News in brief:
– Strong demand and delayed harvest in Chile drive table grape prices over $30 per box in the US market, with exporters focusing on meeting high demand.
– Chile plans to diversify exports to other markets post-mid-March as US prices are expected to decrease, aiming for strategic market positioning and maximizing profitability.
Chilean table grape exporters are experiencing a demand surge in the US market, driving prices to over $30 per box for all colors and varieties.
Cristian Ferriere, export manager from Acograpes in Chile, attributes this remarkable trend to Peru concluding its harvest 2-3 weeks earlier than usual. This advantageous situation is enabling Chile to maintain high Free On Board (FOB) prices in the US market throughout February, possibly extending until March 15-20.
Ferriere sheds light on the delay in Chile’s grape harvest, citing two primary factors: adverse weather conditions and a strategic shift towards later grape varieties.
The decision to plant later varieties aimed to avoid overlap with Peru’s export season during January and early February. The harvest, currently at 20% of total volumes, is expected to reach approximately 660,000 8kg units this season. Agronomists attribute the delay to a cold spring in Chile’s central region, affecting flowering and fruit growth.
US market dynamics: big gap until mid-March
A significant gap in the US market is anticipated until mid-March when Chilean grape volumes are projected to peak. Ferriere emphasises the necessity of adjusting pricing and implementing promotions in the coming weeks to accommodate higher arrivals. Despite other markets expressing interest, the US remains the primary focus, receiving 70-80% of Chile’s grape volumes due to its willingness to pay premium prices.
Ferriere anticipates a shift in focus away from the US market post-mid-March, as volumes increase, leading to a potential decrease in prices. Chile aims to diversify its exports, targeting European and Latin American markets, where prices are competitive. As the season progresses, the industry plans to explore opportunities in Asia, ensuring a strategic and dynamic approach to global grape exports.
