California's table grape season is still going strong and weekly shipments are brisk with over four million boxes per week hitting the market currently. Harvest is expected to continue for another two to three weeks and cold storage inventory levels are fair on both red and green seedless grapes. However, a prolonged heat wave in July resulted in difficult growing conditions and indicators point to lower volumes and an earlier end to the season. "There are just a few players who feel they can take the industry through the month of December," says Ira Greenstein with Direct Source Marketing. As a result, December pricing is expected to be elevated, ranging between $32 and $38.
Due to California's anticipated earlier finish, the focus will gradually shift to imports. In the next two to three weeks, imported grapes will start to play an increasingly important role in the U.S. market.
Peru and Brazil
Typically, Peru's Piura region as well as Brazil start loading fruit at the end of October or early November for arrival around the third week of November. Piura is expected to have a normal crop, although the region is dealing with La Niña, causing drought like conditions. As a result, water is a big concern for growers in this northern part of Peru. "Although lack of water is not impacting the early part of the season, it could very well impact the back end. It's definitely a concern and growers are keeping an eye on the situation."
Brazil keeps growing their table grape production and the country is looking to offer the U.S. pretty reasonable support this year. "We may see more Brazilian grapes on the shelves this coming import season, especially since California is expected to finish early," commented Greenstein.
Steady import season
"It will be a very different import season from last year," he continued. In 2023, California's table grape volume was reduced by 18 million boxes due to a summer hurricane and Peru shipped 10 million less as a result of El Niño rains. "It felt like there was a shortage through April." This upcoming import season, however, the flow of grapes is expected to be steadier and more normal. Peru is anticipating harvesting 80 million boxes with 50 percent of that volume coming to the U.S. Once Chile starts shipping, the country projects a total table grape volume of 66 million boxes with close to 50 percent of that volume coming to the U.S. market as well.
"All in all, it is a different feeling going into the import season this year versus last year and we are expecting markets to be in balance, with promotable volumes by February and season long average pricing that would be profitable for the grower as well."
For more information:
Ira Greenstein
Direct Source Marketing
Tel: +1 (914) 241-4434
[email protected]
www.directsourcemktg.com