New Zealand produce company Turners & Growers (NZX: TUR) has announced a joint venture with Unifrutti Chile to grow table grapes in the northern Peruvian region of Piura.

As global demand increases for Peruvian supply, which is able to fill gaps of lower grape availability in the market at the start of the Southern Hemisphere season, the two parties plan to start planting late this year and harvest the first commercial volumes in 2015. 

The deal follows through on comments made by in February BayWa CEO Klaus Lutz, whose company owns T&G.

T&G chief executive Alastair Hulbert said the JV was the result of extensive research and collaboration between the two companies, which have identified immense potential for the region in the long-term.

"The partnership with Unifrutti makes a lot of sense. They have significant experience in the development of vineyards and infrastructure in South America and have superior new table grape varieties within their portfolio," Hulbert said.

"We currently enjoy an excellent commercial relationship with Unifrutti Chile, and we are extremely pleased to be developing a Joint Venture with a company of such high calibre in the South American region."

He said the partnership was an example of the company's new strategy in action, which has also included the announced acquisition of another New Zealand company, Apollo Apples.

"We are focusing on grapes as one of our key categories and building partnerships to expand our pipfruit and other key products internationally," Hulbert said.

"With this investment, we’re becoming more vertically integrated in Table Grapes which we believe to be key to securing a strong position in the category, whilst expanding on the solid supply base we have already established with our Peruvian grower partners."

The New Zealand group now has more than 10 years of experience of developing a global table grape business through its subsidiary Delica.

Unifrutti Chile executive vice president Jorge Massanes said his team was very excited about the joint venture.

"Investing in Peru is something that has been one of our priorities and finding the right partner was the challenge," he said.

"Our commercial relationship with Delica and their top management, plus their experience in Peru, made Turners & Growers the perfect partner.

"Table grapes are one of our key products and through this partnership we will be able to better serve our clients by expanding our shipping season."

In Chile, Unifrutti is among the largest fresh fruit growers and exporters and is owned by the De Nadai International Group. Unifrutti Group has farming operations in Philippines, South Africa and Chile, combined with an extensive global distribution and sales network.

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