W7 2025: Grape Weekly Update

Published Feb 21, 2025
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In W7 in the grape landscape, some of the most relevant trends included:

  • Increased grape production in multiple regions, including Australia, Chile, and India, has led to market saturation, intensifying competition and driving prices down.
  • Heavy rains in Peru and climate variability in New York are impacting grape quality, yield, and market dynamics, reinforcing the need for improved water management and adaptive growing strategies.
  • Namibia and South Africa achieved strong export performances, benefiting from high-quality fruit and efficient logistics, with South Africa experiencing a significantly better season than the previous year.
  • Overlapping harvest seasons in Chile and Peru, as well as global competition from India, South Africa, and the US, have influenced pricing trends, particularly in key export markets like Europe and the US.

1. Weekly News

Australia

Australian Grape Supply Rises as Prices Drop Due to Weak Demand

Australian grape supply surged by approximately 30% year-on-year (YoY) driven by increased production and the early market entry of Ralli seedless red and green grapes. Quality remains high, with no visible defects such as white spots or skin damage, but prices have declined rapidly due to abundant supply and weak market demand. Ralli seedless grape prices are about 15% lower than in previous years, while Peruvian green grape arrivals remain limited, with prices also lower than in past seasons. As market dynamics shift, many grape traders are prioritizing Australian grapes, capitalizing on their availability and competitive pricing.

Namibia

Namibia’s Grape Exports Reach USD 54.4 Million in Dec-24

In Dec-24, Namibia exported grapes valued at approximately USD 54.4 million, primarily to the Netherlands and the United Kingdom (UK), while importing around USD 153 thousand worth, mainly from South Africa. This strong export performance helped narrow Namibia’s trade deficit to USD 7.9 million, the lowest in the past year. Despite an overall decline in trade activity, the grape sector remained a vital driver of agricultural exports, reinforcing Namibia’s strong position in international markets.

Peru

Peru Reached Table Grape Export Target Despite Weather Challenges

Peru has already reached its projected 78 million boxes of table grape exports for the current season, even as harvesting continues. However, heavy rains in Ica, particularly in Villacurí, have raised concerns about potential losses, with an estimated 5 million boxes still in the fields. If weather conditions remain stable, avoiding further rainfall and increased acid rot pressure, losses could be minimal. This situation underscores ongoing challenges in water management and highlights the need for improved infrastructure to store and utilize excess rainfall, ensuring long-term agricultural sustainability.

United States

New York Grapes Face Growing Challenges as Demand Increases

New York, the third-largest wine-producing state in the United States (US), cultivates over 134 grape varieties across nearly 16 thousand acres, but the industry faces growing challenges from invasive pests like the spotted lanternfly, plant diseases such as powdery mildew, and climate variability. Research from Cornell AgriTech highlights how unpredictable seasonal shifts disrupt grapevine development, impacting cold hardiness and yield. In response, the state has strengthened pest management programs and adopted adaptive growing strategies to enhance resilience and sustain the industry's long-term growth amid evolving environmental pressures.

South Africa

Strong Season for South African Grapes Driven by Favorable Conditions

South Africa’s grape industry is experiencing a significantly better season than last year, with favorable weather and minimal port delays resulting in higher fruit quality and quicker market arrivals. The improved product has led to strong repeat purchases, though the harvest is progressing faster, with peak supply expected to end two weeks earlier than last season. While some varieties, like Crimson, have lower yields, global competition remains a key factor. India manages shipments more cautiously, while Peru initially sent higher volumes before stabilizing. Chilean exports are set to increase depending on US demand. To ensure long-term viability, growers continue refining grape varieties, focusing on market-driven selections.

2. Weekly Pricing

Weekly Grape Pricing Important Exporters (USD/kg)

* All pricing is wholesale * Varieties: Chile (Thompson Seedless), Peru (Grape Italia), South Africa (White Seedless), and India (Green Grape)

Yearly Change in Grape Pricing Important Exporters (W7 2024 to W7 2025)

* All pricing is wholesale * Varieties: Chile (Thompson Seedless), Peru (Grape Italia), South Africa (White Seedless), and India (Green Grape) * Blank spaces on the graph signify data unavailability stemming from factors like missing data, supply unavailability, or seasonality

Chile

Chile's grape prices surged by 15.19% week-on-week (WoW) to USD 0.91 per kilogram (kg) in W7, with a 36.50% month-on-month (MoM) increase and a 42.19% YoY surge. The price increase is due to a temporary supply correction following previous weeks of oversupply, which had driven prices down. As peak harvest volumes stabilize, reduced market availability has led to improved price recovery. Additionally, strong export demand, particularly from the US and Europe, has supported higher pricing despite lingering logistical challenges. The continued implementation of the Systems Approach, ensuring better fruit quality and compliance with export standards, has further contributed to price gains. However, ongoing competition from Peru, whose grape season overlaps with Chile’s, remains a key factor influencing market dynamics.

Peru

In W7, grape prices in Peru fell slightly by 2.99% WoW to USD 0.65/kg, showing a 16.41% MoM decrease and a 35% YoY decline due to the high supply levels following the country reaching its projected 78 million boxes of table grape exports. The ongoing harvest and heavy rains in key production areas like Villacurí have raised concerns over potential losses, prompting some growers to accelerate harvesting and release more fruit into the market, further pressuring prices. Additionally, global competition from Chile and South Africa, and also with fluctuating demand in key export markets, have contributed to the downward trend. However, if weather conditions remain stable and losses are minimized, price stabilization could occur in the coming weeks.

South Africa

Grape prices in South Africa dropped by 26.06% WoW to USD 1.22/kg in W7, marking a 24.66% MoM decline and a slight YoY decrease of 5.43% due to the accelerated harvest progress, leading to increased supply in both domestic and export markets. Favorable weather conditions and minimal port delays have resulted in higher fruit availability, intensifying competition and pressuring prices downward. Additionally, global market dynamics have played a role, with India carefully managing its shipments, Peru stabilizing its export volumes, and Chile preparing to increase exports based on US demand. While strong repeat purchases have supported sales, the overall market remains highly competitive, influencing price trends.

India

India's grape prices increased by 4.76% WoW to USD 0.66/kg in W7 due to a slight improvement in domestic demand and adjustments in supply distribution, easing some of the previous downward pressure. However, grape prices saw a significant drop of 28.26% MoM and 25.84% YoY due to the continued peak harvest season from January to April in key regions like Nashik, leading to an oversupply in the market. Increased competition among domestic traders and exporters, combined with logistical challenges such as container shortages and port congestion, further contributed to the decline. Additionally, fluctuating international demand, particularly from the European Union (EU), and shifting buyer preferences limited price recovery.

3. Actionable Recommendations

Enhance Water Management for Future Stability

Peruvian table grape growers should invest in improved water storage and drainage systems, such as reservoirs, drip irrigation, and underground drainage channels, to mitigate the impact of heavy rains. Strengthening infrastructure, including elevated trellising systems and reinforced canal networks, will help safeguard future harvests and ensure long-term agricultural sustainability.

Adjust Pricing Strategies Amid High Supply

Australian grape traders should implement flexible pricing strategies, such as dynamic pricing models and volume-based discounts, to balance supply and demand. Targeting new buyers in emerging markets like Southeast Asia and the Middle East and optimizing promotional efforts through seasonal marketing campaigns, retailer partnerships, and online sales platforms can help stabilize prices and maintain profitability.

Enhance Pest and Disease Management

New York grape growers should strengthen pest control measures by implementing integrated pest management (IPM), biological controls like predatory insects, and precision spraying technologies to protect yields. Adopting climate-resilient practices, such as cover cropping, improved irrigation systems, and vineyard canopy management, will help mitigate weather-related risks. Investing in disease-resistant grape varieties like Marquis and Geneva Red and closely monitoring seasonal shifts using predictive weather modeling can help maintain production stability.

Sources: Tridge, Agraria, Cornell Chronicle / Cornell University, Freshplaza, The Namibian

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