World table grape market

  • Published on 30/01/2014 - Published by BENOIT-CELEYRETTE Cécilia
  • FruiTrop n°218 , Page From 66 to 70
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In an adjustment phase?

The world table grape market, very buoyant just a few years ago, does not seem to have kept all its promises, in spite of the varietal revolution underway with seedless grapes. However, these varieties have enabled its market shares to hold up in traditional destinations such as Northern Europe. However, emerging markets, such as China, have more demand for varieties such as Red Globe, which is forcing traders into handling a diversified range in order to retain a broad customer portfolio; that is what it takes in an economic crisis.

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Summary

More rational production

In recent years the table grape was still one of the few fruits of which many were expecting significant development. Hence a host of research bodies worldwide have worked and are still working on new varieties to enrich the range, develop and adapt the white, pink or black seedless varieties. Deseasonalisation and growing demand from emerging countries actually encouraged predictions of considerable growth in purchases, both in traditional destinations (Europe, United States) and in Asia or even South America.

However, while world table grape production grew considerably until the mid-2000s, the curve changed direction from 2005, and is now rising practically exclusively in line with Chinese production. The supply is continuing to develop in this country to feed the local market (7.2 million tonnes), which is growing by approximately 10 % every year. Volumes also grew a bit more in several Southern Hemisphere countries in recent years (South Africa, Peru, Argentina), in order to satisfy the requirements of emerging countries, or even of certain countries from the Mediterranean Basin, such as Morocco (+ 5 to + 10 % in recent years). Yet surface areas have rather stabilised in most of the production zones, including in Chile or India. The potential is even falling in certain zones, especially in Europe (1.7 million tonnes in 2012 for the EU-27, as opposed to 2.4 million tonnes in 2005).

Grape production p68
Grape production p68

Still some opportunities in emerging countries

So the fall in demand on the traditional markets and the growth of production in the emerging markets have held back shipments, in spite of the efforts made in production to adapt the varietal range to the requirements of demand. So world exports are stagnating at around 3.8 to 3.9 million tonnes, i.e. 16 % of the production potential. Europe is still the main destination, absorbing 55 % of shipments, yet with a big share (900 000 t) traded within the EC. However, trade volumes are stagnating, whether within the Community or from third countries (570 000 t). Similarly, after rising considerably until 2008, demand slumped on the Russian market where imports have now been fluctuating for three years at around 400 000 t. Nor is the North American market an exception to the rule, though it was already close to maturity before the economic crisis. However, flows are still increasing to Asia (+ 69 % in 5 years) and even to South America (+ 88 % in 5 years) with the entry into force of numerous association agreements. There has also been considerable growth in Africa (+ 76 % in 5 years), though small trade volumes are involved.

Grape World p 69
Grape World p 69

South-East Asia in the cross-hairs

So most growth from recent years is attributable to South-East Asian countries, and especially to China (Taiwan, Hong Kong and other provinces), which in total absorbs 280 000 t, primarily from the United States and Southern Hemisphere countries. Volumes are mainly aimed at the provinces in the south and east of the country, since the more northern zones are supplied primarily by local production at more attractive prices. The Red Globe variety dominates the supply. Seedless varieties (Scarlet Royal, Crimson and Thompson Seedless), although growing, are still niches. Imports have also grown in recent years to other South-East Asian countries, especially to Thailand (58 000 t, + 139 % in 5 years), Vietnam (46 000 t in 2011, + 146 % in 5 years), South Korea (45 200 t, + 63 %), Malaysia (27 400 t, + 17 %) and Indonesia (55 800 t, + 104 %). To compensate for the stagnation of the traditional markets, exporters have also in recent years targeted countries in the Middle East, especially Saudi Arabia (32 000 t) and the United Arab Emirates (27 000 t), though demand remains fairly fixed. However, the supply is regularly extending to the countries of the Mediterranean Basin, such as Morocco (800 t), Algeria (4 000 t), Libya (2 200 t) or Egypt (1 600 t), though the tonnages are still fairly restricted compared to the other big markets. Hence South American exporters are now refocusing on nearby markets such as Mercosur, where demand is on the rise. Brazil, for example, imports no less than 34 000 t of grapes, primarily from Argentina and Chile. Flows have also been established to Central American countries (Colombia, Ecuador or Mexico).

A necessarily diversified customer portfolio

So in this context, it is important for exporters to maintain a wide range of customers. Chile is still by far the world’s leading table grape exporter, with a potential of 800 000 to 812 000 t primarily aimed at Northern Hemisphere countries, especially the US market (350 000 to 400 000 t) and Europe (160 000 to 170 000 t to the EU-27 and 30 000 t to Russia). However, in recent years, its shipments to the South-East Asian markets have grown, reaching between 70 000 and 95 000 t.

Similarly, Europe is still a major outlet for South African grapes (170 000 t to the EU-27 and 10 000 t to Russia), but exports are growing to South-East Asian countries (30 000 to 33 000 t) and the Middle East (12 000 t).

Peru has also rapidly developed its exports with a diversified portfolio: 40 000 t to the EU-27, 31 000 t to China, 27 000 t to the United States and 17 000 t to Russia. In addition, it is going to step up its presence in Asia (China, Hong Kong, Taiwan and South Korea) and Colombia, as well as eleven new destinations opened up in 2012, such as Brazil, Norway, Canada and Venezuela.

Similarly, the United States is not easing up, and is planning to target 25 countries in its marketing campaign. Most of the volumes are for the moment shipped to Canada, Central America, China (Hong Kong) and Indonesia.

However, European production is mainly dedicated to the European market, since the varieties produced, whether Italia, Aledo or Muscat, are for the most part consumed locally. Nonetheless, the supply of seedless grapes has expanded (Crimson Seedless, Sugraone, Flame, etc.), especially in Spain, and to a lesser degree in Italy, though it remains earmarked for Northern European markets, also with the objective of extending the production calendar. Similarly, the Red Globe supply has strengthened in Italy, though it is primarily earmarked for the European market. Extra-Community exports represent approximately 13 % of the total, and are primarily focused on neighbouring countries (48 000 t to Russia, 27 000 t to Switzerland and 12 000 t to Norway), or on the Mediterranean Basin countries (2 000 t to Algeria, Libya or Saudi Arabia).

Grape World p70
Grape World p70

  • Grape production p68

    Grape production p68
    Grape production p68

  • Grape World p 69

    Grape World p 69
    Grape World p 69

  • Grape World p70

    Grape World p70
    Grape World p70

  • Raisin de table-Monde-Production

    Raisin de table-Monde-Production
    Raisin de table-Monde-Production

  • Raisin de table-Monde-Export

    Raisin de table-Monde-Export
    Raisin de table-Monde-Export

  • Raisin de table-Monde-Importations

    Raisin de table-Monde-Importations
    Raisin de table-Monde-Importations

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