Univeg: Grape production in India expanded to 1,700 hectares

For a long time, Univeg has seen potential in the Indian market. About three years ago, the multinational signed an agreement with Bayer CropScience with the aim to improve grape production in India. To become better acquainted with the Indian and global markets and continue its expansion, a joint venture was created in 2014 with Mahindra.

Ben Horsbrugh, Quality Manager at Univeg Group, affirms that the partnership with Bayer CropScience has so far been satisfactory. "In recent years, we have been able to achieve our goals and to further develop the services for the growers. The project started with 270 hectares and the acreage has now expanded to over 1,700 hectares. 795 producers currently take part."

"For 2015 and the coming years, our goal is to further improve the quality of production. We are not only focused on crop protection and the reduction of residues, but also on factors such as growing practices, use of fertilisers, and processes during the harvest and packing. The goal is to help all partners in the supply chain, allowing us to monitor the entire production process. With this, we want to ensure that only the best quality grapes reach the consumer, but in a sustainable manner."

Sustainable production

Univeg and Bayer CropScience have also been working together on projects in Chile and Spain. For grape production, Bayer has developed a passport in all local languages, which helps the growers produce sustainably. As a result, retailers have access to fresh fruit and vegetables that meet the strictest European requirements in terms of food quality, safety, traceability and sustainability. "We provide the associated grape growers with advice and technical services. It is our goal to obtain a quality production in a sustainable manner in both environmental and financial terms."

Gap in the market

This season, Univeg expects a normal volume of good quality fruit. "The yield will be of around 37 tonnes per hectare, which is good," says Ben. "The most advantageous aspect for Indian grapes is that they can fill a gap in the European market in April and May. In those months, the availability of grapes from other countries, such as Chile and South Africa, is limited. Since the Indian grape sector also has the ability to export in February and March, the season has extended in recent years. The results have been good, despite competition from other countries. Market conditions change every year; they depend on several factors, such as the harvest volumes in each country and the demand per customer."

Growing exports

In 2014, India exported a total of 7,724 containers of grapes to different markets. "The majority of the grapes are intended for export, but also the domestic market is becoming increasingly attractive in India," states Ben. "In the first year, Univeg exported 52 containers of Indian grapes, a figure which increased to 250 in 2014. The main buyer for Univeg is Europe, which receives approximately 80% of the shipments. The top three European customers are Germany, the United Kingdom and the Netherlands. New markets such as the Middle East and Asia are also attractive for Indian grapes. "We think that these markets will increase in importance for Indian grape exporters. Currently, grape exports to the Middle East reach an average of 1,200 containers per year, while the Far East receives 500 containers per year."

Future opportunities

The main variety currently grown in India is the Thompson Seedless, but Univeg also sees opportunities for new varieties in the future. "India is a growing and dynamic market for fruits and vegetables and it will continue to evolve. In April, a joint venture was signed between Mahindra and Univeg. The joint venture focuses on the development of the fruit and vegetable chain to be able to meet the needs of the local and international markets. Ben: "With this joint venture, Univeg can develop in the Indian market and contribute to Mahindra in the field of know-how. We see great potential in India and we wonder how this market will develop globally in the coming years."

More information:

UNIVEG Headquarters

Strijbroek 10
2860 Sint-Katelijne-Waver
Belgium
T: +32 15 32 42 00
F: +32 15 32 42 01
E: info@univeg.com
W: www.univeg.com