World Grape Shipping Outlook is Favorable

World Grape Shipping Outlook is Favorable

dscn8447Grape production throughout the world is forecast to jump, rising 1 million tons to 21.9 million, as China’s growth continues and Turkey’s production recovers.

U.S. grape shipments is forecast to rebound back to near the 2013-14 record, rising 60,000 tons to 1 million tons, as vineyards recover from previous years’ adverse growing conditions.  Exports are forecast up 37,000 tons to 365,000 on higher production and improved shipments to Asian markets.  Imports are slated to rise 15,000 tons to 545,000 as consumption continues to grow and as domestic supplies are augmented by higher deliveries from Chile.

Chile’s production is forecast up 42,000 tons to 910,000 on abundant chill hours, warm spring temperatures, and good water supplies.  Exports are expected to parallel production, rising 42,000 tons to 730,000 on higher shipments to top markets U.S. and China.

Peru’s production is anticipated to increase by 65,000 tons to 605,000 on higher yields in maturing vineyards and as new plantings come into production.  Exports, averaging 60% of production the last 3 years, are forecast to improve to 370,000 tons as greater exportable supplies lead to higher shipments to the European Union and the U.S. Continued export growth sustains Peru’s position as the world’s second-largest exporter after Chile.

China’s production is forecast to jump 600,000 tons to 10.2 million on yields from higher growing area.  Exports are anticipated to surge over 50% to 350,000 tons, as increased supplies and lower prices boost shipments to Asian markets, especially Thailand, Vietnam, and Malaysia. Imports are projected to maintain an upward trend, rising 20% to 300,000 tons, as strong demand continues to drive shipments from top suppliers Chile, Peru and the U.S.

Turkey’s production is forecast to rebound from last year’s frost-affected crop, rising 345,000 tons to 2.4 million. Russia continues its ban on Turkish table grapes; yet, exports are expected to rise 50,000 tons to 225,000 on rejuvenated supplies and higher shipments to Belarus, Ukraine, and Georgia.

EU’s production is expected to slip 61,000 tons to 1.7 million, as decreasing acreage has been exacerbated by adverse weather in top producers Italy and Greece. Exports are forecast to contract slightly to 84,000 tons as production losses are reflected in lower shipments to Belarus and Norway. Imports are forecast flat at 610,000 tons.

Russia’s production is forecast to rise slightly to 103,000 tons as higher yields offset declining acreage. Imports are projected to decline further, dropping 25,000 tons to 230,000 as Russia continues to ban table grapes from top supplier Turkey.

Argentina’s production will drop 20,000 tons to 40,000, as a late frost damaged vineyards and high costs drove growers to raise wine and raisin grapes. Exports are expected to continue their downward trend, cut 3,000 tons to 8,000, and down sharply — nearly 90% — since their peak in 2006-07.

California grape shipments – grossing about $4400 to Chicago.