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Overview of world grape market

Time:2017-12-24 19:47wine - Red wine life health Click:

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Overview of world grape market Due to losses in Peru and the drought in South Africa, there is a possibility of shortages on the grape market. Although good harvests are expected in, for example, Namibia and the northern parts of South Africa, these are insufficient to compensate for the losses. This is evident in the higher prices that are being reported by, for instance, German importers. Prices are also higher in Spain, but there this is mainly due to the New Year's tradition in that country. Grapes play an important role in this.


China expects larger harvest
In the 2017/2018 (May-June) season, production is expected to increase by 400 000 tonnes, amounting to 11,2 million tonnes. According to USDA figures, the total acreage amounts to 800 000 hectares, remaining stable for the third year in a row. This spells an end to the rapid expansion in that country. Over the past 16 years, acreage has grown by 500 000 hectares. Despite this increased production, exports dropped to 225 000 tonnes. Better management has resulted in improved quality of this fruit. This means prices are also better. This is why demand is declining in these price-sensitive markets in Asia. Imports are expected to keep climbing since the demand for grapes outside the Chinese season is also increasing. This will increase Southern Hemisphere imports. The country is expected to import 250 000 tonnes of grapes from countries like the US, South Africa, South Korea, India, Mexico, Chile and Peru. China has become an important export market for Amercian grapes. This year, the export protocol for Australia was set in motion. This country is good for 40% of Chinese exports. It is also an important market for Indian grapes.


Overview of world grape market



Californian growers make up for shortages in Peru

Although traders are confident about the transition from the domestic to the import season, there is some cause for concern. The smaller volume of early grape varieties and the late start of the Chilean season should have boded well for Californian grapes. But, according to USDA figure, there was still a large volume of seedless white grapes in storage at the end of November. There is also a higher volume of red grapes in storage. The growers in California want to stretch the season to after the holiday season. One trader says it would be unusual for them not to be able to achieve this in the future. The season progressed well there, and the higher volumes of Californian grapes were able to make up for the shortages in Peru.


South Africa: Southern regions plagued by drought

The drought was a factor for growers here. This month, the grape season in this country is in full swing. The expectation for regions in the north of this country remains positive. Good harvests are expected in the Orange River region and areas neighbouring Namibia. The picture in the south looks very different and, due to the drought, losses are being expected. Some growers are only irrigating their high-quality, high-value grapes, while others are thinning out their vineyards. The harvest in the Western Cape is expected to be 14% lower, at 287 000 tonnes. The problems caused by the drought will also still be a factor in the next season. A normal harvest of 344 000 tonnes is expected in the Orange River region.


Namibia positive over season

In Namibia, the grape season started very well. This is good news for growers who had to end their previous season early. Temperatures have now soared to 40 degrees, but earlier it was ideal grape weather, with temperatures around the 30 degree-mark during the day, with cool nights. This was good news for the colouring of the grapes. The harvest did, however, start slightly late, but expectations remain positive.


Although Namibian grapes are still mainly destined for Europe and the UK, ever-increasing volumes are exported to Malaysia and Vietnam. Exporters are hoping for a profitable season because of the shortages on the market.


Peru is expecting smaller volumes

Ths South American country has calculated a loss of 30% for the northern part of the country. In the south, the estimates are for 10% in the red. This information was collected by a trade association that advises a number of large players in the Peruvian grape industry. An especially large shortage, 38%,  of the Red Globe from the north is expected. The cold weather has delayed the start of the season by about two weeks in both the north and the south of the country.


Chile: 'Old' varieties threatened by changes in the US

Production in this country remains stable at 920 000 tonnes. Despite the huge amount of rain and enough cold hours, the yields are normal. Exports are running parallel to production. There have been changes in recent years because their most important export market, the US, is investing in new varieties that have a better shelf-life. This means less space for Chilean grapes. According to one trader, growers who are still cultivating 'old'varieties such as the Thomson (sultanina), Superior, Perlette, and especially the Flam, are running a "big risk" because the American market is moving to other varieties.


Argentina: Growers shunning fresh market

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