Lebanese grapes would do much better if markets like South Africa would be open to them. Ghassan Awdi, Vice President of Lebanese grape exporter ETS Awdi Enterprise, sees strong demand for their grapes, despite not many markets being available to the company for export: “This season there has been a lot of requests for Lebanese grapes. Numerous traders and agents have contacted us for Lebanese grapes for markets in Asia and Africa. I think there would be much more demand, if only some important markets were open to us. Currently there are more markets closed to Lebanese grapes than there are open. Lebanese grapes would like to enter markets like Indonesia, Thailand, and South Africa.”
Awdi states that low supply has led to a price increase that isn’t insignificant. However, the company tries to keep its prices competitive for their clients. “This season had somewhat of a lower supply compared to last year. Weather changes in the beginning of the season slightly reduced the output. For this reason, the grapes prices in Lebanon have been almost 50 per cent higher compared to last year. However, ETS Awdi Enterprise believes in the long term, and we kept our prices in line with what is suitable and competitive for our customers.”
Thankfully the grapes are in good shape, as the weather did not bring storms. However, the lower supply will result in an earlier end of the season, Awdi explains: “So far, the season has had no random hailstorms or rainstorms. Leaving Lebanese produce in excellent quality, especially suitable for long distances. I do, however, believe that due to the large demand for Lebanese grapes and the lower yields this year, that our season will end earlier. However, we still have enough supplies to send shipments to our repeat customers by the first week of December.”
Labor costs are higher for Awdi than they are for their Lebanese competitors, Awdi says. This has to do with certain choices they’ve made as a company. “Our labor costs have gone up and it’s true that compared to other Lebanese exporters, our costs are higher. Unlike other exporters, our employees, which amount to about 400 women, are all Lebanese nationals. Because we believe in reinforcing the community and that in the long term that they are better than bringing in seasonal workers from Syria. Many of our Lebanese customers abroad appreciate that we support our community and accept the slightly higher operation costs that we have.”
To be ready for the future, Awdi emphasizes that they’ve made investments, which are needed if Lebanese grapes are to compete with those of US or Peruvian origin: “We’re also investing heavily in modern packing lines, a rapid cooling vacuum room and better handling procedures for our grapes. We believe that if Lebanon wants to expand to non-conventional markets, we need to improve our quality so that we can be considered on a par with grapes from the USA and Peru. To further improve the reputation of Lebanese grapes abroad, other exporters need to stop packing with the wrong practices. For example, harvesting grapes at noon or packing grapes under the sun in the fields, without a packing facility.”
There is still some room to experiment with varieties that haven’t been grown yet on Lebanese soil, Awdi explains. “Our season is quite long. It starts from Mid-July and runs until the first week of December. We’re looking to take risks in planting varieties of grapes that have never been grown here in Lebanon. It’s a large risk, because we do not know how certain varieties will react in Lebanon, due to the climate and terrain. However, we see that this, in the long term, is what will differentiate us as a Class A exporter.”
According to Awdi, the Chinese grape production is a real problem, as they’re growing varieties illegally and then exporting them for rock bottom prices. “This year, we’ve had less competition from Spanish grapes in Africa and Asia. However, we have been facing real fierce competition from Chinese grapes. The Chinese have been illegally growing varieties native to Japan, such as Shine muscat, and have reached record low prices as low as $10 5x100 grams punnet cartons. Unfortunately, they have flooded many markets in Asia and have constant supply,” he concludes.
ETS Awdi Enterprise be exhibiting during Fruit Attraction in Madrid. You can find their booth at Hall 1, stand 1D04A.
For more information:
Ghassan Awdi
ETS Awdi Enterprise
Tel: +961 71 406 661
Email: ghassan@awdi.biz