In the second half of the import season, the grape supply from Peru and Chile has been exceeding demand, which is a stark contrast to the first half of the season when demand far exceeded supply. "Stocks have been exceeding cold storage facilities' capacities. This has caused a problem with freshness and condition," says David Watson, SVP sales and marketing with Fresh Farms.
Meanwhile, grape production in Mexico's Jalisco region started on time this season, and arrivals began on April 1st. This year, growing conditions have been very favorable across all of the growing regions. "The weather has been just right for producing high-quality grapes, and we're seeing excellent conditions in both Jalisco and Sonora. With that, we anticipate a strong and consistent supply of top-quality fruit in the months ahead," says Watson.
He adds that the high quality of grapes from Mexico this year and the freshness to market factor is the season's biggest advantage. "Volumes this year are also higher and will continue to grow each year," he says. "We see the Jalisco region growing in premium greens and reds and Cotton Candy as the South American imports continue to have supply chain challenges as well as time, distance and variety and fumigation development issues to deal with in comparison to Jalisco."
© Fresh FarmsGrape production in Mexico's Jalisco region started on time this season.
Focusing on candy varieties
In terms of varieties, the company is in production with a mix of green and red grapes and is increasingly focused on its candy varieties, which continue to gain popularity with consumers. "We're also planting new varieties in Mexico to further diversify our offerings and stay ahead of trends in the market," says Watson.
As for the demand for grapes, right now, it is lower than the supply, though retailers are actively promoting grapes. Even so, demand is still strong, especially as more fresh fruit from Mexico becomes available. Green and candy grapes have been particularly popular, and the company expects red grapes to follow suit as new varieties hit the market in upcoming seasons. "Grapes are one of people's favorite snacks, and high-quality grapes can pass through the system seamlessly, leaving everyone involved with a positive experience," adds Juan Pablo Molina, general manager and CEO of Fresh Farms. "Our goal is to grow the finest, most delicious grapes, ensuring that we deliver top-notch quality to retail partners. Ultimately, we want to create satisfied customers who return for more of our exceptional grapes."
© Fresh Farms"Volumes this year are also higher and will continue to grow each year," Watson says.
Stable, favorable prices anticipated
So where is this leaving pricing? "The market dynamics are different this year. South American import prices are currently split between fresh fruit arrivals and older stock that has yet to sell," says Watson, adding that this looks quite different from last year's pricing trends. "For fresh fruit from Mexico, we expect prices to remain stable, and even favorable, over the next few weeks. We anticipate that as the volume from Sonora ramps up, there will be more opportunities for promotions during June and July, which could drive additional sales for our retail partners."
Meanwhile, one of the biggest challenges the industry is facing is costs: the rising costs of labor, water, products and inputs, and more. That said, Watson says higher costs won't impact the quality standards of its fruit.
Looking ahead, following Jalisco's timely start, a slight delay in production is expected for Sonora, with a larger volume expected to arrive between the second and third weeks of May. While the timing may vary slightly, the company is optimistic that the overall season will be strong and that increased volumes will be seen in the coming months–particularly in June.
For more information:
David Watson
Fresh Farms
Tel: +1 (520) 377-0878
https://freshfarms.com.mx/