The grape market is clearly divided into two seasons. The northern hemisphere runs roughly from May until December, with a peak in September and October. The southern hemisphere runs contrary, from October to May, with a peak in March. Big players on the international market are Italy, Chile, South Africa and the US. Countries including California, Italy and Spain are in production. The three are expecting a good season. Australia is strong on the Asian market. The country gained access to Japan and South Korea this year, but has a strong base in other Southeast Asian countries. In Peru, growers are focusing on new varieties, with a big interest in seedless varieties. A surplus of Red Globe, a variety that's grown a lot in Peru, is worrying the growers.
California expects good harvest
After a record harvest last year, growers in California are expecting a good harvest once again, with a comparable volume. The estimate is 110 million boxes. At the moment, the Central San Joaquin Valley is in production. The harvest in the valley started June 22, 10 days earlier than usual. The rain, uncommon for July, hasn't affected the harvest.
New varieties are being planted, but growers don't see a clear trend toward certain varieties, sizes, or flavour. Of course these criteria play a part in choosing what to plant. In sales, a clear division is noticeable. The domestic market prefers the seedless varieties, the seeded grapes are mostly exported to the Pacific Rim. China is the biggest market in this region. On July 21, prices for Sugraone were between $16.95-$20.95, Flame Seedless $16.95-$18.95, Summer Royal $18.95-$20.95.
Australia strong on Asian market
Australia is expected to export 88,000 tonnes of grapes this year, last year this was 87,000 tonnes. The main export markets are found in South East Asia. This year, Japan opened its borders for Australian grapes for the first full season. Around 160 containers Thompson Seedless and Crimson Seedless were exported to these markets. Besides Japan, Australia also signed a trade agreement with South Korea, gradually decreasing import tariffs. The sector sees a lot of potential in these markets. Vietnam was also opened again.
China bought 45% of the grape export. Other big markets are Indonesia, Thailand, Japan, Singapore and the Philippines. The Asian market is evolving well, and is open to new varieties, an Australian grower and exporter says. The market seems to be shifting to the seedless varieties.
For the domestic market, there were some concerns among growers a few months ago. American grapes gained access to the market during the Australian season. In Queensland, the increased competition has reportedly led to bankruptcies among growers.
Finally, in March of this year, the new variety Sweet Angie was commercially introduced. Sydney and Melbourne were the first two domestic markets where the grape was available. The seedless grape was also shipped to Asian markets.
Peru goes for diversification
Peru is nervously awaiting the arrival of the new season. In September, the first grapes from the north of the country are expected. Peru can roughly be divided into two production regions, north and south. These regions supplement each other. Where the season in North Peru runs from September until December, South Peru comes to the market in November, and stays until March. The export is divided rather evenly, with a 30% share for Europe and Russia, America, and Asia.
Between 70 and 80% of the cultivation comprises of Red Globes, the rest is supplemented with the seedless varieties. Crimson is the most grown red grape variety, for white grapes Flame and Sugraone are popular. At the moment, growers in the south are working on developing new varieties, with a group trialling about 20 new varieties. The focus is on seedless varieties, partly because the last two Red Globe seasons were disappointing.
Peru is facing overproduction, which influences the mood on the market. "This resulted in low prices, and it's probably been difficult to really make money with the Red Globe," a Peruvian trader says. In forecasts, the situation remains stable.
There are challenges for the export though. The Russian boycott affects the situation in Europe, with a lot of produce remaining in Europe. Due to the devaluation of the rouble, Russia is not an attractive export market, and the US buys limited volumes. Like last year, the exporters are moving their focus to Asia and the United Arab Emirates as destinations for the Red Globe. There are also concerns among growers about the possible effects of El Niño. Nevertheless, the Peruvian trader is expecting an average season.
Good start to season in Italy
Italy is the third biggest grape producer worldwide. China and Turkey take up the first two places, with 4.9 million tonnes and 1.6 million tonnes respectively. Italy follows closely at 1.4 million tonnes. Most of the production, 70%, is found in Puglia. Puglia and Sicily together account for 93.8% of the volume.
The season started mid-May in Mazzarrone (Sicily), starting 10-15 days later than last year. In the past weeks, the Sicilian grape market wasn't at its best. The ripeness of the product wasn't always perfect, and demand was stuck, partly due to the high prices. One trader says that the Victoria grapes yielded €1.70-1.80 until week 29, with the start of the season in Apulia, prices went down to €1.30. The Italia 2 variety yielded between €1.50-1.60, the variety is available for around a month. The export is focused on Spain, France, Belgium, Germany and Switzerland.
The start of the season Apulia was good, with higher prices than last year. The start was around 10 days later though on July 13, caused by the cold weather in May and June. In the forecasts, a lower volume is expected. Export destinations are Germany, Switzerland, France and the Czech Republic. The acreage for the seedless varieties has increased in recent years, but the seeded grapes still dominate. Northern Europe, especially Great Britain and Germany, prefers the seedless varieties.
Spain looks to Emirates
The season in Murcia is successful, after a lower harvest last year, the expectations for this year are normal. The region is the largest in grape cultivation, followed by Alicante. The heatwave of the past weeks somewhat slowed down the harvest, cold nights are needed to achieve the desired Brix level. In week 28, the first Superior grapes hit the market.
Cultivation of seedless varieties is slowly on the rise, at the cost of the seeded varieties. On the European market, there is limited room for the seeded grapes, these grapes only sell well when the colour is good and supply is not too high. The Spanish growers can hardly handle the competition with Italy regarding these grapes. Russia was an important buyer of the seeded grapes, since the embargo Spanish exporters have started looking at the United Arab Emirates. "That's a growing market, and they pay better than Algeria for instance, which is another big export destination," one Spanish exporter says.
Netherlands: market calm again
After a period of a few months in which demand on the Dutch market was high, things have calmed down again. With the start of the summer holidays and a larger supply, prices have stabilized. Import is coming from Italy, Spain and Portugal at the moment, prices are up to 13 euros. Although a trend is noticeable in the market toward the seedless varieties, connoisseurs appreciate the seeded varieties, one trader says.
Olympic Fruit signed an exclusive agreement with Italian Apirene Puglia, a division of Alma Seges. The Dutch company takes on the sales of 1 million kilos of seedless grapes.
Germany mostly imports from Spain and Italy
German wholesale markets mainly have grapes from Southern European countries. Supply from Egypt is coming to an end, and a trader in Düsseldorf reports being one of the few to still offer Egyptian grapes. Most traders have already switched to Spanish grapes, the trader says. The Egyptian grapes have recently improved, after a period in which high prices put demand under pressure. He does notice it's hard to sell the grapes. "If a kilo of peaches in a supermarket costs 99 cents and grapes €2.49 for 500 grammes, grapes don't sell as well." The German consumer clearly favours the seedless varieties. Prices on the wholesale market are €4 per kilo for Italian Summer Royal. For other varieties, the prices are: Michele Palieri €3.30, Spanish Fantasy €3.10, Flame Seedless €4.40.
Israel: big market for own cultivation
The Israeli grape export has decreased significantly in the past decade. From 7000 tonnes in 2006 to an expected volume between 2500 and 2800 tonnes this season. Compared to the total harvest estimate of 50,000-60,000 tonnes, the export is a small part of the trade.
The Israeli acreage has around 3000 hectares, about 15% of which is planted with early varieties. These latter hectares are mostly in the Jordan Valley. Israel expects a good season because of lower supplies from India and Chile. The period during which Israel can export grapes to Europe is short. For just three to five weeks a year, Israel jumps into the gap between supply from other destinations. The competition from Chile, South Africa, Turkey and Spain is too big for the Middle Eastern country. This season, the export from South America decreased, probably due to the lower euro, giving Israel more export opportunities. Of course the exchange rates also caused problems for the Israeli exporters, nevertheless, one grower calls this the best season of the past five years. The import market for grapes is reported to grow, partly because import restrictions have been lifted or eased.
South Africa: small import market
The African country is a well-known player in the global grape trade, especially with the export during the season. Off-season, South Africa doesn't become a big importer. Only a few high-end supermarkets import grapes from North Africa or Southern Europe. Spain is an important supplier, after which the retailers shift to Mexico or California, and sometimes Italy. The South African market does seem to open up further to the import of grapes. While previously only chains like Woolworth imported the fruit, interest from other players is also increasing now.
