20 八月 2020

Crop Update: Red Globe Grapes Out of Yunnan, China

Vanguard is pleased to provide an update on the season of Red Globe grapes out of the Yunnan Province in China.

Harvest quantities and quality

Yunnan’s peak harvest is from Week 23 – Week 34. Yunnan is harvesting one week earlier than last year, but crop volumes are down by about 50%. The main reason for this is an unfortunate period of frost that occurred at the time when the Red Globe crop was flowering.  This fruit typically has a lower brix level than from other regions – last year it was around 12 degrees, while the Xinjiang region, for instance, was around 16-17 degrees. That being said, with less rain this year, brix on Red Globes out of Yunnan is expected at 13-15 degrees, a nice improvement!

After Week 26, rain entered the production area that helped to increase fruit sizing and volumes. 40% of the Red Globes of out this region have a diameter of 20-22mm+, with 40% at 24mm+, and 20% at 26mm+. Some brunches are experiencing green halos on the fruit, with uneven fruit sizes, but overall it is a good crop this season

Pricing

This region produces fruit when other regions do not so Yunnan pricing is usually around 10% higher, and the supply period is shorter. The price of Red Globes from Yunnan on Week 24 – Week 28 is high. Sourcing price is around $1.7 per kg for size 22mm+; $1.85 per kg for 24mm+; $2.2 per kg for 26mm+.

Around 90% of this crop is sold to the domestic market as the China Dragon Boat Festival Holiday is on Week 25 and demands big volumes. Most tropical fruits are not selling during this period so domestic selling of Red Globes is favorable. During this high price period, some fruit is also sold to Indonesia. However, this market has an increased sensitivity to price and volumes are limited as a result. Yunnan Red Globe pricing should decrease from Week 27, reaching a low point at Week 29 – Week 31. As a result of the significant volume decrease of 50% this season, it is expected that prices should stay stable prior to Week 27 for the remainder of the season.

Procurement

Vanguard and our logistics partner purchases grapes directly from the growers. We work with their production and QC teams who are well versed in what our quality requirements are for shipment to our customers around the world.