Peru is wrapping up a challenging 2023-24 table grape season, hit by extreme weather conditions throughout producing regions.
Alejandro Cabrera, general manager of Provid, told FreshFruitPortal.com that rough weather conditions started a year ago.
Cyclone Yaku in early March 2023 caused damages estimated at $630 million in northern Peru. The event brought strong winds and rain for weeks, which lowered table grape production volumes by 30%.
"We also had El Niño, which brought higher temperatures. That is why we had a very warm winter, or rather, we did not have winter in Peru last year," Cabrera said.
This directly impacted the crops' yield per acre and resulted in smaller grapes.
"In week 12, we had a 12% drop in exports year-on-year," Cabrera said. "Last season, in this same week, we were at 71.1 million 8.2 kg boxes and this season in week 12, we are at 62.4, which confirms what we pointed out last November, when we predicted a drop in volume."
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From a commercial perspective, the main concern for Cabrera relates to the drought in the Panama Canal, with has reduced transit.
"That would mean that ships could not move freely to reach the East Coast of the United States, which is our main destination," he said. "So, there was obvious concern there. But fortunately, the shipping lines that work with Peruvian producers have contingency plans. They had specific shifts to go through the canal, which allowed shipments to move forward."
Long delays for shipments heading to Asia posed another challenge during the season. Cabrera said he heard from producers who had fruit in transit for up to two weeks longer than usual.
This season has seen higher prices for exporters compared to other years, Cabrera said.
"In the United States, our main destination market, supply was low not only because of Peru, but also Hurricane Hillary in August 2023 that hit California, reducing their production by an average of 30 million 8.2 kg boxes," Cabrera said.
Cabrera emphasized, "We have to be very direct and honest with this. Prices have not gone up because we have done something different. They have gone up because this is supply and demand, and we are governed by a free market. When supply decreases and demand is maintained, prices go up due to shortages."
In Peru, the region with the highest production of table grapes is Ica with a 56% share of the total supply, followed by Piura, with 32% of shipments. Then comes La Libertad with 4% and Arequipa with 3%.
Regarding table grape varieties out of Peru, Cabrera said that as of week 12, Sweet Globe is the main variety, representing 23% of the country's supply. In second place is Red Globe with 17%, Autumncrisp with 15% of shipments. In fourth place is Allison with 8% of shipments and in fifth place Timpson with 5% of shipments.
"These five varieties account for almost 70% of all exported volume," Cabrera said.
"This season highlights the growth of Autumncrisp with a 33% increase from last season. It is the only variety that grew that much, from 6.8 million boxes to 9 million boxes."
Cabrera said that the main destination market for Peruvian grapes is still the United States, with 46% of shipments, followed by the Netherlands with 12%.
However, he explained, "Mexico took third place this season, with 8.5% of shares, surpassing China, which remained with 7.7%, and then the United Kingdom in fifth place with 3.8% of shipments."
Peru is the second largest supplier of grapes to the U.S. with 32% of the total share, according to USDA data.
Cabrera said all destinations saw a decrease in table grape imports from Peru due to a lower supply. The United States fell by 12%, the Netherlands by 19% and China by 18%.
Mexico was an exception, maintaining almost the same volume of shipments as last season.
Regarding the opening of Japan, Cabrera said the news was significant for Peru.
"We shipped 300,000 boxes and ranked 20th in shipments from Peru during the first year that we had the opportunity to send fruit," he said. "I think during our second season in Japan, the market will consolidate."
The Port of Paracas opened in southern Peru this year, marking a major achievement for logistics in the country. According to Cabrera, this supported fruit exports from the entire southern region of Peru, with the port located close to the operations and packing plants of many producers.
"This is very encouraging news for what may remain to come," he said.
Chile and Peru will join together on Aug. 8, 2024, at the Global Grape Convention to be held at the Casino Monticello Events Center in Chile to discuss the biggest challenges of grapes worldwide.
