Agronometrics in Charts: Peruvian Grapes Bridging Supply Gaps Left Behind By Hurricane Hilary

A few weeks ago Peru kicked off its table grape campaign for the 2023-2024 season. Volumes from Ica are tracking closely with the numbers from the 2022/23 season. However, there’s a significant increase in average pricing due to limited supply, largely impacted by Hurricane Hilary’s effect on table grape production in California which left the spot market with limited product. This has led to the market seeking grapes from Peru at favorable prices. Customers have been turning their focus to Ica as their preferred source of supply. The current estimates for Peru production, according to Alejandro Cabrera, General Manager of Provid, are remarkably similar to those of the previous season at 71.4 million boxes.

In April, Peru officially surpassed Chile as the top grape exporter in South America, with a 40,000-ton difference, indicating a 7% volume lead and pushing Chile into second place. Since then, Peru’s grape sector has continued to experience substantial growth. Particularly noteworthy is the consistent rise in exports to the U.S. over the past few years. The value of shipments in 2022 was nine times higher than the initial shipments recorded in 2012.

The key grape-producing regions include Piura, Lambayeque, and Trujillo in the north, and Lima, Ica, and Arequipa in the south. Peru has been on a strong growth streak, with an average increase of 20% over the past three seasons in the north. In contrast, the southern regions have grown at a more modest rate of 11%. With the initial projections in mind, it seems this season may deviate from recent patterns, as the volume of grapes from the northern region is expected to be notably lower compared to previous seasons.

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All pricing for domestic US produce represents the spot market at Shipping Point (i.e. packing house/climate controlled warehouse, etc.). For imported fruit, the pricing data represents the spot market at Port of Entry.

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