White seedless supplies from Egypt, Israel and Morocco were all a little lighter than many were hoping for and, instead of pushing through supplies before the increased duty kicked in on July 15, Egypt was off the scene a good fortnight before that date this year.
One of the main reasons for this has been a very strong market in continental Europe for white seedless fruit this year. “We have seen real competition from the Scandinavian countries, Germany and Russia this year,” says one importer. “It is not just because of the relative strength of the euro to sterling, but also because I believe we are starting to see a real change in eating habits on the continent and a shift in preference in favour of seedless.”
The main knock-on effect is that with less strict quality specifications in the continental markets, some Egyptian suppliers have been sending grapes to them early in the season at a brix level of 14, rather than waiting for their fruit to reach the level 16 required by UK retailers.
“This is the first year we have really seen such big volumes going to the continent and having this impact on the UK,” says the importer. “We have had hardly any volume from Israel, for example, and although there was more fruit from Morocco, it was not enough to satisfy demand because Egyptian supplies were light and then finished early because of the uptake from the continent for fruit before it met our spec.”
Another trader has been very pleased with Egypt’s performance. “The quality has been really nice and, as a source, I think Egypt is getting better and better,” he says.
The market situation was challenging at the end of the Indian season and fruit was airfreighted from Mexico, some of it of mixed quality, which receivers believe was damaging for repeat purchase.
The market is now moving out of Middle Eastern and North African supplies, and all eyes are on Italy and Spain as many traders have been left with empty stores, and are almost hand to mouth trying to get fruit from Italy.
The main Spanish production region of Murcia was hit by rainfall two weeks ago and, while supplies are coming through, exporters are warning that availability could be a bit patchy over the coming weeks. “It rained in Spain most of the week when really the season should have been getting going,” laments one supplier. “The yields appear to be heavy, but the sugar accumulation has slowed.”
The next three weeks will be dominated by the two sources, before Greece is expected to come on stream around its traditional start date of August 15. Reports so far from the country say that a mild heatwave earlier in the summer has done fruit no harm and that vines are heavy with grapes. The only possible issues are size and water availability. “Some senders might struggle a bit on berry size, especially in the lowland areas, where fruit is sizing up on the small side, but in the higher growing areas further up in the mountains that should be less of an issue,” explains one trader. “But what everyone is really discussing is problems with getting sufficient water to the crop.”
The picture on red grape has been largely quite stable since the latter part of the Chilean season, with supplies from the South American source dovetailing well with Egypt, and Mexico on hand to fill any gaps. Spanish Crimson is expected to come on stream by the end of August. The period before then is looking a little patchy, however, with the Murcian rainfall worrying some receivers.
“Between the end of the Egyptian Flame and the start of Spanish Crimson, we should have Spanish Flame, but it is very susceptible to rain and, while it should be coming into the start of its season, these next three weeks or so are likely to be a bit tricky,” says one importer. “Once we are into Spanish Crimson though, it should all be set fair.”
This quarter, the inclusion of grape lines in various retailer price and healthy eating promotions, with tickets of £1 a punnet and right down to 67p a punnet in Aldi, has characterised the period. “I think it’s good as it is increasing penetration and taking grapes to a lot more people, including those that would not usually buy them,” says one sector analyst.
But not everyone agrees, and another importer believes this is actually damaging the market. “I know that there is a lot of inflation in the business, and a lot of retailers are looking to deflect this away from their customers,” he says.
“This is what is underlying some of the really aggressive promoting we have been seeing out there, but it means people are really wondering about the true value of grapes and what they should actually be paying for them. I think this could be more damaging in the long term if it becomes a real fixture of the category - just ask the banana sector.”
As far as the next quarter and beyond is concerned, reports are for bigger volumes from Brazil in the October to November window, and so far some good growing conditions in southern Africa with some cool winter temperatures and full reservoirs bode well for December and beyond.
Looking further ahead, the long-term picture is for more red grape to come out of Egypt, and Moroccan growers too are working hard on perfecting production of Crimson, a notoriously difficult variety to cultivate.
And this quarter has shown again that demand for black seedless fruit continues to grow. “As much as we can get, we can sell,” says one delighted trader.
The market is clearly still being driven by coloured types, and sales in punnets are fuelling growth too. An analysis of sales data by one importer shows that the market for white fruit is now running at a 53 per cent market share, while red, black and mixed punnets of fruit can lay claim to a 47 per cent share.
The advent of the discounters and the pressure they are putting to bear on the major multiples is certainly one to watch for the whole produce sector, but in grapes it has special resonance as the discounters tend to favour punneted fruit.
“The problem is that for punneting to be cost-effective, it really has to be done at source and, in the southern hemisphere, it is reaching capacity,” warns one trader. “I don’t think that punneting really can grow much more as it will be difficult to get the values required if there is not the capacity to do it at source.”
Some marketers are also worried that grapes are losing out when it comes to shelf space. Multiple retailers are increasingly putting grapes in the chilled section of the produce aisles in order to address wastage problems, but this means that the space given over to the product is significantly lower.
“I think grapes are therefore losing out to other seasonal lines at this time of year, such as stonefruit and melons,” says one marketer. “This will definitely be one to watch - it will be hard to grow the market further from reduced shelf space.”
TECH KNOW-HOW WITH SAVIAGRAPES
Chile’s saviagrapes has just launched a new product allowing longer storage time and lowering shrink on table grapes, writes Manuel José Alcaíno, agricultural engineer and president of Chilean exporter Decofrut.
The technology has been presented to representatives from Wal-Mart, Chiquita, Dole, Unifrutti, Fisher Capespan, Jac Vandeberg, The Oppenheimer Group, William H Kopke, and Zespri, in presentations at the eastern US ports of Wilmington and Holt.
This technology has been in development since 2006. Originally conceived by Chilean biochemist Gaston Garcia from the Universidad de Chile, the SaviaGrapes process was brought into commercial production last year. About 20 containers of Chilean grapes employing this technology were shipped at the end of April to various global markets.
During the presentation, attendees were able to compare shipments of Thompson grapes sent with the new device, as well as shipments sent without it, after both spent 12 hours in ambient temperatures - simulating retail conditions. Results showed significant benefits for the shipment using SaviaGrapes’s new technology.
With the use of SaviaGrapes, you can extend the life of the grapes between 30 to 50 days, depending on the variety, thus maintaining and extending the freshness of the fruit. The effects produced by the extension of the life of the grape increase the time importers can market the fruit. This may help to stabilise prices and provide the possibility of better returns, especially in late grapes.
SaviaGrapes is a paradigm shift of post harvest, replacing the more traditional concept of slowing the fruit breakdown once grapes are picked with a revolutionary concept of keeping the grapes ‘alive’. The system consists of a capsule with a gel resembling natural sap, which is inserted or plugged into the grape bunch immediately after it has been picked. This capsule nourishes the bunch, as if it had never been removed from the vine.
It mimics vine conditions. The grapes retain their flavour, texture and quality virtually intact, as if they are freshly picked, for an extended period of time. The main effect is the green colour of the stem, but other positive effects include less shatter, fewer sunken cup stems, and less decay.
The technology is recognised by the US Food & Drug Administration in the Generally Recognised as Safe (GRAS) component list. It combines high technology with an environment-friendly system. This technology will create fantastic marketing opportunities, better shipping planning, reduction of shrink at retail level, and greater tolerance to storage conditions.
So far, industry members who have witnessed this technology are very excited about its potential. We are looking forward to helping retailers and wholesalers provide an even better quality, fresher table grape to their customers.
Currently, we have been contacted by several UK receivers interested in running trials in Greece and Italy with some of their growers. We are also developing our network in South Africa and Australia as well, so we can reach the UK market year round.
SaviaGrapes must be envisaged as a technology from Chile to the world, available for all table grape growers who are seeking differentiation in their produce and a better return. Using SaviaGrapes you get the potential to maintain fresh stems and decrease shatter and decay, thus extending shelf life significantly and storage by up to 60 days.
Grape-producing countries such as the US, South Africa, Spain, Turkey, Greece and Brazil could all use this new technology. This summer, commercial grape marketers around the globe are already testing it.
We still need to work with consumers, but I am sure we will get significant support from our research. My prediction is that in three to five years, SaviaGrapes will become an industry standard for the whole world.
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