Table grape market hits record highs

Rabobank has conducted research into the global market for table grapes — that is, those intended for eating, not wine production — finding that exports reached record levels of 4.3 million tonnes in the 2021/22 season.

This is despite issues such as supply chain disruptions and production problems that have faced the global grape industry in the past year.

The report notes that exports to China, the largest importer of grapes, have slowed due to these issues but the country still remains a hungry market for the fruit. Other regions, such as the USA and Europe, have reduced their imports while smaller ones have increased theirs.

Importantly, the quality of grapes has been increasing, which is expected to lead to greater consumer satisfaction in the products, even as their tastes change, such as Chinese consumers’ interests in new seedless varieties.

Australia, which is a fairly large producer of table grapes, has had a rough couple of years. Poor weather and reduced labour levels impacted the quantity of healthy grapes or the ability to harvest them, respectively.

With China’s reduction in the imports of Australia’s grapes, countries in Southeast Asia have become larger markets, with Vietnam, Singapore and Thailand increasing the amount of grapes they are buying.

The report predicts that as Australia develops a wider variety of proprietary grape cultivars, the rest of the world will be a larger market, replacing the reliance on China.

Labour conditions are predicted to be an ongoing problem for the nation’s industry, as will the availability of refrigerated (reefer) containers, but growing conditions have been good for the 2023 season so far, with sufficient yields to be expected.

“However, we do see continued challenges for growers in terms of access to labour and high global container freight rates on the horizon,” said Rabobank associate analyst Pia Piggott.

“With unemployment expected to remain at 3.8% into 2023, table grape growers, like so many sectors, will struggle to source staff.

“Access to reefer containers for shipping continues to be tight, due to global supply chain issues, and we expect to see elevated costs in the short term.

“In terms of new opportunities for Australia, the 2021/22 season is the first full season in which table grape exporters had access to the irradiation facility in Merrifield, Victoria, for treatment.

“This allows table grapes grown in south-eastern Australia to be directly exported from Victoria, reducing lead time. In previous seasons, table grapes had to be shipped to Brisbane for treatment before export to countries such as Vietnam.

“Access to this new facility provides an exciting opportunity for Australian growers to increase exports to the emerging markets of Vietnam and Singapore.”

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