Chile reflects on challenging table grape season

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Chile reflects on challenging table grape season

With the Chilean table grape export season winding down, a Santiago-based market intelligence consultancy reflects on a season it says has been 'far from easy' due to various culminating factors.Ā uvas_57366178sq

Decofrut said by the end of week 13, shipments had surpassed 70 million boxes, or about 559,000 metric tons (MT), putting them 4% higher than the same week in 2014.

Of the total, 56% was sent to the U.S., 22% to the Far East, 13% to Europe, and 7% to Latin America.

The devaluation of the euro against the U.S. dollar meant some volumes that would normally have been destined for Europe were sent elsewhere, particularly North America. Europe-bound exports were 13% down year-on-year while shipments to the U.S. grew 9%.

In addition, shipments to Latin America fell by 10%, while those to the Middle East rose by 61% during the campaign.

In terms of performance, Decofrut said the season began relatively well with good prices, largely as a result of lower Californian production, but it was later complicated by several issues that led to lower prices than 2013-14.

"As an example of some of the difficulties that the Chilean grape sector faced, there were the U.S. West Coast port strikes and, consequently, an over supply on the East Coast," the report said.

"The industry also struggled with a supply that was concentrated with small and medium size berries, particularly for the Flame Seedless variety, and there were issues with Thompson Seedless which often arrived with condition problems and a high proportion of amber grapes."

The report also highlighted that the harsh winter undoubtedly had affected the consumption and sales of Chilean grapes, as well as logistical aspects.

In addition, there were heavy rains in Chile during week 13 which are said to be generating speculation as to the arrival condition of fruit harvested after the rains.

"This is mainly affecting the Crimson Seedless variety, for which there is a certain degree of volatility in terms of how the fruit's market will be developed in the month of April, which is making sale price projections uncertain, since they strongly depend on the arrival condition," the report said.

"In addition, the likely early harvests of grapes from Mexico and the Coachella Valley [in California] must be taken into account, as they could mean the Chilean season ends in the month of April."

The report added that the North American market was in a transition phase to white seedless grapes in storage, which has come somewhat earlier than previous years, despite the abundant East Coast supply. It said this was most likely a response to the demand for grapes of good quality and condition.

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