Turkish Vine Fruit, Market Update, 03.10.2022

Raw Material Quantity Estimated’

2021 crop registration of raw materials at the bourse ended as 306k tons as of the end of August, 6% lower than the previous crop’s 326k tons. This figure is very close to the general expectation of 290k tons which was statistically realized with 95% precision.

The Ministry of Agriculture did not again announce the crop estimation figure this year. According to the market players, a significant amount of higher volume was expected this season. However, due to the rains 1 in late August and early September, the general expectation for the 2022 crop is now a bit higher than 300k Carry overs are neglected tons.

2021 Crop Exports

Vine fruit exports from Turkey ended as 252k tons. Turkey has exported mm .29k tons (13%) more than the 2020 crop, while the average price dropped. Exports to ten different countries, which is 81% of total 2021 crop exports, are shipped to the UK (64k tons), Germany (35k tons), the Netherlands (24k tons), Italy (20k tons), Australia (17k tons), Japan (6k tons) and Poland (6K tons). Compared yo2020 season, UK shipments are down by 3% and France by 2%, Germany increased its volume by 21%, the Netherlands 5%, Italy 19%, Canada 19%, Spain 23%, Japan 25%, respectively. A significant increase of 46% for Australia and 36% for Poland have been observed.

2022 Crop Exports,

On the fourth week of the 2022 crop, exports reached 19k tons in total, which is 16% lower than the 2021 crop's 23k tons of the same period. The top five countries that Turkey has exported so far are: UK (4k tons), Italy (3k tons), the Netherlands (2k tons), Germany (2k tons), and France (1k tons)

Price Level and Market

President Erdogan pushed raw material prices upward in TRY and announced prices were higher than expectations. However, in terms of USD, with export prices 16% lower than last season, Turkey continuous to be competitive in dried grapes among other producing countries. TMO declared that they bought above 50k tons last season and have no upper limit will buy all the fruit growers offer until December 31, 2022. They bought possibly over 30k tons so far.

With ongoing investments on vineyards, processing equipment’s, technology, and good agricultural practices, Turkey will be competitive in the long run. with the sector's initiation last year, zero to less than 5-6 pesticides target will be achieved in Turkish dried grapes, which has already been in progress and widely supported by growers, packers and all the industry. Higher quality combined with increasing crop volumes each and every year will make the price levels very favourable among competing countries.

From the Vineyards,

The 2022 crop harvest has ended. Up until mid-August, at least 10% higher volume than last year was expected. However, a couple of rains beginning in late August had affected the crop and increased the expectations to similar or perhaps a little bit higher than last year's levels. Because of rains the fruit is darker than in a typical year, and some quality problems are observed in the rain his fruits. When comparing good quality material, we are likely to have much less volume than last year.