1. Weekly News

Global

Peru Surpasses Chile as Top Global Table Grape Exporter in 2023

The global table grape trade is shifting, with Peru surpassing Chile as the top exporter in 2023. Peru's extended growing season and lower labor costs have driven a 14.3% annual increase in its grape exports, while Chile's exports have dropped by 6.6%. China has moved to third place, pushing Italy and South Africa down. India has also seen a significant rise in grape exports, now ranking eighth. In contrast, Turkey and Mexico are experiencing declines, while Brazil and Moldova are seeing growth. Uzbekistan has fallen out of the top 10 due to vineyard losses from severe frost.

Italy

Early Harvest in Apulia Reduces Italia Grape Yield by 20 to 30%

In Apulia, Italy, the harvest of Italia grapes started about 15 days early due to the intense summer heat. The grapes have excellent quality with high sugar content and crispness, but yields are down by 20 to 30%. Over the past two years, this reduction has added to a 60% drop in overall volume as many vineyards are being uprooted and traditional varieties are phased out. Prices are stable but expected to rise due to strong demand in both domestic and European markets.

Germany

Grape Harvest Decline in Baden-Württemberg Amid Challenging Conditions

In Baden-Württemberg, Germany, the 2024 grape harvest is expected to produce 1.9 million hectoliters (hL) of wine must, a 10% year-on-year (YoY) decrease and 12% below the six-year average. Severe late frosts, persistent rains, and fluctuating temperatures posed challenges for grape growers. In Baden, white grape varieties are projected to yield around 720 thousand hL and red varieties about 420 thousand hL, both showing declines. In Württemberg, where red wine is prominent, production is forecast to fall by 11% YoY, with red grape production at 500 thousand hL.

Spain

Storms Cause Extensive Damage to Grape Crops in Spain

Recent storms in Spain, particularly from August 12 to 16, severely damaged agricultural areas in Catalonia, Murcia, the Valencian Community, and Albacete. Hailstorms affected over 8,150 hectares (ha) of wine grape crops, with compensation estimates of around USD 22.1 million (EUR 20 million), according to Agroseguro, Spain’s leading agricultural insurance provider offering coverage against natural disasters and extreme weather conditions. In Albacete alone, storms damaged more than 2.7 thousand ha of grape crops and other vegetables. Citrus and fruit trees in other regions were also affected, resulting in extensive agricultural losses nationwide.

Tajikistan

Tajikistan's Grape Harvest Surged in 2024

Tajikistan’s grape production surged in 2024, with over 31 thousand tons harvested by September 1, 2024, an 11-fold increase compared to last year. This impressive recovery comes after the harsh winter of 2022, which damaged many vineyards. Tajikistan farmers quickly restored their crops, leading to a significant boost in production. Overall, Tajikistan's fruit harvest reached over 270 thousand tons, a 54% YoY rise, with more growth expected by year-end.

United States

California's Grape Season Shows Strong Supply and Good Quality

California's grape season in the San Joaquin Valley is progressing well, with good supply and quality reported despite some heat in Jul-24. The region is experiencing a successful growing season following favorable conditions, including a wet winter and a warm, dry spring. Traditional and specialty grape varieties like Cotton Candy are seeing strong yields. Demand remains high due to the excellent eating quality, driving repeat purchases. Pricing for California grapes is stable, with no significant changes expected in the near future.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W36 2023 to W36 2024)

Peru

Peru's grape prices continued to rise in W36, reaching USD 1.23 per kilogram (kg), a 6.88% week-on-week (WoW) increase from USD 1.15/kg in W35. There was a 26.74% increase month-on-month (MoM) and an 11.73% YoY increase. This ongoing increase is due to Peru's strong position as the world's leading grape exporter, supported by its extended growing season and high export demand. Despite global stagnation and rising competition from countries like China and India, Peru's ability to leverage its export strength and maintain high global demand has contributed to the upward trend in grape prices.

South Africa

In South Africa, grape prices increased by 2.14% WoW to USD 4.71/kg in W36, compared to USD 4.61/kg in W35. This rise reflects a 2.27% MoM increase from USD 4.61/kg in W35. The price growth is driven by continued improvements in vineyard management practices, including the successful application of drones for pest control, which has further enhanced grape yields and quality, but required high investments leading to higher prices. These pest management advancements have stabilized production and contributed to a more consistent and elevated pricing trend for South African grapes.

India

In W36, grape prices in India fell by 8.4% WoW to USD 0.80/kg, down from USD 0.87/kg in W35. This represents a 12.71% MoM decline from USD 0.91/kg and a 21.56% YoY drop. The price decline is primarily driven by higher supply despite unfavorable weather conditions, including heatwaves and insufficient rains. Improved supply levels have resulted from increased cultivation efforts to meet market demand. The market is adjusting to these factors, with ample supply exerting downward pressure on prices, even though production challenges persist due to adverse weather.

3. Actionable Recommendations

Address Decreased Grape Yields in Apulia

Italian grape producers in Apulia should optimize vineyard management practices to address the yield reduction caused by recent heat waves. They should implement advanced irrigation techniques, such as drip irrigation and soil moisture sensors, to ensure efficient water use and mitigate heat stress. Investing in climate-resilient grape varieties, such as Grenache, Carignan, and Mourvèdre, more tolerant to extreme temperatures and drought conditions, will support consistent production and help maintain yields. Additionally, enhancing marketing strategies by promoting this year's crop's high quality and unique attributes through targeted campaigns and partnerships with key distributors like Unifrutti, Oranfrizer, and Spreafico can capitalize on strong demand, ensuring price stability in domestic and European markets.

Implement Immediate Storm Damage Mitigation for Spanish Grape Crops

Spanish grape producers should act swiftly to address storm damage by thoroughly assessing affected areas and applying emergency restoration measures. They should deploy immediate protective measures such as temporary netting and windbreaks to shield remaining crops. Producers should also collaborate with local agricultural agencies to secure compensation and support for recovery efforts. To prevent future damage, they should invest in more resilient infrastructure and explore advanced forecasting tools to better prepare for adverse weather conditions.

Enhance Weather Resilience for Baden-Württemberg's Grape Harvest

Grape growers in Baden-Württemberg should improve weather resilience by adopting advanced frost protection techniques and investing in weather-resistant grape varieties. Implementing frost protection systems, such as wind machines or anti-frost fans, can mitigate damage from late frosts. Investing in grape varieties more resilient to fluctuating temperatures and persistent rains will help secure future yields. Growers should also enhance irrigation systems better to manage water during excessive rain or drought periods. Collaborating with local agricultural experts to develop these strategies will be crucial in addressing the current yield decline and ensuring more stable production in the future.

Sources: Tridge, Eastfruit, Thedrinkbusiness, Agrar, Agraria, PEefeagro, MXfruit. Freshplaza