- Demand for grape juice concentrate is strong due to the high price of apple juice concentrate.
- And after good crops across the board, there should be sufficient stocks to satisfy demand until the start of 2021.
- This is despite the fact Argentina, one of the larger grape producing-regions, suffered a year-on-year production decrease of 25%.
A Quick Production Update
- Global production will total 23.4m tonnes this season.
- The main producing regions have increased their output by 900k tonnes collectively.
- However, Argentina, one of the larger grape producers, wrapped up production in May and juice concentrate production totalled around 120k tonnes, down 25% year-on-year.
Demand
- Demand for grape juice concentrate has been strong because apple juice concentrate prices are high at present.
- COVID-19 has not really impacted demand either; Argentina’s exports increased by 11% this year.
- Global grape stocks should cover demand until the start of the 2021 crop.
Looking Ahead…
- Northern Hemisphere countries, such as Spain and Italy, are expecting normal crops which will commence in September.
- This means the industry will be in balance long enough to reach the start of the 2021 crop.
