Peru strengthens export position on global market of grapes
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Author:pmo82412f
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Published time: 2018-01-02
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Although bad weather has resulted in lower grape harvests in Europe and Turkey, the good harvests in China and India have compensated for these losses. On a global scale, production remains stable at 22.7 million tonnes. Because demand continues to rise globally, export volumes of countries including India, Peru and Turkey also rise. The import will mostly rise because Russia lifted the boycott on Turkish products.
China
The production increased by 400,000 tonnes and amounts to 11.2 million tonnes. In total, the area is 800,000 hectares, and it remains stable for the third year in a row. This has brought an end to the period of rapid growth. In the past 16 years, the area increased by 500,000 hectares. Despite the larger production, the export is lower at 225,000 tonnes. Due to better management, the quality of the fruit increased, as well as the prices. Demand is therefore dropping on price sensitive markets in Asia. It’s expected that import will continue in that upward trend, considering demand for grapes outside of the Chinese season is increasing. With it, demand for import from the Southern Hemisphere also increases. The country is expected to import 250,000 tonnes.
India
With an increase of 216,000 tonnes, the total production amounts to 3 million tonnes this season. Export is increased by a third because of this, which amounts to 272,000 tonnes, because of more sales towards the EU, among other things. Room on that market has been created because Turkey is selling more to Russia, now that the border between these two countries is once again open.
Turkey
The harvest amounts to 2.1 million tonnes, a decrease of 230,000 tonnes, due to frost and hail damage in the Aegean region. Despite this smaller volume, export will amount to 220,000 tonnes because the border with Russia has been opened again.
EU
Due to heavy rain in autumn for the largest grape grower in Italy, the harvest is 216,000 tonnes lower. That amounts to a total production of 1.5 million tonnes. Consumption is 2 million tonnes because of this. Export remains stable at 86,000 tonnes, because losses in the United Arab Emirates and Saudi Arabia are compensated by the growth on other markets in the Middle East and Africa. Due to the smaller harvest, import will rise to 650,000 tonnes.
United States
Due to a slight decrease, production amounts to 935,000 tonnes. The continuing heat in the summer months affected the harvest. As a consequence, export will also drop slightly and amount to 330,000 tonnes. Because of strong trade with Mexico, import will increase to 620,000 tonnes. Additionally, the country also has demand for grapes from Chile and Peru.
Peru
The South American country has maintained its upward trend, and production is increasing to 640,000 tonnes. New plants are entering production, and because young vines are maturing, yield increases. Because of this, the country is strengthening its position as second-largest exporter, after Chile. The export increases by 25 per cent to 380,000 tonnes, mostly due to growing demand from the US.
Chile
Production remains stable at 920,000 tonnes. Despite the large amount of rain and the sufficient number of cold hours, yield is normal. Export is parallel to production.
Russia
Russian imports have seen a recovery and are 50 per cent higher at 325,000 tonnes. Earlier this year, Russia lifted the boycott of Turkish products, so that this traditionally most important grape supplier to Russia can reclaim its position on the market again.