl bromide to replace the previous fumigation chemical used, introducing independent measures such as producer registration, phytosanitary management, field inspections, and official inspections. Exclusive to the Coquimbo region, the three-month pilot plan aims to demonstrate the viability and effectiveness of the systems approach, which could potentially be expanded to other regions. Participants expressed enthusiasm, seeing it as a significant opportunity for sustainable processes and resolving issues faced by grape exports, especially to the US and Brazil.

Krasnodar Region in Russia Aims for Grape Self-Sufficiency with New Nursery Plans

A key player in Russia's wine production, the Krasnodar region aims to meet its grape seedling demand by producing 7.5 million seedlings annually by 2026. Vice Governor Andrei Korobka revealed plans for a new nursery, projecting to generate 5 million seedlings this year. The region has achieved self-sufficiency in fruit tree seedlings, cultivating 7 million per year. In 2024, they aim to plant 1.8 thousand hectares (ha) of vineyards and 1.2 thousand ha of young orchards. The governor of Kransnodar has emphasized import substitution as a strategic priority, targeting complete self-sufficiency in seed production while supporting the agro-industrial complex.

The US is Focusing on Grape Imports as Local Harvest Concludes

As the US local grape harvest has ended, the focus has shifted to imports from Peru, Chile, Brazil, and South Africa. Despite an overall decrease in grape exports this season 2023, Peru concentrated volumes in W51, marking a 23% YoY increase. Brazil extended exports to W52, shipping 5,473 containers. Chile began US shipments four weeks earlier, in 2023. US production challenges led to a notable drop in cold storage volumes, underscoring the significance of imported grapes.

Global Table Grape Market is Facing Trade Controversy

The global table grape market faces challenges with low availability and transport issues. Peru's limited production impacts European prices, while Spain grapples with weather-related problems. On the other side, India faces shipment delays due to Red Sea disruptions, and South Africa seizes opportunities with a strong domestic market.

In the US, early grape season closure prompts early imports from Peru. While Brazil and Chile are experiencing export fluctuations, weather conditions in California are resulting in reduced cold storage volumes. Lastly, the grape market in Europe has witnessed supply delays and France grapples with high prices due to volume reductions. Overall, the industry navigates complexities in various regions, shaping trade dynamics.

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