1. Weekly News

Argentina

Argentina's SENASA Implements Pest Control Program to Protect Vineyards

In Argentina, the National Service for Agri-Food Health and Quality (SENASA) is actively working to protect vineyards from pests like the grapevine moth (Lobesia botrana) through its National Program for the Prevention and Eradication of the pest. In La Pampa, where local farmers cultivate approximately 285 hectares (ha) of vineyards in towns such as Arata, Trenel, and Santa Rosa, SENASA's monitoring efforts play a vital role. During the last harvest, the region produced 2.3 million kilograms (kg) of grapes, with 664 thousand kg vinified across seven local wineries. This initiative safeguards grape crops and supports the growth of regional economies.

Chile

Drought Severely Reduces Pisco Grape Production in Chile's Coquimbo Region

Despite recent rainfall, farmers in Chile's Coquimbo region are struggling with severe water shortages. The drought has significantly affected the production of pisco grapes, a primary ingredient for the iconic Chilean spirit. Pisco grape production has plummeted over the past two decades, dropping from 200 million kg in 2000 to just 50 million kg in 2024. The ongoing water crisis threatens future productivity, with farmers hoping to maintain current output levels.

Mexico

Caborca’s Grape Production Reaches Record Value in 2024

The 2024 grape harvest in Caborca, Sonora, Mexico, reached record-high production in 2023. With 7.7 thousand ha cultivated, 4.1 thousand ha were dedicated to table grapes, yielding 77.5 thousand tons with a commercial value of USD 127 million (MXN 2.5 billion). In comparison, 3.5 thousand ha produced 17.8 thousand tons of raisins, valued at USD 16.1 million (MXN 318 million). Approximately 70% of the table grape production is exported, primarily to the United States (US). Known for its high-quality grapes and diverse varieties like Flame and Sweet Globe, the region also benefits economically through job creation, employing thousands of workers.

Peru

Peru Resumes Grape Exports to Ecuador After Agreement

Following a bilateral agreement between the National Agrarian Health Service (SENASA) and Ecuador's Agrocalidad, Peru resumed grape exports to Ecuador. Signed in Tumbes, this agreement reinstates phytosanitary requirements, granting access to Ecuador's market of 18 million consumers. As a global leader in grape production, Peru aims to enhance bilateral trade and strengthen its agro-export sector. Exports to Ecuador had been suspended since 2015, but this new deal enables Peruvian producers to re-enter the market, solidifying Peru's status as the world's leading grape exporter. The primary grape-producing regions in Peru include Ica, Piura, Lambayeque, and La Libertad.

Spain

Increased Grape Harvest in Axarquía, Spain Due to Favorable Weather

In Axarquía, Spain, the grape harvest traditionally begins in early to mid-August but has started earlier in recent years due to rising temperatures and frequent heat waves. Despite challenges from climate change, heavy rainfall in Mar-24 led to a 30% year-on-year (YoY) increase in grape production in 2024. Several villages in Axarquía commemorate the Muscat of Alexandria (Malaga grape) harvest with notable festivities such as La Noche del Vino en Cómpeta. Moreover, tourism initiatives such as the route of the vineyards of Al-Andalus highlight the region's viticulture.

Ukraine

Grape Prices Surge in Ukraine Due to Drought and War

In Ukraine, grape prices at the Shuvar wholesale market in Lviv have risen sharply, with dark grapes increasing by 30.8% YoY and white grapes by 37.7% YoY. Both varieties now cost around USD 2.05/kg (UAH 85/kg), up from USD 1.57/kg (UAH 65/kg) for dark and USD 1.28/kg (UAH 53/kg) for white grapes in 2023. The price hike is due to droughts that weakened grape yields and war-related logistical challenges, particularly in primary production regions like Odessa, Zaporizhia, and Kherson. Although prices may drop slightly at the end of the harvest, experts do not expect a significant decrease. Western regions, such as Prykarpattia and Zakarpattia, are gaining importance as supply sources.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W39 2023 to W39 2024)

Peru

In Peru, grape prices remained at USD 1.25/kg in W39 due to stable supply levels and the resumption of exports to Ecuador following a bilateral agreement that reinstated phytosanitary requirements. This development has allowed Peruvian producers to access Ecuador's market, bolstering trade opportunities. Moreover, there is a 1.63% month-on-month (MoM) increase and a 35.87% YoY increase due to Peru's strong position as a global leader in grape production, supported by high demand from both domestic and international markets, particularly in the primary grape-producing regions of Ica, Piura, Lambayeque, and La Libertad.

South Africa

South Africa's grape prices increased slightly by 1.04% week-on-week (WoW) to USD 4.86/kg in W39, reflecting a 3.18% MoM increase. This is due to ongoing consumer demand driven by the continued positive response to quality improvements from enhanced vineyard management practices. Following the recent adjustments, the stabilization in supply levels has also played a role in maintaining price momentum. Furthermore, sustained investments in advanced technologies have ensured that grape quality remains high, bolstering consumer confidence and contributing to overall price resilience in the market.

India

Grape prices in India decreased by 3.85% WoW to USD 0.75/kg in W39. There is also a 6.25% MoM and a 30.56% YoY decrease. This is due to the continued oversupply in the market, which has persisted despite a slight improvement in consumer demand. Increased cultivation efforts have produced a robust grape supply, keeping prices under pressure. Additionally, the negative impact of heatwaves and insufficient rainfall on production quality has contributed to consumer hesitation, further influencing the downward price trend due to lower quality. As the market faces these factors, the significant YoY decline reflects the lasting effects of supply excess and production challenges.

3. Actionable Recommendations

Implement Water Conservation Practices for Pisco Grape Farmers

Pisco grape farmers in Chile should adopt advanced water conservation practices to mitigate the effects of the ongoing drought. This includes utilizing drip irrigation systems to optimize water use, implementing soil moisture monitoring technologies to ensure efficient watering, and exploring drought-resistant grape varieties like Grenache, resilient in dry climates, or Zinfandel, known for thriving in hot, arid conditions. Additionally, farmers should collaborate with local agricultural organizations to access resources and training on sustainable farming techniques. Despite challenging environmental conditions, prioritizing water management strategies will help sustain pisco grape production.

Diversify Sourcing Strategies for Grape Buyers

Grape buyers in Ukraine should diversify their sourcing strategies to mitigate the impact of rising prices and supply chain disruptions. By establishing relationships with producers in emerging supply regions in Ukraine such as Prykarpattia and Zakarpattia, buyers can secure alternative sources of grapes and reduce dependency on affected areas like Odesa and Zaporizhia. Additionally, buyers should consider negotiating long-term contracts with growers to stabilize prices and ensure a steady supply. This proactive approach will help manage costs and maintain access to quality grapes in a volatile market.

Leverage the New Trade Agreement to Expand Market Presence

Peruvian grape producers should leverage the recently signed bilateral agreement with Ecuador to expand their market presence aggressively. Producers should immediately enhance their marketing strategies to target Ecuador's consumers, highlighting the quality and variety of Peruvian grapes. Additionally, they should ensure compliance with the reinstated phytosanitary requirements to facilitate smooth export operations. Producers can maximize the benefits of this agreement by actively promoting their products through trade fairs, local partnerships, and targeted advertising, solidifying Peru's status as a leading grape exporter in the region.

Sources: Tridge, Infopico, Emol, Elimparcial, Freshplaza, Eastfruit, Gob.pe, Surinenglish