1. Weekly News

Afghanistan

Kunduz Farmers Struggle to Capitalize on Increased Grape Production

In Kunduz Province, Afghanistan, grape production has significantly increased, with reports indicating a 90% rise in yields; however, local farmers face significant challenges, including limited market access and inadequate cold storage facilities. Farmers criticized the Taliban for failing to provide essential agricultural inputs, such as chemical fertilizers, pesticides, and improved seeds, with their presence primarily felt during tax collection. While the region's soil suitability contributed to higher grape yields, the lack of market infrastructure caused prices to plummet, forcing farmers to sell their produce at reduced rates to avoid spoilage. This situation is exacerbated by the absence of cold storage, leading to economic losses for many farmers struggling to find buyers for their excess grapes. Moreover, the Taliban's Directorate of Agriculture, Irrigation, and Livestock faces criticism for focusing on tax collection rather than supporting farmers. Traders advocate for developing export routes and cold storage facilities to enhance profitability and reduce reliance on fruit imports during off-seasons, making it crucial to address these challenges to unlock Kunduz's agricultural potential and support the livelihoods of local farmers.

Bolivia

Bolivia's Grape Producers Confront Rising Costs Amid Input Shortages

Grape production in Bolivia's central valley of Tarija faces increased costs due to rising prices for imported agricultural inputs, including fertilizers and agrochemicals. Over 90% of these inputs are sourced abroad, with significant price hikes reported – for example, the cost of the treatment base increased from USD 28.95 to 57.89 (BOB 200 to 400) to USD 144.73 (BOB 1,000). The dollar scarcity in the country exacerbates this issue, impacting producers who must conduct regular treatments to protect their vineyards. The lack of diesel and gasoline also forced growers to rely more on labor, further inflating production costs. Many wineries refrained from purchasing grapes in 2024, creating uncertainty about future demand and pricing in a market where growers cannot control sales prices. Moreover, the concerns regarding weather-related challenges, such as hailstorms, add to the apprehension, leaving producers scrambling for makeshift solutions to safeguard their crops.

Georgia

Georgia's Grape Imports Reach Record High in 2024

From Jan-24 to Aug-24, Georgia imported grapes valued at over USD 3 million, representing a 2.8% year-on-year (YoY) increase compared to the USD 2.9 million in imports during the same period in 2023. This marks a historic peak in grape imports for the country. Georgia sourced grapes from 10 primary countries, with Iran, Armenia, and Uzbekistan as the top suppliers. Iran led the exports with 489 tons worth USD 960 thousand, followed by Armenia with 602 tons valued at USD 565 thousand, and Uzbekistan with 294 tons worth USD 513 thousand. This rise in imports underscores Georgia's growing demand for grapes.

Mexico

Caborca Achieves Record Grape Production in 2024 Season

The municipality of Caborca, Sonora, reached a historic milestone in its 2024 grape season by matching its record production from 2023. The region produced 77.5 thousand tons of table grapes across 4.1 thousand hectares (ha), generating a value of USD 129.9 thousand (MXN 2,510 million). Approximately 70% of these table grapes are exported, primarily to the United States (US), with primary varieties including Flame, Sugraone, and Sweet Globe. Additionally, Caborca is Mexico's leading raisin producer, contributing 90% of the national output. Innovative practices, such as drip irrigation, enhance sustainability and quality in this key agricultural region.

Peru

Peru Resumes Grape Exports to Ecuador After Phytosanitary Agreement

Peru, a global leader in grape production and export, signed an agreement with Ecuador's Agrocalidad to resume grape exports following a suspension since the 2015/16 season. This agreement between Peru's National Agrarian Health Service (SENASA) and Ecuadorian authorities redefines the phytosanitary requirements for table grape exports. With this renewal, Peru gains access to Ecuador's market of 18 million consumers. The resumption of exports is expected to benefit Peruvian producers and reinforce the country's position as a top grape exporter. Peru's primary grape-producing regions include Ica, Piura, Lambayeque, and La Libertad.

South Korea

Highland Grape Growers in South Korea Face Severe Crop Damage Due to Heat and Drought

Grape growers in the highlands of Namwon, Jeollabuk-do, South Korea, at the base of Mt. Jiri, are facing significant crop damage due to last summer's extreme heat and drought. Typically dark black and boasting a sugar content of 15 Brix grade, the grapes now appear red and contain only 11 Brix grade, rendering them too sour for sale. These adverse conditions resulted from an average temperature of 26.4°C and a substantial drop in rainfall. Consequently, grape prices plummeted, with some growers selling their grapes for under USD 3.71 per 3 kilograms (KRW 5,000/3 kg), compared to USD 13.36/3 kg (KRW 18,000/3 kg) in 2023. The damage impacts approximately 100 ha of vineyards, prompting local officials to seek government support.

South Africa

South Africa’s Table Grape Exports Expected to Rise for 2024/25 Season

The South African Table Grape Industry Association (SATGI) anticipates a 1% YoY increase in inspected export volumes for the 2024/25 season, reflecting a 6% rise over the five-year average. The expected national harvest is approximately 76.4 million 4.5-kg boxes, with potential variations ranging from 74.1 million to 78.7 million 4.5-kg boxes. While the northern provinces may experience a 3% YoY decline due to a reduced planted area, the Berg and Hex River regions are expected to maintain average volumes. Favorable winter temperatures and improved water reserves will contribute to high-quality produce. Additionally, South Africa's ongoing increase in white seedless grape plantings underscores its alignment with global market demands.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

Yearly Change in Grape Pricing Important Exporters (W40 2023 to W40 2024)

Peru

In Peru, grape prices decreased by 8% week-on-week (WoW) and 8.73% month-on-month (MoM) to USD 1.15/kg in W40 due to a temporary dip in demand as consumers adjusted to the new pricing levels following the resumption of exports to Ecuador. Despite the stable supply levels, this short-term price reduction reflects market fluctuations as producers adapt to changing dynamics. However, YoY prices increased significantly by 43.75% due to Peru's continued strong position as a global leader in grape production and the strong demand from domestic and international markets. This sustained growth is supported by high consumer interest in Peruvian grapes, particularly from primary producing regions such as Ica, Piura, Lambayeque, and La Libertad, despite cloudy weather conditions that may affect short-term supply.

South Africa

Grape prices in South Africa in W40 remained stable at USD 4.86/kg since W39, with a 4.53% MoM increase due to sustained consumer demand and the positive reception to quality improvements driven by enhanced vineyard management practices. The stability in supply levels and ongoing investments in advanced technologies contributed to maintaining high grape quality and supporting consumer confidence. Additionally, favorable winter temperatures and improved water reserves are expected to further enhance the quality of the upcoming harvest, aligning with the SATGI forecast of a slight increase in export volumes for the 2024/25 season. This positive outlook and increased white seedless grape plantings underscore South Africa's commitment to meeting global market demands, reinforcing the overall price stability in the market.

India

India's grape prices dropped by 14.67% WoW to USD 0.64/kg in W40, reflecting a 14.67% MoM decrease and a 40.74% YoY decline due to the ongoing oversupply in the market and unfavorable weather conditions. Despite a minor recovery in consumer demand, the substantial increase in grape production kept supply high, exerting downward pressure on prices. Additionally, heatwaves, scattered thunderstorms, and smoke negatively affected grape quality, leading to further consumer hesitation. This combination of factors contributed to a significant price drop compared to the previous month and last year.

3. Actionable Recommendations

Optimize Input Sourcing for Grape Production in Bolivia

Grape producers in Bolivia should explore alternative sourcing strategies for agricultural inputs to mitigate rising costs. Collaborating with local suppliers to identify bulk purchasing options can help lower expenses associated with fertilizers and agrochemicals. Additionally, producers should consider implementing integrated pest management practices to reduce dependence on costly chemical treatments. Forming cooperatives can enhance purchasing power and provide access to shared resources, allowing growers to navigate the challenges of currency scarcity and increasing operational costs. This strategic approach can help stabilize production expenses and improve overall vineyard profitability.

Implement Climate-Resilient Farming Practices for Grape Growers

Grape growers in Namwon should adopt climate-resilient farming practices to mitigate the impact of extreme weather conditions on crop quality. This includes implementing shade nets to protect vineyards from excessive heat and investing in mulching and soil moisture retention techniques to combat drought. Additionally, growers should explore cultivating heat-tolerant grape varieties that are better suited to withstand temperature fluctuations. By prioritizing these strategies, growers can enhance their resilience to climate challenges and improve grape quality, ultimately stabilizing prices and profitability in the long term.

Strengthen Supplier Relationships for Grape Imports

Georgia importers should strengthen relationships with their primary grape suppliers, particularly Iran, Armenia, and Uzbekistan. By establishing direct communication and collaboration with these countries, importers can negotiate better pricing, ensure consistent quality, and optimize logistics to meet the growing demand for grapes. Additionally, building partnerships can facilitate timely responses to market fluctuations and enhance supply chain efficiency, ultimately supporting sustained growth in the import sector.

Sources: Tridge, Agraria, Elperiodico, Eastfruit, Freshplaza, Hasht-e-Subh Daily, Luznoticias, MXfruit, Yna