1. Weekly News

Australia

Australian Table Grapes Set for Expanded Market Access in Japan

Australian table grapes will be available to Japanese consumers starting next season following the removal of varietal import restrictions. The Australian Government's announcement marks a significant win for Australia's table grape industry. Moreover, the increased varietal access is anticipated to boost the export market value by USD 19.7 million (AUD 30 million) in the coming years and to reach USD 32.9 million (AUD 50 million) in the future. This expansion is crucial for Australia's table grape industry and its broader agriculture industry, as Japan represents Australia's second-largest market for agriculture, forestry, and fisheries products.

Chile

Chilean Table Grape Exports Surge in 2023/24 Season

Chile exported over 64 million boxes of fresh grapes in the 2023/24 season, marking a 7% year-on-year (YoY) increase in volume and a 13% YoY rise in value. The success was driven by introducing new table grape varieties, such as Sweet Globe, Allison, and Sweet Celebration, which accounted for 39 million boxes, or 62% of total shipments. The quality of Chilean grapes was notably recognized, supported by effective logistics and stable prices in the United States (US) market. iQonsulting, a market research and consulting firm specializing in the global fruit industry, reported a 6% increase in table grape shipments from the Southern Hemisphere, Mexico, and India, totaling 2.2 million tons. Chile remained the leading exporter of fresh grapes in the Southern Hemisphere, responsible for 24% of global shipments. Meanwhile, Peru saw a 12% YoY decline in exports due to El Niño, whereas India, South Africa, and Mexico experienced notable growth in their grape exports.

Peru

Peru and China Update Phytosanitary Protocols for Table Grape Exports

In Jun-24, the Peruvian President and the Chinese President signed an updated phytosanitary protocol to enhance the air shipment of Peruvian table grapes to China, reinforcing the strategic partnership between the two countries. Asia is a significant market for Peruvian grapes, representing 13% of shipments, with China being an important destination. The new protocol requires compliance with cold treatment in Peru before air transport and opens all Chinese-authorized seaports to fresh fruit, alleviating port congestion. The updated protocol is anticipated to ease air shipments during the Chinese New Year, boosting demand for high-quality grapes. The industry will need to evaluate air freight rates to ensure cost-effective shipments. It may benefit from improved access to other Asian markets such as Taiwan, Japan, and South Korea.

United States

California Grape Production Recovers from Weather Challenges in the Previous Season

California table grapes are expected to be exceptionally high quality in 2024, with early varieties showing impressive size. Around 30 to 35% of the harvest will be exported to various markets, including Canada, Mexico, Taiwan, Hong Kong, South Korea, Vietnam, Malaysia, Japan, Central America, and Singapore. Despite competition from other countries, such as Chile, California grapes still dominate the market during the summer months in the Northern Hemisphere. Last season, Hurricane Hilary caused a 30% reduction in California's grape crop, marking the lowest yield since 1994. This season, the industry anticipates promotable volumes extending through early Jan-25. The California Table Grape Commission is launching a global marketing campaign targeting the US and 21 export markets to promote California grapes as a healthy snack, particularly during holidays and celebrations. For the 2024 season, initial estimates project the harvest at 94.4 million 19-pound (lb) boxes, slightly below the average from 2020/22.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W29 2023 to W29 2024)

Chile

In W29, grape prices in Chile continued to increase, rising by 11.11% week-on-week (WoW) to USD 1.47 per kilogram (kg) from USD 1.32/kg in W28. This price surge is due to the strong international demand for Chilean grapes, driven by their high quality and the successful introduction of new table grape varieties like Sweet Globe, Allison, and Sweet Celebration. The effective logistics and stable prices in key markets, such as the US, have further supported this upward trend. The decline in grape exports from Peru due to El Niño has reduced competition, allowing Chilean grapes to command higher demand and prices.

Peru

Due to a significant reduction in supply, wholesale grape prices in Peru slightly increased by 0.29% WoW and 4.20% month-on-month (MoM). This rise in prices is caused by a mix of factors affecting how much grapes are available and how much consumers want them. Despite improvements in port infrastructure at Paracas, which have facilitated better export services, particularly to Europe, overall grape supply remains constrained. This is largely due to a significant reduction in shipments from northern regions like Piura, which has impacted the total volume available for export. Additionally, the shift in export destinations, with Mexico emerging as the third-largest importer and surpassing China, has further contributed to the supply tightness. The decreased shipments to China, rather than increased consumption in Mexico, highlight a redistribution of supply that is exerting upward pressure on prices. As a result, the combination of reduced overall supply and shifting trade patterns has led to the observed increase in grape prices in Peru.

India

In India, grape prices in W29 stood at USD 0.90/kg, an increase of 2.1% WoW and 20.60% MoM. This rise is due to severe disruptions in the recent export season, including the Red Sea crisis, delayed shipping, increased freight costs, and broken supply chains. These factors reduced the availability of high-quality grapes and increased costs, leading to higher prices.

3. Actionable Recommendations

Optimize Air Freight and Market Access for Peruvian Table Grapes

Peruvian grape exporters should review air freight rates to ensure cost-effective shipments under the new phytosanitary protocol. Currently, grapes are shipped via established routes from significant ports like Callao, but high freight rates persist due to port congestion. To enhance export efficiency, the Ministry of Agriculture should explore alternative ports and direct air routes to additional Asian markets such as Taiwan, Japan, and South Korea. Investing in port infrastructure and logistics can further alleviate congestion and reduce shipping costs, helping Peru capitalize on the new protocol and expand its market reach.

Capitalize on New Market Opportunities in Japan

The Australian Table Grape Association should develop a strategic plan to expand exports to Japan by leveraging the removal of varietal import restrictions. To penetrate the Japanese market effectively, the Association should implement targeted marketing campaigns highlighting the superior quality and diverse varieties of Australian table grapes tailored to Japanese cultural preferences. Partnering with local retailers, including supermarkets and specialty stores, will ensure wide distribution and prominent placement, while joint promotions such as in-store tastings and discounts can attract consumers. Utilizing digital platforms for social media and e-commerce campaigns will enhance accessibility and engagement. Participating in trade shows such as Foodex Japan and hosting tasting events will build relationships with importers and retailers. Educational initiatives to inform Japanese consumers about the health benefits and proper handling of Australian grapes, combined with culturally appropriate and transparent packaging, will further boost market penetration. By executing these strategies, the Association can increase consumer awareness and demand and achieve significant growth in export market value.

Enhance Global Market Presence for Californian Table Grapes

The California Table Grape Commission should intensify its global marketing efforts, focusing on the exceptional quality and size of this season's grapes. Currently, California grapes are primarily exported to markets such as Canada, Mexico, Taiwan, Hong Kong, South Korea, Vietnam, Malaysia, Japan, Central America, and Singapore. To maximize export volumes and reinforce California's market dominance, the Commission should leverage targeted campaigns and strategic partnerships in these existing key markets and explore opportunities in emerging markets such as India, the Middle East, and other parts of Asia. By expanding its reach and promoting the unique qualities of California grapes, the Commission can tap into new consumer bases and drive further growth.

Sources: Tridge, Fruitnet, MXfruit, Agraria, Freshplaza, Freshfruitportal, Produce Bluebook