Peruvian Grape Production and Export Markets
Peru is a South American nation with a long Pacific coast and significant ties to East Asian markets. With a population slightly over 30 million and sustained economic growth of more than 2.0% yearly over the last three years, Peru’s GDP amounts to US$390 million (purchasing power parity). Agriculture accounts for little over 7.0% of the economy and the national production is mainly focused on artichokes, asparagus, avocados, blueberries, coffee, cocoa, and grapes. However, the overwhelming majority of Peruvian exports consist of mineral commodities, such as copper, gold, zinc, and lead. Nevertheless, this article explores the growing grape markets within Peru and their integration into global trade.
Peruvian Grape Production and Export Markets
The largest and most important grape producers in the world are China, Italy, and the United States. In Latin America, there are only two major grape producers, which are Chile and Argentina, both located in the South American continent. Though not a major producer, Peru has emerged as a substantial supplier to the international grape market. Over the last decade, grapes have become an important export within the Peruvian economy. During 2014/15, Peruvian grape exports totaled 312.000 metric tons valued at US$704 million. In 2015/16, more than half of Peru’s 540.000 metric tons of total grape production was destined for international export, amounting to 350.000 metric tons. Similarly, during 2016/17, 370.000 metric tons, out of 605.000 grown in Peru, are expected to be sold into the international markets. Most Peruvian grape exports, over 20%, are sold to the US, which is followed by China and the Netherlands, each accounting for more than 10% of international grape sales (respectively).
In terms of domestic markets, for 2016/17, Peruvian table grape consumption is expected to be of 235.000 metric tons. Likewise, every year, approximately 100.000 metric tons of grapes are used in the elaboration of a traditional Peruvian alcoholic beverage called Pisco. Overall, grape output has been growing in Peru due to favorable international prices, increased yields, and new grape orchards being planted throughout the northern coast as well as central valley regions of the country. For the 2017/18 season, grape production is expected to reach 610.000 metric tons. The grape varieties produced in Peru include Red Globe, Crimson seedless, Flame seedless, Sugraone, and Thompson seedless. The average price of grapes per metric ton fluctuates between US$2.25 and US$3.00.
In terms of crop management and agricultural logistics, Peru has the advantage of benefiting from milder temperature than most grape producers enjoy, which means that it can harvest during more months throughout the year. However, the warmer temperatures also mean that grape cultivators in Peru have to worry about certain pests that are not present in other parts of the world. Similarly, another issue with grape cultivation in Peru is the high demand for water irrigation, which can be a scarce and precious resource in certain regions of the country. In total, the average amount of land devoted to grape cultivation in Peru during the last several years has been of 28.000 hectares.