By Mark Greenberg
US: Volumes of Chilean grapes set to increase
The table grape market on the east coast has finally found itself some momentum and stability. While promotions are still only getting started, retail chain stores have
begun to focus more attention on table grapes as pricing has allowed them to put more attractive retails on the product and have finally given it some prominence in the shops.
Through Week 2, the east coast will have received 6.3 million cases of table grapes
from Chile, representing a decline of 2% through the same week last year. But by
Week 4, on the back of an especially strong arrival of Flames, total Chilean arrivals will rise to 8.4 million cases or a 4% cumulative increase over last season.
Through 13 January, 2012, Chilean exporters loaded 71 100 metric tons of table grapes to the US compared to 73 155 metric tons shipped through the same date last year for a decline of around 3%. This is likely a reflection of the fruit volume lost in the early spring snowfall in the Atacama Region. With table grapes from Coquimbo and the earliest part of the Aconcagua forming a more significant part of Chile’s table grape loadings in Week 3 and onward, this deficit will be erased in short order.
It is noteworthy to point out that through 13 January, Chile directed over 80% of its
grape tonnage for the US to the east coast as compared to 77% last season. The late presence of domestic fruit in the market is the likely explanation for this.
White Seedless:
The white seedless table grape market on the east coast is firming up as a result
of comparatively light Chilean arrivals. Today, Chilean white seedless grapes are
selling at US$ 20-22 for X-Large (700) with some sales higher and US$ 18-20 on
Large (500). We expect to see these prices hold for the next week or more.
With only 400 thousand cases of Chilean white seedless grapes (all varieties
combined) expected on the east coast in Week 3 and another 540 thousand cases
in Week 4, prices will certainly remain firm through Week 4 and little promotional
activity can be expected.
Peruvian Sugarones are also available on the east coast in light supply and they
are trading at US$ 20-24 with some sales lower where quality or condition
warrant.
Remarkably, Brazilian Sugarones are still available in the east, but the market is
increasingly skeptical of this product and it has no real market traction in spite of
the general scarcity of white grapes. Brazilian Festival Seedless are available at
US$ 8 – 10. Sales are even lower for distressed and especially tired fruit.
Red Seedless:
The market for red seedless table grapes has certainly become more active and
less challenging than in Weeks 1 and 2, but it is not as robust as the white seedless
market. The increased activity in the red seedless market has come about in large
measure because of more attractive pricing in the first two weeks of the year. The
continued strong presence of California red seedless grapes, and the generally small caliber Flames from Chile on the spot market, forced sellers to face reality and price product to move. A lot of this backlog has been absorbed by the market.
With 2.2 million cases of Flames arriving in Weeks 2 and 3 and another 1.4 million
expected in Week 4, Flame arrivals will outpace white seedless arrivals by a factor
of two-to-one. The spot market reflects this as it also reflects the fact that
there is still some volume of small caliber Atacama Flames that will arrive and need
to be driven through the market. California red seedless are less and less a factor
with each passing week. Flame promotional activity is also ramping up although more momentum will be needed as Flames from Copiapó, Coquimbo and Aconcagua will overlap in the market come Week 5.
Today, Chilean Flames are selling at US$ 18-20 for X-Large (700) and at $16-18
for Large (500) with some sales higher and some lower. As noted above, Flame
arrival volumes will begin to increase substantially in Week 4. But we believe that
prices will remain stable not only due to promotional activity (which will be
exclusively on red seedless), but also as generally larger caliber fruit arrives in the
market.
Black Seedless:
Black seedless grapes, on light arrivals, have been selling through Week 3 at prices
ranging from US$ 26-28 on X-Large (700) and US$ 24-26 on Large (500). With
more large caliber Flames expected next week, the black seedless prices are set to
come down a notch.
Red Globes:
Red Globes from Peru are available in abundant supply and in relatively light supply
from Chile. Prices for Red Globes are US$ 18-20 for X-Large (700) and US$ 16-18
for Large. The Peruvian product is exceptionally fine looking product.