The global grape market presently finds itself in the midst of substantial transformations, primarily triggered by a series of unforeseen climatic occurrences that have unfolded in key grape-producing regions. California confronts a staggering 50% decline in its overall grape crop yield.
This notable reduction in output can be ascribed to a confluence of factors, including heatwaves, rampant wildfires, and Tropical Storm Hillary's effects. Chile, on the other hand, seems to have weathered the storm relatively well, with its grape crop remaining healthy despite some rain. This is positive news for the market, as Chile plays a significant role in global grape exports. However, given the ongoing volatility in weather patterns, it's crucial to monitor the situation closely.
Northern Peru, another vital player in the global grape market, faces setbacks with a 20-25% drop in crop yield. Early-season adverse weather, including heavy rain and floods, has created unfavorable conditions for grape production. This has led to a decrease in volume and issues with mildew, affecting the quality of sweet globes and straining the grape supply chain.
The increasing frequency of El Niño and La Niña events is undeniably impacting grape production globally, introducing unpredictability into growing conditions. This makes it challenging for growers and customers to accurately predict yields, resulting in a demand far exceeding supply.