"Fruit Logistica comes right in the middle of our grape season, but when I was there this year I just realised again the value in sitting opposite your peers, and the amount of information that can be shared. Especially with the grape season ending earlier, it was good to have those conversations in person," Exsa South Africa's head of marketing Nico Louw observes. "We pack grapes from week 46 to, traditionally, week 16, supplying many retail programmes and ensuring that those programmes are never left short of fruit."
Until now, to their great relief, logistics has presented little problem and they've not had to use conventional vessels to the extent of last year. The first delay occurred two weeks ago as the wind closed operations at Cape Town port for a few days due to high wind speeds.
The stacks in Cape Town are currently full (during the first nine days of February, the Cape Town Container Terminal recorded 52 hours of wind delays compared to 13 hours over the same period last year, the table grape organization SATI points out in its latest newsletter) and it's slowing down the loading. They've got containers plugged in outside the harbour (cold rooms are full) waiting for its vessel: Transnet Port Terminals has said there are twelve at anchor at the moment. The state-owned ports company has reported 200 lost operational hours due to wind over the past two weeks.
"We're organizing the loading out of containers that would've gone to Cape Town, in Port Elizabeth instead. That said," he adds, "operationally, Cape Town is functioning far better than last year."
"Europe more lacking in white products than the UK"
"Everywhere the grape market is pretty full. Large sales were forecast for December and January and then the UK received snow over December and one or two Peruvian vessels due in December only arrived by mid-January, and it resulted in an oversupply in white grapes."
Last year the open market in Canada and the USA was "fantastic", he says, and consequently this year overwhelmed by supplies. According to US importers, "record" amounts of grapes have been sent by Peru and Chile, while South Africans also pushed for that space.
Therefore, he notes, delays in vessel departures create some breathing space in some markets and, fortuitously, the quality of the crop which was not rained on (unlike last year) is very good. It could take some time to work through volumes, though. Canadian retailers reckon the market will only regain traction by April.
Little appetite in East for 2025's reds & blacks
All of the Crimson clones grown in the Western Cape, even those known as heavy bearers, carry a light crop this season. The cultivar makes up a huge component of the Western Cape crop, and if it's light, the season will necessarily come to an earlier end. He reckons they'll be done by week 13, in time to reach the post-Ramadan market in the Middle East.
The price for red and black grapes in the East makes no sense, rather sending it to Europe.
Traditionally around 10% of Exsa South Africa's grapes would be sent to the East, but this year much less. They're seeing evidence of diminished purchasing power in Malaysia, Singapore, Vietnam, China, and Russia.
"Last year Russia was a good option, but not this season as a result of the weakening of the Rouble. It now costs them 17% to 20% more to buy our grapes."
Also, a light Crimson crop is presenting them with a shortage of extra-large berries. It complicates the trade with the so-called 'special' markets. "Russia and the East want XL, which we don't have, and so more grapes are going to the traditional markets."
This year the price for red and black grapes offered in the East makes no sense, he says, and they are rather sending it to Europe. "Literally, the pull is only for XXL and XXXL, your biggest, your best-looking fruit, and then it's got to arrive well to realise the premium." He quips that Vietnamese consumers like their grapes "as big as small apples".
China, however, is so saturated with cherries, and the price of grapes so unpredictable, that Exsa South Africa has sent no grapes to China thus far and may very likely not send any at all this season, for the first time since the market opened for South Africa. Also, he points out, that China grows its own grapes throughout the year.
Red grapes go to Canadian supermarket programmes, while Alphonse Lavallée is still bought by French and Italian buyers. And suddenly, he notes, there is a shortage in Red Globe which so many grape growers were removing a few years ago. Louw remarks that some high-end retailers in Europe pay very high prices for Red Globe. The tough cultivars are equally prized in Africa and on the Indian Ocean islands that South Africa supplies with fruit.
For more information:
Nico Louw
EXSA South Africa
Tel: +27 21 914 8280
Email: marketing@exsa.com
www.exsa.com