South American grape shippers will likely be looking to increase export volumes to the U.S. because of stagnant or less demand from European and Asian markets this winter, according to an article in FreshFruitPortal.com in a recent interview with industry veteran John Pandol, director of special projects for Pandol Bros., Inc., Delano, CA.
Pandol called the situation “scary” and “…could get out of hand,” with extra volume showing up because the European market can only take so much volume.
By contrast the US has regional independent supermarket chains that can respond to increased volumes and do this to compete against the big program buyers.
The first Peruvian grapes began to arriving in the U.S. in early November in anticipation of transition from California grapes, which occur in December or January, depending on the buyer.
At the same time Far East and Latin American importers are being conservative for both economic and supply chain reasons.
Those in the winter grape business is still feeling “burned” after Peruvian fruit stacked atop the peak Chilean volume early in 2022. The inclination now is to move Peruvian grape volume early to avoid another collision with Chile.
California’s grape season wrapped up several weeks ago.
A larger than normal amount of grapes were not harvested, for a variety of reasons. It is estimates 3-4% of the potential fresh crop was diverted to wineries or other byproducts.
California’s table grape estimate for 2022 was 97 million boxes. The final fresh volume will measure in the low 90s, by Pandol’s estimation.
Another important factor that may haunt growers is some of their new tasty proprietary varieties may be negatively impacting overall sales. In red and white seedless, varietal preferences lead many perfectly good reds or whites being forced into artificially short market windows or becoming obsolete all together. In blacks and specialty grapes the expectations for demand never materialized and now there is oversupply that simply goes unharvested.
In essence, he said the table grape industry faces issues relating to varietal preference, varietal obsolescence and an oversupply of niche grapes.