Original content
Grape production in Argentina’s San Juan province has declined in the 2025 season, contradicting earlier forecasts of a 10% increase. By March 23, 2025, the total harvested volume reached 338.76 million kilograms (kg), down from 382.33 million kg in 2024. The decline is due to extreme weather events, including hailstorms, heat waves, the Peronist storm, and the uncontrolled spread of the Lobesia botrana pest. The Peronist storm refers to a severe weather system that typically brings heavy rainfall and strong winds, causing damage to crops and infrastructure. Meanwhile, Lobesia botrana, also known as the European grapevine moth, is a destructive pest that affects grape yields by feeding on flowers and fruit clusters. In response, the government has declared an agricultural emergency in several affected regions. According to the National Institute of Viticulture (INV), 56% of San Juan’s harvested grapes have been processed into must, a figure expected to rise to 60% by the end of the harvest.
The Dominican Republic is expected to export table grapes to the United States (US) and other international markets in W14, marking a significant step in diversifying its agricultural exports. Shipments will originate from Guayubín and other areas in Montecristi province, aligning with the government's efforts to drive productive innovation. This development positions the country as a new player in the global table grape market, creating opportunities for local growers and strengthening its agricultural trade portfolio.
Grape production in Karnataka, India, spans approximately 20 thousand hectares (ha), with peak harvest expected in April and May. The key production areas, such as Chikkaballapur, Bangalore Rural, Vijayapura, and Belagavi, supply neighboring states. While poor pricing in recent years dampened grower returns, this season has seen stronger market engagement, particularly for the Sharath variety, which commands prices between USD 1.33 and USD 1.81/kg. However, unseasonal rainfall and persistent fog have lowered yields across several districts, increasing demand and prompting early procurement by traders. Additionally, a shortage in Maharashtra, another major grape-producing state, has further intensified market activity in Karnataka.
German winemakers are increasingly planting grape varieties like Chardonnay, Sauvignon Blanc, and Merlot, traditionally grown in warmer southern European regions, as they adapt to climate change. In 2024, Chardonnay plantings expanded by 4.7% to 3.05 thousand ha, nearly doubling over the past decade, while Sauvignon Blanc plantings more than doubled to 2.05 thousand ha. In contrast, Müller-Thurgau, once Germany’s most common white variety, declined by 2.1% to 10.5 thousand ha. Among red grapes, Merlot saw a 3.2% increase to 96 ha, partially offsetting the 1.4% decline in red wine production. Despite these shifts, Germany, Europe’s fourth-largest wine producer, faced a 9.8% drop in total wine production in 2024 due to adverse weather, including spring rains, mildew, late frosts, and hailstorms.
According to the National Institute of Statistics and Informatics (INEI), Peru’s grape production reached 250.9 thousand tons in Jan-25, marking a 10.8% YoY increase. Favorable warmer conditions supported fruit growth and fertilization, boosting exports and agribusiness. The Ica region remained the top producer, contributing 86.3% of the national output with a 9.5% increase. Significant growth was also recorded in Lambayeque, which saw an increase of 1,150%, Piura with an increase of 900%, Ancash with an increase of 21.5%, and Arequipa with an increase of 6.7%. Meanwhile, production declined in Tacna by 88.3%, Moquegua by 51.1%, San Martín by 45.9%, La Libertad by 25%, and Cajamarca by 20.5%.
Spain's Ministry of Agriculture has revised La Rioja’s green harvest aid program for the viticulture industry, refining subsidy criteria and updating grape valuation methods to better support growers facing surplus production. For 2025, a green harvest premium of USD 1.29/kg of grapes will be provided to growers, calculated based on a maximum yield of 6.5 kg/ha. This means growers will receive USD 1.29 for every kg of grapes removed from their vineyards due to surplus production, with aid averaging USD 4,109.57/ha. Unit costs are set at USD 550.47/ha for manual bunch removal and USD 307.14/ha for mechanical removal. La Rioja is expected to receive the largest share of the budget, reinforcing the program’s role in stabilizing the grape market and optimizing funding allocation.
Grape prices in Peru rose by 5.17% week-on-week (WoW) to USD 0.61/kg in W13, with a slight increase of 1.67% month-on-month (MoM) due to steady export demand from key markets in North America and Europe. The price uptick is also a result of the tightening supply in the market, as production levels have yet to catch up with the surge in demand despite favorable conditions. However, YoY prices dropped by 34.41% due to the significant YoY increase in production volumes, driven by the recovery of northern regions and higher yields from improved grape varieties, which have led to an oversupply in the market and put downward pressure on prices compared to the same period last year.
In South Africa, grape prices surged by 15.25% WoW to USD 2.04/kg in W13, representing a 54.55% MoM rise and a 28.30% YoY increase. The price surge is due to a further reduction in supply as the harvest season moves into its final stages, particularly in the Hex River Valley, which produces late-season varieties. As the availability of fresh grapes decreases, market prices typically rise. Additionally, strong export demand, particularly from European markets, has compounded the supply pressure, driving prices higher. This combination of supply tightening and sustained demand has led to the observed price escalation.
India's grape prices dropped significantly by 23.76% WoW to USD 0.77/kg in W13 due to the arrival of the peak harvest from Karnataka and Maharashtra, which boosted the overall supply in the market and led to a reduction in prices. However, MoM and YoY prices increased by 1.32% and 18.46%, respectively, due to the ongoing production shortfall in Nashik, where unseasonal rainfall from the previous year has continued to affect yields. This limited supply from Nashik, coupled with growing demand in both domestic and export markets, has kept prices higher compared to last year and the previous month.
To mitigate climate risks, German winemakers should continue diversifying vineyards with heat-tolerant varieties like Chardonnay, Sauvignon Blanc, and Merlot. Investing in vineyard management techniques, such as optimized canopy structures and irrigation systems, can further improve resilience. Collaborating with nurseries to access disease-resistant clones and experimenting with drought-adaptive rootstocks will also help secure long-term production stability.
Grape traders and farmers in Karnataka should secure early procurement contracts to capitalize on the rising demand and limited supply. Partnering with wholesalers and retailers in neighboring states can ensure stable pricing and avoid last-minute market fluctuations. Investing in protective coverings and improved drainage can also help mitigate weather-related losses and maintain fruit quality.
Sources: Tridge, America Economia, Decanter, Diario Huarpe, Freshplaza, Hans India, Nuevecuatrouno, Presidencia
Read more relevant content
Recommended suppliers for you
What to read next
