When it comes to volume, Peru is not one of the largest shippers to the UK, but the timing of its grape arrivals makes it an important supplier.
Unlike Peruvian asparagus, which is exported for much of the year, the Peruvian grape deal is a relatively short one. Harvesting begins in mid-October and the season is over by late January.
The season kicks off with the red seedless variety, Flame. This is followed by white seedless grapes and later varieties to come on board are Red Globe and Crimson.
Capespan has imported Peruvian grapes for three years and handles supplies during the November to January period. The 2005/06 deal will represent the first time Capespan will trial Crimson grapes. First volumes are due to arrive in mid-January.
Capespan works with three Peruvian growers, all based in and around the fertile Ica Valley. This area is located 300km south of Lima in the Peruvian coastal region.
“Ica is in a true desert area with no measured annual rainfall,” says Capespan’s Geoff Green. “The fruit starts being packed mid-October and the quality of the Flame Seedless is excellent. Therefore, Peru is reliable, fills an important gap in the market and the farms are well managed with first class packhouses.”
Green notes that the grape industry is expanding, particularly on the varieties Red Globe and Crimson. “I think as growers get to know the new varieties better and how to grow them, they will probably find more opportunities in the UK,” he says.
It takes over three weeks for Peruvian grapes to make the journey to the UK. If loading and unloading times are also factored into the equation, that adds an extra week.
However, Green believes the Peruvian industry can grow, although it does face some significant challenges.
“The logistics at present take longer than they should and limit the opportunities,” he notes. “I also believe the production per hectare needs to improve and growers do need to learn from other countries how to get even earlier production.
“Peru will not develop to the same size as other southern hemisphere grape producers, certainly not in the foreseeable future,” Green says.
“I think the days of grape industries expanding as quickly as they did are over. I think cautious growth is what we will see from Peru, filling gaps rather than being head-on competitive.”
One company that enjoys good links with the UK is ECO Farms. The Peruvian grower is in its seventh year of operations and produces red and white grapes in Ica.
ECO was one of the first companies in Peru to grow table grapes, according to Henry Eichler, president of Agricorp USA, ECO’s marketing division.
Agricorp USA is based in Miami, Florida and Eichler believes that having a stronghold in the US, as well as Peru, provides significant benefits. “We enjoy an international perspective and can adapt to different challenges,” he notes.
In the UK, ECO works with Richard Hochfeld Group and Grapes Direct to supply Tesco and Sainsbury’s.
Flame Seedless is the first variety ECO harvests and volumes came on-line at the beginning of November. “We’ve had good success with Flame this season, everyone’s liked the quality,” Eichler says.
He notes that the UK is one of its major customers and depending on market conditions, the market can absorb as much as 70 per cent of his volume.
The US is also a keen taker of Flame, but because of an overhang of Californian Crimson this season, growers, including ECO, have diverted more of their fruit away from the US and towards the UK.
Flame is followed by white seedless grapes and Eichler notes that normally there’s a two week gap between the two. However, the white seedless grape deal began early this season and came on line just a few days later than Flame.
“We analyse all markets carefully and this season we adjusted our strategy,” says Eichler, adding that despite some competition from Brazil, prices have remained strong in the US, enabling it to make a mark there.
In the UK market, the white grape deal also depends on what Peru’s competitors are doing. “Geographically, South Africa is more desirable as grapes don’t have to travel as long so when they enter the UK, we move away,” Eichler explains.
ECO estimates that that around 10-20 per cent of its white grapes will be shipped to the UK this season.
The company also ships Red Globe to the UK and while Eichler notes this grape is still being targeted at a niche audience, its popularity is slowly beginning to grow.
“Red Globe has traditionally been popular with South East Asian cultures, as well as enjoying favour in Spain and France,” Eichler says. “The cultural diversity in the UK also means there’s an audience there.”
ECO began harvesting Red Globe in late November and as well as shipping this variety to the UK, it will also target Germany, Scandinavia, Spain and the US.
In terms of future trends, Eichler believes that the UK, similarly to the US market, is showing more demand for red seedless grapes. “There’s a lot of media coverage about the level of antioxidants found in grapes and grape juice and that could be having an effect,” he notes.
When talking to any producer about the UK market, it’s guaranteed that the majority will talk about stringent demands and specifications. “We get visited by retailers and category managers and they hold us to a pretty good standard,” Eichler says. “I appreciate that challenge, it makes us better at what we do. Only a handful of Peruvian growers can ship supermarket quality grapes, especially the seedless varieties.”
ECO is a family run business and Eichler believes that this closeness enables the company to run efficiently. “We have a lot of technical knowledge and our man in Lima, Jack Schwartzman is on top of every single detail to cover all eventualities,” he says.
“It takes years of experience to understand the micro-climate and we’re building on that knowledge internally and seeing it grow. We’re very confident in our growing abilities.”
This season, ECO will pre-pack grapes in punnets at source for the first time. The firm is to pack grapes for the Tesco Finest range and will provide both red and white varieties to give consumers more choice. “We’re adding value to our customers by packing in punnets and it also gives us the opportunity to show off our exceptional fruit,” Eichler says.
“We’ve got some virgin land and over the next couple of years, we’re looking to take a more aggressive position in expanding our volumes,” he adds.
