A two-tier grape market is rapidly developing as importers scramble to find fruit in the right specification for supermarket orders as several sources struggle with sizing and sugar levels, leading the wholesale markets to become awash with poor quality supplies.
The problems are mainly on white grapes, which are retailing at 196p a kilo, while importers report they are paying up to 1450p for 9kg ex-Spain, and that price is rising to 1550p next week. One importer is looking at a 200-300p rise week on week, and he told FPJ: “The fruit is just not there, the market is incredibly short. Retailers are going to have to put their retail prices up.”
High winds in the Murcia region in May and June tore protective plastic off the crops that producers could not afford to replace. The problem now is that berry size is very erratic. “Growers are asking to cut their programmes back and urging us to get supplies from elsewhere, which shows it must be bad,” said one importer. “Meanwhile, the wholesale markets are all flooded with the poor quality fruit that doesn’t meet the supermarket spec.”
The conditions have meant that there is about 25-30 per cent less Sugraone coming forward from Spain than estimated, and that warmer weather recently has been too late to counterbalance the cooler conditions earlier in the season.
There is still some Egyptian fruit in the system, but any Thompson coming on stream going forward will be subject to increased rates of duty, costing importers more.
The situation on red grapes is not as difficult with retail price points at least more in line with costs of bringing the fruit to market. “There is still some Egyptian Flame and Spanish is just starting,” said one importer. “It is retailing at 297-299p in the big four multiples and that’s for product that is 850p delivered for a 4.5kg carton.”
Importers are now looking forward to the start of the Greek season, which they hope will come earlier than its usual beginning-of-August start date. “Even with the weather problems in Greece, about 30 per cent of the crop is not usually exported so there is some extra volume there that could be turned our way if needed,” said one importer.
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