"Stressed" is how Jaap den Boer of Olympic Fruit describes the current situation in the grape market. "The issues began when European grapes left the market three weeks earlier than usual. Typically, we rely on white seedless grapes from Europe until late October, but this year the season in Spain ended by early October. This caused significant shortages toward the end of the season."
"As a result, everyone in Europe quickly shifted to grapes from Brazil and Peru, but those regions faced their own challenges. Brazil, for example, had considerably lower yields due to rain during the harvest, which meant they shipped less to Europe. Peru encountered various problems, including strikes, water shortages, and Maximum Residue Limit (MRL) issues, and the country is increasingly focusing on exports to the United States."
"This combination has led to severe shortages in the market, pushing spot market prices to historically high levels. These elevated prices don't appear to be ending anytime soon. Grapes from Namibia and South Africa are arriving about a week later than usual, so we will continue to see a tight grape market until Christmas," Jaap explained. "Supermarket prices are also extremely high, resulting in almost no promotions, even though grapes are traditionally a strong promotional product."
On Wednesday, December 4, the first shipment of grapes from Namibia and South Africa will arrive in Rotterdam. "Initial forecasts from South Africa predict 70 million cartons, slightly fewer than last year. While the initial quality of the grapes seems somewhat lower, how this will impact the market remains to be seen. Specifically, the supply of red grapes from South Africa appears to be slowing down, which should sustain a favorable market until at least January. It's shaping up to be similar to last year but with even more extreme conditions."
When asked about the main trends, the sourcing manager said the past few weeks were primarily about ensuring availability and meeting customer demands. "This was quite challenging in November, but I think we managed well. Logistics in South Africa remain a significant concern. Efforts are underway to optimize the supply chain. For example, Namibia's Walvis Bay port is increasingly being used to relieve pressure on Cape Town, but even so, getting grapes out on time is still a challenge. Strong winds can shut down the port for days at a time."
For more information:
Jaap den Boer
Olympic Fruit
Handelscentrum ZHZ 40a
2991 LD Barendrecht
Tel: +31 (0)180 646 210
[email protected]
www.olympicfruit.com