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Argentinian Grape Market to Stabilize - What does this mean for White Grape Juice Concentrate Supply?

15 Apr 2018

In 2016/17 - Argentinian grape growers continued to see their competitive position on the global market crumbling. This has various causes, but there’s only one consequence. A decreasing export of grapes in recent years, because growers sell their plantations or process their production into raisins and grape juice. Estimates for the coming year show an increase in volume of grape production, but what does it mean for the grape juice industry?


The previous two years saw a sharp decline in Grape production in Argentina, mostly due to unfavorable climatic and economic conditions, resulting in growers not marketing the grapes as fresh product, but as raisins or grape juice. While this may have had a positive effect on the grape juice industry - overall output was still lower than market expectations due to lower overall grape supply. 


About 90 per cent of grape production can be found in the province of San Juan. The area remains stable at 8,000 hectares but at risk due to natural climatic dangers (such as frost, hail and storms and more).



Grape production in Argentina over the last 3 years

2015:    2,180,000 MT
2016: 1,580,000 MT
2017: 1,780,000 MT
2018: 2,200,000 - 2,310,000 MT (Estimated)


White Grape Juice Concentrate production in Argentina over the last 3 years


(around 15% of this volume is consumed in the local market)

2015:   128,000 MT
2016: 91,700 MT
2017: 71,000 MT
2018: 100,000 MT (Estimated - it depends on the volume of production of wine)


As production in Europe has been low this season, it is estimated that the market will find a balance between supply and demand where prices will remain at approximately the current levels. The market prediction is that overall grape production and Grape Juice Concentrate will increase in 2018 to stabilize the current market situation. 


IPS-Ingredis sources the highest quality of Grape Juice Concentrate from Argentina, and supplies global markets and industries.

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Source: FreshPlaza / Moneyish

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