1. Weekly News

Global

USDA Report Forecasts Significant Increase in Global Fresh Grape Production for 2023/24 Season

The United States Department of Agriculture (USDA) predicts a notable global increase in fresh grape production for the 2023/24 season. Despite weather-related challenges in the European Union (EU), Turkey, and the United States (US), good growing conditions in India and China are expected to boost overall production.

China's grape production is projected to reach a record high of 13.5 million tons, an increase of 750 thousand tons, following five consecutive years of growth. Additionally, exports are expected to rise by over 25%, reaching 490 thousand tons. Conversely, EU production is expected to decline by 250 thousand tons to 1.3 million tons due to adverse weather in Italy. Similarly, US production is estimated to decrease by 19% to 655 thousand tons, mainly due to hurricanes in California.

Furthermore, Peru's grape production is expected to grow slightly, but exports are projected to drop by nearly 100 thousand to 525 thousand tons due to El Niño. Chile's production is forecast to fall by 20 thousand tons to 635 thousand tons. In contrast, South Africa's production is expected to rise by 52 thousand tons to 370 thousand tons due to favorable winter weather conditions.

Brazil

Brazil Takes Action Against Grape Fungus Threat in São Paulo Fruit Circuit

A comprehensive emergency plan has been devised to combat the Glomerella cingulata fungus, which has inflicted substantial losses on grape plantations in São Paulo's Fruit Circuit. The initiative brings together experts from Embrapa Territorial, Embrapa Grape and Wine, local governments, and the agricultural sector to manage the rot affecting ripe grapes. Samples of the pathogen will undergo analysis at Embrapa Grape and Wine's Phytopathology Laboratory, with targeted property tests to refine control strategies. The plan includes on-site visits for sample collection and testing control measures' effectiveness impacting grape production, rural tourism, and cherished local events like the Grape Festival in Jundiaí.

Peru

Peruvian Table Grape Industry Anticipates Recovery with Strategic Market Expansion and Improved Logistics in 2024/24 Season

Peru's table grape industry aims to recover to previous high export volumes in the 2023/24 season, expecting to reach 71.4 million boxes (8.2-kilograms) after closing the last season with nearly 62.7 million boxes ((8.2 kg). The recovery is due to favorable climatic conditions and strategic market management, particularly in northern Peru. The primary markets include the US, Japan, and Mexico. If exporters address quality issues, Japan will become a top-five destination. Popular grape varieties like Sweet Globe, Autumn Crisp, Allison, and Sweet Celebration lead the market, while logistical improvements, such as the development of the Paracas port, enhance export efficiency.

Peru Enhances Grape Exports with New Phytosanitary Protocol

Peru's president has announced an update to the phytosanitary protocol aimed at enhancing the export of grapes by air to China, solidifying Peru's position as the world's leading fruit exporter. The new agricultural promotion law, introduced by the Minister, is expected to stimulate investment and generate employment opportunities. The Peruvian government is also working on granting market access to other products, including frozen fruits, pomegranates, and pecans.

Tunisia

Grape Production Challenges in Tunisia's Nabeul Governorate

The Nabeul Governorate in Tunisia anticipates a grape yield of 39 thousand tons in 2024, with Grombalia, a prominent wine-producing region, contributing 8 thousand tons of wine grapes and 4 thousand tons of table grapes. Despite this, the wine-growing areas are shrinking by 10 to 15%, leaving 800 hectares (ha) allocated to table grape cultivation and 1.6 thousand ha to vineyards. Concerns loom over escalating production costs driven by pricey equipment and water scarcity. Nabeul remains a pivotal region in Tunisia, commanding 70% of vineyard output and 12% of table grape production.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W28 2023 to W28 2024)

Chile

Grape prices in Chile increased by 7.14% week-on-week (WoW) to USD 1.32/kg in W28, with a 12.5% month-on-month (MoM) increase. The weekly and monthly increases are due to increased market demand and operational efficiencies gained from a new fumigation system, which has enhanced the competitiveness of Chilean grapes in the market due to higher quality.

Peru

In Peru, grape prices increased by 4.22% WoW to USD 0.91/kg in W28. However, there is a slight MoM decrease of 1.25%. The weekly increase reflects short-term market adjustments driven by demand spikes. Conversely, the MoM decline suggests a moderation in price momentum following earlier increases, influenced by seasonal factors or adjustments in market dynamics.

India

In W28, wholesale prices of grapes in India surged by 21.78% WoW to USD 0.88/kg, accompanied by a 29.36% MoM increase. The weekly and monthly increases are driven by increased demand due to improved quality and higher consumer interest. Moreover, the rise in demand is due to favorable changes in grape quality, making them more appealing to consumers locally and in export markets.

3. Actionable Recommendations

Strengthening Grape Protection in São Paulo to Combat the Glomerella Cingulata

The São Paulo Agricultural Institute, in collaboration with local businesses, organizations, and farmers, should implement a coordinated surveillance program across São Paulo's Fruit Circuit. This includes regular monitoring and early detection protocols for Glomerella Cingulata. Establish a collaborative network to identify and respond to outbreaks swiftly. Enhance farmer training on integrated pest management practices and fungicide application techniques validated by Embrapa Grape and Wine's Phytopathology Laboratory to manage and mitigate the impact of the fungus effectively. To safeguard grape production and sustain local agricultural economies, foster community awareness campaigns to educate growers and stakeholders about the importance of proactive disease management.

Sustaining Grape Production in Nabeul, Tunisia

The Nabeul Agricultural Authority, in collaboration with local vineyard owners, should implement efficient water management practices to tackle water scarcity. They should introduce subsidized irrigation systems and modern farming techniques specifically designed for grape cultivation to optimize water usage and lower production costs. Additionally, collaborating with local agricultural authorities will help promote sustainable practices and encourage investment in cost-effective equipment. Regular assessments and workshops on innovative farming methods should be conducted to boost productivity and profitability, ensuring Nabeul remains a leading grape-producing region in Tunisia.

Revitalizing Peru's Table Grape Export Industry

The Ministry of Agriculture, in collaboration with grape growers, exporters, and regulatory bodies, should enhance quality control measures across all stages of grape production and export logistics to ensure consistent, high-quality standards that meet international market demands. Implement stringent grading and sorting processes to maintain premium quality and extend shelf life during transit. Invest in technology and infrastructure upgrades, particularly in transportation and storage facilities like the Paracas port, to streamline export operations and reduce delivery times. Foster partnerships between all stakeholders to uphold stringent quality standards and leverage Peru's strategic geographical advantage for efficient market penetration and sustained growth in key export destinations such as the US, Japan, and Mexico.

Sources: Tridge, Freshplaza, Tap, Guojiguoshu, USDA, CanalRural, Agraria, Revistaeconomia