South Africa's Fresh Grape Market Sees 109.5% WoW Price Surge in W11

South Africa's fresh grape market experienced a significant surge in wholesale prices, increasing by 109.5% WoW to USD 1.97/kg in W11. The price increase is due to the early ending of the export season and reduced crop estimates in the Hex River Region.
In W11, South Africa's fresh grape market experienced a remarkable week-on-week (WoW) surge, with wholesale prices surging by 109.5% to USD 1.97 per kilogram (kg). Furthermore, in Jan-24, there was a month-on-month (MoM) increase of 27.9%, as the price in Feb-23 was recorded at USD 1.54/kg. It's worth noting that grape prices in South Africa have shown fluctuations in both 2023 and 2024, indicating the volatile nature of the grape market in the region. The price of South African table grapes has increased due to several factors. Firstly, the early ending of the export season around W12, two weeks earlier than the previous season, suggests a shorter supply period, potentially leading to higher prices due to limited availability. Additionally, the decrease in the Hex River Region's crop estimate by 6.0% to 22.5 million cartons, attributed to weather challenges, has reduced the overall supply of table grapes. Completing packing in the Berg River Region, with a good quality harvest noted, further supports the idea of limited supply driving up prices. The improved collaboration and communications between industry and Transnet, leading to a variance of 5.91 million cartons between inspected and exported volumes, indicates greater efficiency in the supply chain, which could also contribute to price increases as costs are managed more effectively. Moreover, major Israeli companies have stopped ordering grapes from South Africa due to concerns about a potential consumer boycott due to South Africa's lawsuit against Israel. A company with close ties to Israel has also suspended orders for South African grapes, reducing availability. This could lead to a shortage of grapes and increased prices in the coming months. Retailers are now more sensitive to consumer preferences regarding product origin, especially after implementing the country-of-origin labeling law.