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Early finish to the season

Peru’s grape exports expected to be down 15 percent from pre-season estimate

It has been an unusual grape season in Peru. Weather patterns negatively affected grape production in Piura in the North, both in terms of lost production and quality/condition problems. “The lost volume from the north created a drop in supply to the major markets globally and resulted in a surge in demand with unusually high pricing for product that could arrive in good quality and condition,” says Dirk Winkelmann with Vanguard Group.

On the other hand, the outlook for the Ica region in the south is very positive with a large percentage of the volume pre-committed under either a contract or volume committed basis. Just as important will be the early finish of most of the Ica production with the expectation many of the major growers will be done with their harvest between the 2nd and 3rd week of January. “Late supply will be in the hands of only a few growers,” shared Winkelmann.

High-yield varieties
Due to volume and quality issues in Piura, the general perspective is for Peru’s overall production to be down. “While the final numbers have yet to be determined, Peru is expected to export between 60 and 62 million cartons, down significantly from the pre-season forecast of 73 million cartons. In recent years, growers have moved toward replacement of the older varieties to the higher yield IP varieties. Over the past few years, almost all - if not 100 percent - of the new plantings have been in new varieties. “On our ranches, 100 percent of the production is in IP varieties,” shared Winkelmann. As a result, production is expected to continue to increase in the future, although at a diminishing pace.

High demand
Vanguard Group’s Peruvian grapes make their way into North America, Asia, Latin America, the UK, as well as the European continent. Demand in North America is very strong and given the shortage in supply from Peru, Winkelmann expects the market to remain stable throughout the season. Outside North America, Vanguard also sees growth in its program and contract business in all global markets. “This is driven by Peru, especially the Ica region, being recognized as a premium quality production area. Demand is further bolstered by the planting of new preferred IP varieties, which our major customers globally are clamoring for throughout the season.”

For more information:
Ana Negrini
Vanguard Peru