"The grape job is far from easy at the moment. The last couple of years, we have seen the EU season pretty much done by now with Peru & Brazil hitting a strong market with prices going up up up," said John Fox, Grape Product Manager for Pacific Produce. "However, we have an EU season this year that keeps on giving. Add in early and large grape arrivals from Brazil, the general lack of demand for grapes, and you're left with fridges filling up and fruit with no homes. It's becoming a buyer's market, except there are no buyers!
"One positive is that the USA market has changed due to rains in California, with the spot market now paying $40 plus for Peru 8.2Kg white seedless. This will take a lot of Peruvian fruit away from the EU and should help get the stocks down, but we are talking weeks away from now, as there is enough still to arrive. Looking at it now, it won't be an easy start for Namibia and RSA, which are just about to get going and have a good crop to export."
© Pacific Produce
Weather influences
Weather plays a strong part in the grape business and can turn the market very fast – the Californian situation is a good example and can effectively save the growers in Peru and, in turn, help the European market by alleviating pressure.
"The last few days have seen some rain in Piura, which is not normal – fingers crossed it has not caused too many problems and the weather will return to normal."
"Programs are key to move volume, whereas the open marketplace is increasingly volatile, for good and bad!.
John commented that shipping is currently ok, but logistics can be a big drama at seasonal peaks. So far, it is ok from Peru.
Decline in consumption
"The biggest concern we have is that consumption levels seem to be in decline – is that to do with lower quality in the summer months affecting consumer confidence and limiting repeat purchases? Or is this a general cost-of-living issue that will affect other higher-value fruits? The general marketplace in November is never easy as we move to colder and wetter weather, so it is hard to see if this is just winter blues or if consumption has taken a hit."
For more information:
John Fox
Pacific Produce
[email protected]
