After years of inconsistency, the Spanish grape sector has finally experienced some good growing conditions and is promising a good-quality crop. Murcia, the hub of activity for grape production in the country, has been the victim of irregular weather patterns for the last couple of years, resulting in problems with quality and availability.
Rupert Maude, commercial director of producer and exporter Grupo El Ciruelo, which grows 18 varieties of grapes within two areas of Murcia, says the tide has turned for the industry. “Growing conditions have been very good, whereas last year was a complete disaster. We are now very happy,” he says. “We had some rain in May which did more good than harm, and we are quietly confident of a good season, with good availability and quality.”
Alan Guindi of UK importer Richard Hochfeld Ltd admits there have been problems with Spanish grape supply over the last three years, but agrees with Maude that the situation is on the up. “This year, quality is looking good, but the last couple of years have seen problems with availability,” he says. “We haven’t had enough availability to meet demand, even though Spanish grapes are a better price than the Italian offer, which is on the shelves at the same time.
“But growing conditions in Spain have been a lot better this year, and it has been better all round. We have suffered low sugar levels and straggly bunches in the past, but the fruit is looking a lot nicer, and it may well be the start of a new era for Spanish grapes.”
The Spanish grape season has occurred earlier this year, with El Ciruelo starting to harvest its first crop of white Victoria Seeded on June 27. “To be harvesting in June is very early,” says Maude. “And the season generally has been early. We planted the crop mid-April, and we had very different conditions to last year. It was not windy and we had the right amount of rain. We also had a harsh spring, which has helped.”
Grupo El Ciruelo exports most of the varieties it grows in Murcia to the UK, with Sugraone, marketed under Superior Seedless, Thompson, Prime, Mystery and Princess being its most popular white seedless varieties, as well as red varieties Crimson and Spring Blush, and black grapes Autumn Royal and Sugrathirteen, marketed under Midnight Beauty.
There is a bright future in the production of the increasingly popular red and black grape varieties for Spain, and Maude is making sure that his company does not miss out on this opportunity. “We have been planting high volumes of red grape varieties, and have been taking on some Sun World varieties,” he says, “which we planted this year and will become commercial in three years. The new red variety is Sugranineteen, under the Scarlotta Seedless brand, which is an important development as it finishes the season and extends it to December, when the Spanish grape season usually ends a month earlier.”
As sales in red and black grapes excel, so the white offer levels out, according to Guindi. “The growth of the Spanish grape sector has come from demand for red grapes, such as Crimson, and they are now a really important part of the year for UK retailers,” he says. “The red grape varieties from Spain are really good quality, and they grow them very well.”
Guindi believes many factors can have an influence on the Spanish grape offer. “If UK importers have got strong Egyptian and Moroccan connections it makes an impact on the success of the start of the Spanish grape season,” he says. “One of the problems last year was that we had to wait for the right sugar levels. Nevertheless, while Spanish white grapes can be imported until August, red and black fruit carry on until November, and they store very well.”
Richard Hochfeld sells approximately 90 per cent of the Spanish grapes it will bring into the UK to supermarkets, with the remainder going to wholesale markets. The first substantial volumes of Spanish grapes will make their way onto retailers’ shelves the first week of July. Meanwhile, Grupo El Ciruelo has been holding off its grape supply to the UK in a bid for greater demand. “We will start sending grapes to the UK the first week of July and will finish the campaign in November,” explains Maude. “While the grapes are early this year, we have not been exporting to the UK, because there are better options out there at the moment, and we have not had a great demand from the UK yet, although that should change in the next couple of weeks. Prices have been indifferent, and we have been getting a much better deal elsewhere.
“On the other hand, Spanish grapes are a strong category for UK supermarkets and, this year, production is looking really excellent, so we want to be sure the grapes have the correct sugar levels.”
With the rise in production and distribution costs, which the entire industry is feeling, and more localised problems, such as industrial strikes and licence changes, the Spanish grape sector is going through a time of transition.
One of the main changes this season will be the end of Sun World’s Superior Seedless-branded Sugraone licence in Spain. The licence was overseen by the Spanish exporter group Asociación Apirenas in the Murcia region, which was made up of licensees of Sugraone.
While Murcia Sugraone growers will no longer have to pay a fee, meaning that returns will increase, Maude anticipates trouble is ahead. “The association was a very good way of bringing things together,” he explains. “It pulled together volume levels and information, and made sure growers didn’t sell at the wrong time for the industry. It will continue, but in a different format. But from now on, Sugraone will not be as controlled as it was.”
But this is not where Spanish growers’ problems end. “We have had to trade on a very high level, because of the state of the exchange rate at the moment,” reveals Maude. “The price of diesel has gone up by 60 per cent year on year, and labour costs are an issue, with people wanting more money to do less work. We have also been plagued with the same old issues, like water and weather.
“It is costing growers the same amount of money to produce grapes, and they are getting 25 per cent lower returns - no one is making enough margin to cover that, and so everyone is losing out.
“As an industry, we are discussing the cost of the euro, and we are putting the value of that to the Spanish government. It has had a knock-on effect, and in some cases, as prices have gone down, quality has been neglected.”
Recent strikes by Spanish hauliers over fuel prices have affected the stream of produce coming through from Murcia, and many fear that the action will have a lasting effect on the Spanish industry. “People have no concept of what damage they have done,” says Maude. “All of the industries within Murcia have been affected. It has damaged Spain’s reputation as a trader and people will look for other markets.
“I do not believe in strike action. Discussion and representation will achieve everything - this action was totally unnecessary.”
Guindi believes, while the quality of the grapes is good, that financial problems may bring the Spanish season down. “Production costs are mounting and the exchange rate will make it a very difficult season. Financially it is going to be a tough season,” he says. “We are not sure if we have seen the end of the industrial action, but we hope so.”
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