The grape market is currently facing a challenging situation. "There are a lot of South African grapes on the market. Exports from South Africa are up 8-10% globally, while exports to Europe have risen by 27% through week 7. In week 5, almost 12 million packages were shipped for export, with Europe as the main destination, followed by the UK, Russia, and the Middle East," says Andrea Candiano of Van der Lans International from Baarn.
"Unfortunately, congestion problems in South Africa have caused major delays. As a result, many containers have been waiting on the quayside for one to two weeks, which is leading to widespread quality issues in the market. Plenty of South African grapes are still being loaded in the coming weeks, meaning a high volume of containers will continue to arrive at least until week 12," the importer continues.
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Production in India 40-50% lower
"The situation with South African grapes is working to the disadvantage of the Indian season. Prolonged periods of heavy rainfall and delayed pruning have significantly affected production in several growing regions in Maharashtra. India has experienced nearly six months of rain, which delayed pruning and resulted in 40-50% lower production," says Andrea, who recently visited his suppliers in India.
"Weeks 3 and 4 were also foggy, preventing Indian growers from harvesting due to brix levels being too low. As a result, India's export figures are far behind schedule. Many plantations will not be ready for harvest until next month, pushing arrivals in Europe and the UK further into spring. Up to week 6, 460 containers had been exported, compared to 1,600 by the same week last year. Overall, the season is characterised by tighter availability, later timing, and continued cost pressure throughout the chain."
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Strong domestic demand
"Until the beginning of this week, only 1,200 containers had been exported, compared to 2,400 a year earlier. The season is therefore not comparable to other years. In addition, Indian growers are very cautious about exporting due to the market situation in Europe. There is strong demand in the domestic market, where seedless grapes are being purchased by local buyers at prices around €1.50 per kilo. For growers, this is attractive, as they face far less risk than when exporting."
"Moreover, the outlook for the European market remains weak at least until week 12 due to the large presence of South African grapes. Supply is high, quality issues are widespread, and prices are under pressure as a result. The market is only expected to recover from the second half of March. Normally, India competes on price with South Africa, but now the situation is reversed," Andrea observes. "Prices for South African grapes are between 11-12 euros per box. For fresh shipments from India, we need at least 14.50 euros. It is difficult to achieve that level in March, but it should be attainable in April."
"Although visual quality in the plantations is generally positive, we will have to monitor ripeness levels, residue management, and logistical timing carefully in the coming weeks to ensure consistent supply to the markets," Andrea says. One trend, according to the importer, is the introduction of many new varieties in India. "Many growers are focusing on crunchy varieties with larger berries and higher sugar content. We are also conducting trials with these new varieties and are in close discussions with customers about introducing them."
For more information:
Andrea Candiano
Van der Lans International
Gerrit van der Veenlaan 18
3743 DN Baarn
[email protected]
www.vanderlans.com
