New Zealand-based international fresh produce group Turners & Growers (T&G) is branching into table grape production in Peru via a 50:50 joint venture with Unifrutti Chile.
T&G, which had already acquired 340ha of agricultural land in Piura for development under the joint venture, is set to start planting grapes with Unifrutti towards the end of this year, with the first commercial harvest expected in 2015.
In a media statement, Alastair Hulbert, CEO of T&G, said the tie-up with Unifrutti was the result of extensive research and collaboration between the two companies, which have been looking at ways to satisfy the global increase in demand for table grapes year-round, and cooperate in a region they see as having “immense” future potential.
“The partnership with Unifrutti makes a lot of sense,” said Hulbert. “They have significant experience in the development of vineyards and infrastructure in South America and have superior new table grape varieties within their portfolio.”
“We currently enjoy an excellent commercial relationship with Unifrutti Chile, and we are extremely pleased to be developing a joint venture with a company of such high calibre in the South American region.”
Over the past ten years, Turners & Growers’ Lima-based subsidiary Delica South America has developed a table grape trading business serving Asia and other global markets, but the operation had been looking for quite some time at how it could extend its position beyond trading to secure more control over supply and better serve its global customer base. The joint venture marks an important move into production, and towards vertical integration.
“With this investment, we’re becoming more vertically integrated in table grapes, which we believe is key to securing a strong position in the category, whilst expanding on the solid base we have already established with Peruvian grower partners,” said Hulbert.
T&G acquired the land in Piura for planting grapes after a careful selection process, T&G executive Nick Fitzpatrick told Asiafruit. “We believe that with its unique supply window, the soils and growing conditions and the access to water and labour, Piura is the logical choice to plant table grapes,” he said.
As a leading Chilean grower-packer-marketer with a long history in table grape production and a well-known brand, Unifrutti brings the technical expertise to run the operation, which will also employ local Peruvian managers, Fitzpatrick noted. Unifrutti also has a focus on developing new table grape varieties through its nursery operation Univiveros.
Unifrutti had been seeking to invest in Peru as a priority, but the Chilean company struggled to find the right partner locally, according to executive vice president of Unifrutti Chile Jorge Massanes.
“Our commercial relationship with Delica and their top management, plus their experience in Peru, made T&G the perfect partner,” he said. “Table grapes are one of our key products and through this partnership we'll be able to better service our clients by expanding our shipping season.”
For De Nadai Group-owned Unifrutti, the new Peruvian plantation adds to existing farming operations in the Philippines, South Africa and Chile.
Seedless shift
While Peru’s table grape plantings have been dominated by the seeded Red Globe variety to date, Fitzpatrick told Asiafruit the new operation would have a focus on seedless varieties for a range of markets.
“Our goal is to fit out the farm with a mix of red, black and green seedless varieties, as well as Red Globe,” said Fitzpatrick. “We don’t necessarily see the majority of the production going to Asia – we can see a decent amount going to the UK, Europe and the US too.
'The idea is to have a more programmed business. Combining with Unifrutti’s expertise and sales network makes for a strong proposition on the table grape business.'
T&G’s new commercial strategy, announced earlier this year, focuses on building a 12-month supply of key categories internationally – topfruit, table grapes and kiwifruit. The company said these categories presented the best opportunities for increasing integration and value.
