Southern grapes facing constant challenges

A new campaign for the southern grape ended, with a new expansion of Peru. South Africa maintained its export level; Chile and Brazil reduced them slightly, due to climate problems. Regardless of these variations, there is no doubt that the grape is one of the most successful fruits of recent decades. To achieve this, varietal, logistical, productive and commercial challenges had to be faced. Some of these have been overcome, others still have to be faced.

Patented Varieties

Commercial grape production is one that has recorded the most varietal changes. To the point that current trade is almost only seen with patented grapes. It is no longer a competitive advantage to have them, but rather it is a condition to be able to participate in global trade. Some countries were ahead of the curve and achieved it in record time. Such is the case of Peru and South Africa; 75-80% of its current exports are patented. In other countries, renewal was difficult due to cost problems or because they had large areas of traditional grapes, such was the case of Chile and the Mediterranean.

Destination Diversification

The two traditional markets for southern grapes were the US and Europe; receiving 90% of shipments. But growing competition between suppliers and the expansion of local production made these destinations more complex and reduced the possibilities for commercial growth. Destination diversification is not an easy task, as demonstrated by the data from the campaign that has just ended. In it, the US still prevailed as a destination, which received 50-55% of the Peruvian and Chilean shipments, and Europe, which received 80-85% of the South African and Brazilian shipments. The two regions that are emerging as alternative destinations are Asia and Latin America. The countries of the Far East and Southeast Asia are demanding in terms of quality and health; Even so, increasing volumes are being located in countries such as China, Japan, South Korea, Thailand, Singapore, Indonesia, Vietnam and Malaysia. Latin America also presents itself as a good opportunity. Such is the case of Mexico, which buys 9% of Peruvian grapes. Other countries that increased their imports are Colombia, Argentina, Brazil and Central America (Guatemala, Panama, Dominican Republic).

Logistics Challenge

Grapes are one of the most perishable fruits, which is why logistics continues to be a very complicated point, despite the constant progress being made. It is not easy to maintain the cold chain, carry out phytosanitary treatments (fumigation, cold, application of products), achieve perfect coordination at loading and unloading ports, avoid ship delays, etc. Peru and Chile have made significant progress in reducing associated complications. But in the case of South Africa and its dependence on the port of Cape Town, it remains one of the great obstacles for its grape business.

Climate Change

The increasing volatility and unpredictability of the climate, with the increasingly frequent extreme weather events, present a real headache for the sector that handles a fruit that is very sensitive to these alterations. An example of this is the threat of a new Super Niño in Peru. Another is the heavy rainfall that South Africa and India are suffering, flooding plantations and destroying access roads. This requires having more than one supplier, being flexible in campaign planning and having alternatives in the event of unforeseen events.

Concentrated Campaign

The grape campaign is concentrated in about 3-4 months. Peru registers its highest exports between October to January, South Africa between December to February and Chile between January to April. Therefore, they are very intense months of work and dedication. Expanding the campaign is difficult, due to the agro-climatic conditions that the crop requires. Added to this is that the advance or delay does not generally mean such a clear commercial advantage, as there are other suppliers occupying the markets at that time. Only occasionally is it attractive to have very early or very late grapes. This would be the case when the northern hemisphere ends early (California or Italy) or when the start of the new harvest is delayed (Mexico or Egypt).

Therefore, grapes will continue to be a good business for the countries of the southern hemisphere, but it requires constant effort, search for better alternatives, increasing efficiency and productivity, etc. It is not a business that allows you to give up, you have to always be vigilant so that it remains attractive.