Weekly updates on the grapes market
The European table grape season has been impacted by climate change and prolonged high temperatures, resulting in earlier harvests. The market is currently filled with various fruits from Italy and Turkey, including late-season varieties. For a comprehensive overview of this week's market trends, our experts and the Wikifarmer Marketplace have provided valuable insights supported by pricing data from the German Federal Ministry of Food and Agriculture and the French Market News Network.
Italian grapes still dominate the central European wholesale markets, showcasing a wide range of varieties. The selection is primarily led by Italia, Sugraone, Crimson Seedless, and Red Globe, with various IFG varieties also playing a significant role. From Turkey, Sultana, and, to a greater extent, Crimson Seedless are still available, although they struggled to attract consistent interest due to their higher prices compared to Italian options. Deliveries from Greece, France, and Germany did not progress beyond a supplementary status. Overall, trade remains relatively calm, with traders infrequently needing to adjust their previous price points. In Hamburg, imports from the Republic of Moldova, especially blue Moldova grapes, are priced at €20 per 9 kg carton, while in Berlin, strawberry grapes are selling quickly for €6 to €7 per kg.
According to the Italian service "The Shopping Bag," grapes are currently the star of consumer demand. The sudden drop in temperatures has discouraged consumers from purchasing the remaining summer fruits, shifting their focus towards more seasonal options. As a result, table grapes continue to dominate the market during this period. However, despite their prominence, demand remains relatively low, keeping prices down, especially for Italia grapes, which are selling at an average of around €1.40/kg.
The green packaging revolution might have declined sales
Since the 2024 campaign, consumption of table grapes in punnets has been declining, coinciding with the industry's shift from plastic to new cardboard trays due to changes in the AGEC law, which has been launched since February 2020 in France aiming at a more sustainable food supply chain. This decline, estimated at around 40% for early varieties, is attributed to the increased cost and reduced visibility of the new packaging, which lacks the transparency of the previous RPET trays. Despite stable or lower prices compared to last year, the cost of the new cardboard punnets is twice as high, forcing producers to absorb the additional expense. While bulk sales were expected to offset the decline, they have failed to do so, as consumers accustomed to punnets are not transitioning to loose grapes but instead are choosing other products, further impacting overall table grape sales.
Extreme weather has created instability in the global trade of table grapes
A new Rabobank report indicates that global grape exports hit a four-year low at 4.2 million tonnes due to adverse weather conditions in Europe and the Americas, which outweighed increased exports from Chile, China, and other major producers. The share of exports from the Americas has dropped from 45% to 36% over the past decade, with the U.S. experiencing a decline in domestic production, exacerbated by Storm Hilary. Europe faces similar challenges, including extreme weather and regulatory pressures.
Conversely, China and India have emerged as significant players in the market, with their export volumes increasing by 183% over ten seasons, making up 19% of global exports in 2023/24. Looking ahead, the report anticipates a recovery in global trade for the 2024/25 season as weather-affected countries show signs of improving production, aided by orchard renovations and new proprietary varieties. However, the growing market share of these varieties has led to a decline in their associated retail premiums.