Tension on the grape market since the end of the European season

The South African grape campaign, currently at its peak of availability, should last another 3 weeks, before giving way to Chile. Timothée Levesque, product manager at Dole France, looks at the southern hemisphere campaign, the market and the events that have shaped the season.

Tight market overall in terms of volumes and prices
The early end of European production and the shortage of products from Peru have had an impact on prices. "December and January were very good months, although prices were high compared to traditional levels," due to a drop in European supply, particularly in Italy, resulting in a shorter campaign, and "a very dynamic American market buying large volumes from Peru." As a result, the market has been very tight in terms of volumes and prices since the end of the European season. "We have also been faced with logistical difficulties in South Africa, with complicated loads telescoping onto the European market. Goods were also rejected in Germany and ended up on the French market, putting pressure on prices. Lately, we have been receiving large volumes from South Africa, which has been driving down the value of the fruit. Fortunately, we have been able to maintain prices similar to those of last year, rather than the very low levels seen in some previous years."

This year, India remains the great unknown. The country is reportedly experiencing problems accessing certain European markets (higher freight costs), which has led to delays in volumes.

"Very fluid situation at the moment"
Despite a faster start and higher prices, the current season is likely to be similar to the previous one, with a fluid market at the moment. "The start of Ramadan has helped to absorb the volumes that arrived on the market two weeks ago. We will see how the market behaves around Easter, which falls early this year, and what impact this will have on consumption."

Dole France has decided to stop using 500g plastic trays, given the "absence of an alternative solution," contributing to a reduction in potential volumes.

Improved product quality
Like last year, this season saw a predominance of large calibers, with a much higher quality than in previous years. "This is the second year with such excellent quality, which was not affected by logistical delays. Quality is higher than in previous years, because the country has chosen to turn to new varieties."