1. Weekly News

Chile

Chile and US Finalize Systems Approach for Table Grape Exports

Chile and the United States (US) have concluded negotiations to implement the Systems Approach for table grape exports from Chile's central-northern regions to the US market. Over two decades in the making, this bilateral agreement aims to enhance the conditions for Chilean table grapes entering the US market, particularly from low pest prevalence areas in the Atacama, Coquimbo, and Valparaíso regions. Under the agreement, these producers can export without fumigation, improving competitiveness and market access. The exchange of letters, signed by the US' Trade Representative and Chile's Undersecretary of International Economic Relations, marks a significant milestone and reinforces terms under the existing Free Trade Agreement (FTA), ensuring streamlined trade processes for agricultural and dairy products.

Europe

European Countries Collaborate to Enhance Grape Production and Pest Management

The table grape contact group from France, Italy, Portugal, and Spain is launching a campaign to tackle the shortage of pest control products. They have identified a significant issue with the disappearance of these products and active ingredients, making pest management challenging. Spain expects to produce 300 thousand tons of table grapes, with Murcia alone contributing 230 thousand tons. Portugal and Italy will ramp up their productions gradually, while France plans to start its campaign in August. In 2023, Spain exported 132.6 thousand metric tons (mt) of table grapes worth USD 353.9 million (EUR 329 million).

Mexico

Export Challenges for Mexican Table Grape Producers Amidst Reduced Flame Production

Like those from the Association of Table Grape Producers of Sonora, Mexican table grape producers face export challenges due to high temperatures and reduced Flame grape production. The primary varieties exported include Flame, Early Sweet, Sweet Globe, Sweet Celebration, and Sugar One, primarily to the US and Canada, totaling about 25 million boxes. However, this season has experienced delays and a shortage of United States Department of Agriculture (USDA) inspectors, prompting some producers to opt out of sending fruit to the US. Efforts are underway to explore new markets and educate consumers about different grape varieties, collaborating with South Korean authorities and Mexico's National Service of Health, Safety, and Agri-Food Quality.

Vietnam

Transforming from Rice Fields to Grape Farming Success in Vietnam

Yên Bình Commune, located in Vĩnh Tường District, Vietnam, is shifting from traditional rice farming to cultivating profitable fruit trees such as black grapes, milk grapes, and peony grapes. Originally from Japan, peony grapes are particularly lucrative due to their high economic value. The region's soil conditions are well-suited for grape varieties, providing significantly higher income than rice cultivation. With an expanding vineyard area of approximately 10 thousand square meters (sqm), grape farming generates annual revenues exceeding USD 39,285 (VND 1 billion).

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W26 2023 to W26 2024)

Peru

In W26, grape prices in Peru dropped by 4.96% week-over-week (WoW) to USD 0.88 per kilogram (kg) but showed a 9.29% increase from the last month. The weekly decrease is due to short-term fluctuations in supply and demand, possibly influenced by seasonal harvesting patterns or market adjustments. Conversely, the monthly increase suggests a longer-term trend of market stabilization or improved demand, supported by factors like enhanced shipping logistics or strategic export adjustments.

India

Grape prices in India rose by 9.51% WoW in W26 to USD 0.74/kg, following a slight decrease in W25. However, there was also a 6.39% increase from the previous month while showing a significant 22.66% year-over-year (YoY) decrease. The weekly increase may reflect short-term market dynamics, such as improved demand or supply adjustments. Conversely, the yearly decrease likely stems from broader factors affecting the grape market over the past year, including seasonal production variations, export challenges like the Red Sea crisis, and logistical issues impacting fruit quality and export costs. These factors have combined to influence the price trends observed in India's grape market.

3. Actionable Recommendations

Economic Shift of Grape Farming in Yên Bình, Vietnam

Local authorities and farmers in Yên Bình Commune should prioritize ongoing training to improve farming techniques, diversify markets to reduce dependency on a single buyer and develop infrastructure to support the expanding vineyard area. Additionally, investing in research on new grape varieties and engaging the community in this agricultural shift will help sustain the transformation from rice to lucrative grape farming, ensuring continued high annual yields and economic benefits.

Improving Pest Management for European Table Grape Production

To tackle the shortage of pest control products in European table grape production, the contact group from France, Italy, Portugal, and Spain should adopt integrated pest management (IPM) strategies. Focus on diversifying control methods with biological controls and resistant varieties, invest in research for sustainable alternatives, train farmers on safe product usage, advocate for supportive policies, and establish effective monitoring frameworks. These steps aim to enhance pest resilience, sustain crop productivity, and maintain competitiveness in the market.

Strengthening Resilience in Mexican Table Grape Exports

Mexican table grape producers, particularly in Sonora, are encountering export hurdles due to high temperatures and reduced production of critical varieties like Flame grapes. This season, delays and USDA inspector shortages have affected shipments to the US and Canada. To mitigate these challenges, efforts should focus on diversifying export markets and educating consumers about different grape varieties. Collaborating closely with South Korean authorities and Mexico's National Service of Health, Safety, and Agri-Food Quality will be crucial. Improved coordination with USDA for efficient inspections and logistics is essential to enhance resilience in Mexican table grape exports.

Sources: Tridge, Freshplaza, Agrodiario, 24h newspaper, MXfruit, PortalFruticola, Vietnamnet