Peru grape exports still on the rise

Peruvian grape exports are expected to rise again in 2020-21, according to a new report from the U.S. Department of Agriculture.

7480311D-45A3-4763-B5B4F5B54D7C503E.png
7480311D-45A3-4763-B5B4F5B54D7C503E.png
(File photo)

Peruvian grape exports are expected to rise again in 2020-21, according to a new report from the U.S. Department of Agriculture.

The annual report on Peru’s deciduous fruit from the USDA’s Foreign Agricultural Service said the country’s grape exports grew in 2019-20, despite the economic recession caused by the COVID-19 pandemic.
For 2020-21, Peruvian grape exports are forecast at 412,000 metric tons, up 2.5% from the year earlier.

The U.S. is the top market for Peruvian grapes, accounting for 38% of Peruvian grape exports in calendar year 2019, the report said. After the U.S. (38%), the big customers for Peruvian grape exports are the Netherlands (15%) and Hong Kong (10%).

Favorable outlook

Peruvian grape production is forecast to reach 665,000 metric tons in marketing year (October 2020 to September 2021), a 2% increase over the previous year. “Favorable weather conditions, plenty of water supply, and growing demand are driving this increase,” the report said.

Long days of sunlight and dry conditions make Peru an ideal grape-growing region, according to the report, and allows Peruvian growers to mature vines 55% faster than in neighboring countries.

With about 78,000 acres of table grapes in total, the USDA said Peru’s output is mainly located in Ica (41%) and Piura (22%). Grape harvest begins in late October and ends in April. While the report said the red globe variety dominates production and is popular in the Chinese market, the report said Peruvian growers are shifting toward higher value varieties to supply other markets. Peruvian grape exports to the U.S. typically peak between December and January due to seasonally higher prices, the USDA report said.

The cost of growing grapes in Peru is second only to blueberries and requires an initial investment of about $43,000 per hectare, apart from land costs, according to the report.

The Packer’s Peru Coverage

The Packer’s Grape Coverage

The Packer logo (567x120)
Related Stories
President and CEO Xavier Equihua reveals how targeted digital coupons, retail media and synchronized demand-generation tactics help drive sales and engagement at retail.
The Peruvian Avocado Commission is targeting long-term growth in the Midwest, where Avocados From Peru has been named the “Official Avocado” of the Cincinnati Reds, a sports-centric marketing strategy aimed at tapping into an underserved market with “tremendous potential” to attract new consumers.
At the recent Washington Conference, panelist Rochelle Bohm of CMI Orchards warned the “exorbitant” fees associated with EPR compliance will quickly swallow up what little financial breathing room produce companies have left.
Read Next
From H-2A wage rules to state regulations, the produce industry says escalating labor costs are eating into grower profits and reshaping the future of specialty crop farming.
Get Daily News
GET MARKET ALERTS
Get News & Markets App