Mexico ends its 2024 table grape season

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Mexico ends its 2024 table grape season

Mexico's table grape season is over, making it an ideal time to assess the industry's current state. Freshfruitportal.com spoke with Sergio Lugo, director of Mexico Table Grapes at the Sonora Table Grape Growers Association.

The executive indicated that the Mexican grape season was marked by a drop in prices in the U.S. market, which, in some cases, made it more attractive for producers to leave the fruit in the domestic market.

“This is because we handle a very strong and concentrated volume during certain weeks,” he said. “Historically, we know that, on average, 3.5 million boxes are consumed weekly in the United States, but we had inventories of up to 6 million boxes. This reflects a supply that the market is not absorbing,” he added.

Continuing with the analysis of the Mexican grape campaign, Lugo explained that the industry did not obtain the expected yields in certain varieties “due to the heat waves we had in this area.”

He emphasized that temperatures only started cooling in mid-December. “This has been a very hot year, which has affected grape production.”

Lugo also referred to the presence of other table grape-supplying countries. Regarding Chile's supply, he said it was favorable for late-season fruit. “This caused more grapes to be on offer, which also made us look at options to send certain types of grapes to the domestic market and other markets in order not to saturate U.S. supermarket shelves.”

Mexican Table Grapes Today
Lugo said the industry is currently in the first pruning stage for next season. “We have already started pruning in the Sonora region; Jalisco began a couple of weeks ago, and we are now waiting for lower temperatures.”

He added that they hope no cold fronts undermine the plants so they can begin applying seeds and start making projections for the next season. “I think the season will start around mid-May.”

This year, Mexico ended the season with a total of 23.8 million boxes, which were primarily destined for the U.S. market, compared to 25 million boxes shipped the previous season. “The drop is due to the heat waves that reduced our yield,” he said.

The second most important market was the domestic market, with almost 7 million boxes, followed by Asia, with 2 million boxes.

When asked about prices, Lugo pointed out that they averaged over $22 per box this year. “We must remember that when we approach the California season, prices tend to drop. In addition, the Peruvian and Chilean grape seasons came with good prices, and due to oversupply this season, prices dropped.”

He specified that profitability for the Mexican table grape industry should ideally be around $23 to $25 per box.

Challenges and Labor Outlook
Lugo noted that the sector faced increased costs this year. “We have also been struggling with labor issues, but weather conditions have affected other products that, unfortunately, will not have a productive cycle this year.”

However, he was optimistic about labor availability for the upcoming season. “I believe that this year we are not going to have a labor problem, and we will have enough workers to cover our crops,” Lugo pointed out.

He concluded by highlighting that there has been an increase in the production of other crops such as berries and avocados in Mexico, “which had limited our labor force. But unfortunately, due to the scarcity of rainfall, there are regions that will not have agricultural cycles, allowing us to employ more people in grapes.”

 

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