The European grape market is extremely competitive and most of the supply is programmed by large retailers. New grape varieties can improve productivity and extend the season with high quality grapes. The introduction of new varieties can increase competitiveness and will more effectively fill supply gaps between producers in Peru, Chile, South Africa and India, which often flood the market.

What are the mandatory requirements?

Pesticide residues and contaminants;

Pesticide residues are one of the crucial issues for fruit and vegetable suppliers. This is especially relevant for grapes, as they are consumed directly;

To avoid damage to health and the environment, the European Union has set maximum residue levels (MRLs) for food pesticides. Products containing more pesticides than allowed will be withdrawn from the market. The same goes for contaminants such as heavy metals.

Please note: several EU Member States, such as the United Kingdom, Germany, the Netherlands and Austria, use stricter MRLs than those provided for in European legislation.

Microbiological criteria

Food safety authorities may withdraw imported table grapes from the market or stop their entry into the European Union if salmonella or other bacteria are present (Regulation No 2073/2005). The European Food Safety Authority recommends the use of good agricultural, hygiene and manufacturing practices to reduce grape contamination.

Phytosanitary regulation

The new European directive stipulates that table grapes must be inspected before entering or being marketed within the European Union. The phytosanitary inspection must take place in the country of origin, and the consignment must be accompanied by a phytosanitary certificate guaranteeing that they are:

• properly inspected;

• pest-free, in accordance with the requirements for regulated pests;

• in accordance with EU phytosanitary requirements.

Quality standard

At the very least, fresh table grapes should comply with the general quality requirements. Europe requires almost exclusively class I grapes. Table grapes in this class must be of good quality and within the tolerances allowed. The grains should be firmly placed and, if possible, intact.

The defects may in no case affect the kernel of the fruit, the general appearance of the produce, the quality of storage and the presentation in the package.

For more information on the quality, size, packaging and labeling requirements for table grapes, see the UNECE standards for table grapes.

Certification

Common certifications for table grapes include GlobalGAP, BRCGS, IFS or similar HACCP-based food safety management systems for packaging and processing facilities. Management systems recognized by the Global Food Safety Initiative (GFSI) are the most recommended.

In the area of ​​table grapes there is competition from both local producers in Europe and non-European suppliers, depending on the season. The evolution of grape varieties can have a great influence on the competitive power. They increase overall yields and reduce gaps in the grape supply schedule. Exporting more grapes to an established market, such as Europe, often puts additional pressure on prices.

Which are the competing countries?

Table grapes in Europe is a very competitive market. Italy and Spain are the main suppliers of table grapes in the European area. The main seasonal competitors are producers from South Africa and Chile, such as Peru and India.

Italy and Spain

European table grape production is estimated at 1.7 million tonnes. Italy, Spain and Greece account for most of them. This is a local advantage and as long as their supply is abundant and competitive, especially during the peak period of August and September, it will be difficult to be on the market at the same time (see supply schedule in Figure 4). On the other hand, European table grape production is becoming expensive and competition from nearby regions, such as Egypt and Morocco, is growing.

Italy is the main supplier of grapes on the European market, but according to industry sources, Spain has recently made progress with investments and development of seedless grape varieties. The number of small growers in Italy makes the transition to seedless grape varieties more complicated. Several professional Italian growers join the seedless trend, but the seedless supply represents only 30-35% of Italian production, grown mostly in Puglia. Italian growers are also looking for late varieties to extend their season.

Spain's table grape production season is gradually increasing to 314,000 tonnes in 2019, while Italian production is much higher at around 1 million tonnes, but is slowly declining.

In the export trade, Spanish grapes are 30% more expensive per kilogram than Italian grapes. While Italian growers compete with grapes at low prices, Spanish producers focus on exporting seedless grapes, which should also be your goal as a foreign supplier. The strong point of Italy, in addition to volume, is the extensive area of ​​cultivation of organic grapes. According to statistics, Italy had 2,177 hectares of organic table grapes in 2017, Spain had 320 hectares in 2018. In total, these fields can produce tens of thousands of tons of organic table grapes.

South Africa

Deliveries from South Africa to Europe were 208 thousand tonnes in 2019. Europe is South Africa's main export market, especially the United Kingdom, where almost a quarter of all grapes exported from South Africa arrive. However, most exports of grapes from South Africa go to the Netherlands and from there to various European destinations.

South Africa is a preferred supply country due to the long experience of producers in grape production and the large volume of seedless white and red grapes. Grape production in South Africa expands from mid-November to mid-April and expands. The forecast for the 2020/21 harvest is between 293,000 and 314,000 tons.

Newly planted high-yielding varieties will keep South African table grapes competitive for many years to come.

Increasing production in new vineyards can occasionally lead to overproduction, affecting prices for all suppliers who have the same supply season as South Africa. But when European importers start relying too much on South African supply, a negative weather factor, such as drought, may increase the need for importers to find alternative sources of supply. The annual harvest in South Africa is something to consider when planning to export to Europe.

India

European imports of grapes from India have increased for several years in a row. The supply of grapes from India has had problems in the past due to traces of chemical residues, but since then it has completely changed and India has become a very competitive grape exporting country.

India became the second largest supplier of table grapes in Europe in 2019. European buyers mainly get seedless white grapes from India, they also often turn to India when Chile and South Africa do not meet the required volumes or price combination. -quality. The 115,000 tonnes of Indian grapes imported into Europe in 2019 can easily increase if Indian growers can maintain the quality of their seedless grapes. However, the country has been hit hard by the blockades due to the COVID-19 pandemic, so forecasts for 2020 are pessimistic.

In general, India has a great advantage that it has a huge grape production in combination with a significant domestic consumption. Indian producers can move from opportunistic exports to domestic withdrawal. This is a big plus that South Africa, Chile and Peru do not enjoy. Moreover, India can compete quite well and at low prices. However, none of this could prevent the losses from the huge reduction in exports due to COVID-19 in 2020.

Peru

Peru is a relatively newcomer to the international grape market, but has quickly gained a strong position in the EU market. Peru's grape production has grown rapidly and is estimated to reach 665,000 tonnes in 2020/21. The growth was achieved due to the larger planting areas and the conversion to better varieties.

Round-grained red grapes used to be dominant in Peruvian cultivation, but growers have updated their vineyards with several popular seedless varieties. Large volumes and popular varieties have turned Peru into a strong seasonal supplier for Europe. According to Fruitrop, red blood cells now account for a third of exports instead of 80% in 2012/13.

Due to two different growing regions, Peru has an extended supply season. Strong growth in the northern Piura region is helping Peruvian growers enter the supply chain strongly between September and November.

Since 2018/19, Europe has become more important for Peruvian exporters, as the United States has not been able to absorb all Peruvian surpluses. Their supply increased by almost 70%, reaching 94,000 tons in 2018 and 93,000 tons in 2019.

Most of the production is exported. Peru has no choice but to export table grapes, as local market opportunities are very limited. However, the volume of Peruvian grapes has increased so much that at the peak of supply, it affects the export potential and profitability of suppliers, not only in Peru, but also in Brazil, Chile, South Africa.

Chile

Chile is a traditional exporter of grapes and one of the largest in the world. For a long time, it was the second largest supplier to Europe, but in 2019 they returned to the fourth position, with a volume of 86,000 tons.

Despite the long experience of Chilean producers, the volume of grape production in Chile is declining, as are exports, partly due to the exchange of varieties, but also due to lack of water and labor. Water and labor costs will be major issues for the future of Chile's grape sector.

The main season for Chile runs from January to May. Most table grapes from Chile are shipped to Europe at the end of the Chilean season, as there are still large stocks that overlap from Peru and South Africa in the first months of the year. Chile often gives priority to the market in the United States and China, which are more significant for the export of grapes from Chile.

Chile's reputation for table grapes will keep competitors at bay, but due to rising production costs and declining production volumes, new opportunities will arise for table grape growers in other countries.

Brazil

Brazil has a great advantage in climatic zones and in different regions of growing table grapes. Brazil uses a significant portion of grapes to meet local demand, but when local consumption is low, exports become the focus.

Although the production season is long and lasts from April to December, most Brazilian grapes arrive in Europe between October and December. The Brazilian supply to Europe follows immediately after the harvest of Spanish and Italian crops. The window for Brazilian grapes in Europe is getting smaller as many European grape growers try to extend their season with late varieties. Namibia will soon enter the EU market, further reducing the gap for Brazil.

In 2019, Brazil supplied the European Union with 33,000 tons of table grapes, without a significant increase in recent years. These are about to be surpassed by the future supplier Namibia, which exported a similar value and volume to Europe in 2019.