The market situation for South African grapes looks significantly better than last year, according to Eddy Kreukniet of Exsa Europe. "Back then, heavy rainfall in South Africa caused considerable damage. This year, however, the weather conditions have been nothing short of excellent. As a result, we have a high-quality product that is reaching the market much faster. Unlike last year, we have experienced minimal delays at Cape Town port, which has positively impacted the entire supply chain. There is a slightly higher volume of fruit arriving, but the improved quality is driving repeat purchases at a much higher rate than last year. However, South Africa is progressing through its harvest more quickly, meaning we are likely to exit the peak two weeks earlier than last year. Additionally, some varieties, such as Crimson, have lower yields this season."
Eddy, Floor, and Stijn Kreukniet at Fruit Logistica
"India started a bit later than last year and is now shipping more controlled volumes to Europe," Eddy continues. "Last year, Indian exporters largely created their own difficulties by sending 40-50% more grapes, despite higher sea freight costs and the need to reroute via the Cape. They still have to take the longer route, but freight rates are now at a more reasonable level, and shipments are being managed more carefully. Moreover, Indian volumes will only start arriving in mid-March, meaning the market for white grapes is expected to remain strong for the time being. As a result, prices for punnets of white grapes remain high for this time of year. The price for 4.5 kg boxes is somewhat lower, mainly due to an imbalance caused by overlapping supplies from South Africa and Peru. For red grapes, prices are typically lower between February and early March due to seasonal supply peaks, but a correction is expected by April."
"Peru also sent significantly more grapes to Europe from the start of the season, capitalizing on the weak market conditions in October, November, and December. However, as of January, prices have returned to a more realistic level. Current Peruvian volumes are still higher than last year, but a poorer harvest is expected in Ica, meaning supply is likely to decline quickly," Eddy explains. "Meanwhile, shipments from Chile will increase in the coming weeks, though the volume sent to Europe will largely depend on demand from the U.S. A lighter crop is also expected in Chile for certain varieties. While supplies may still be relatively high in March, volumes are anticipated to drop in April and May."
Lastly, the search for new grape varieties remains ongoing, although there are some challenges, according to Eddy. "In general, we are seeing growers reduce the number of varieties they cultivate. While new varieties have brought many benefits to the industry and our company, not every new variety has been a success. Over the past decade, we have seen numerous failures where too many grapes were planted at once without sufficient market demand. That being said, the need for new varieties remains, both from a cultivation and market perspective. For example, replacements are needed for red seedless varieties such as Flame, Starlight, which are reaching the end of their commercial viability."
For more information:
Eddy Kreukniet
Exsa Europe
Tel: +31 88 735 0003
Mob: +31 620 25 78 11
info@exsaeurope.com
www.exsaeurope.com