Grape Update

An Expert's View about Viticulture, Grapes in Peru

Posted on: 28 Jun 2012

Grape production in Peru is forecast to reach 325,000 MT in CY 2013. Peru’s grape production have sky rocketed in the past decade.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 6/7/2012 GAIN Report Number: Peru Post: Lima Grape Update Report Categories: Fresh Fruit Approved By: Emiko Purdy Prepared By: Gaspar E. Nolte Report Highlights: Grape production in Peru is forecast to reach 325,000 MT in CY 2013. Peru’s grape production have sky rocketed in the past decade, from practically non-existent in CY 2000 to an estimated 130,000 MT in CY 2012. General Information: Production Grape production in Peru is forecast to reach 325,000 MT in CY 2013. Grape production has been increasing robustly since CY 2000, mainly driven by exports. Grapes in Peru are mainly produced in the central valleys along the coast (Ica, Lima). However, new areas in the Piura and Lambayeque regions on the northern coast are rapidly developing. Peru produces mostly Red Globe (a dark red grape with a diameter of 24 to 28 millimeters). Other varieties produced are Crimson seedless, Flame seedless, Sugrone and Thompson seedless. Grape is one of the most expensive crops to establish. The initial investment is around $37,000 per hectare without taking into account land cost. However, the return on investment is also high and at current international prices it is probably one of the most profitable crops. The following is an estimate of establishing a hectare of grapes and its cash flow. Investm $/Ha ent Item Soil preparat 6,237.4 ion 2 Trellis 10,296. material 20 Anti bird mesh 3,943.6 4 Plants 5,458.8 9 Drip irrigatio 5,500.0 n 0 Machine ry 4,353.5 4 Unexpec ted 1,789.4 expense 8 s TOTAL 37,579 .17 Cash Flow per Hectare (Red Globe on Central Coast) Year 0 1 2 3 4 5 6 7 8 9 10 Income 30,75 46,73 46,73 46,73 46,73 46 46,73,73 46,73 Exports 23,369 5 7 7 7 7 7 7 46,737 7 Local market 693 912 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 Drawback 1,168 1,538 2,337 2,337 2,337 2,337 2,337 2,337 2,337 2,337 33,20 50,46 50,46 50,46 50,46 50,46 50 50,46,46 Total 25,230 4 0 0 0 0 0 0 50,460 0 Cost 19,50 19,50 19,50 19,50 19,50 19 19,50,50 19,50 Production 22,000 0 0 0 0 0 0 0 19,500 0 19,50 19,50 19,50 19,50 19,50 19 19,50,50 19,50 Total 22,000 0 0 0 0 0 0 0 19,500 0 13,70 30,96 30,96 30,96 30,96 30,96 30 30,96,96 Gross profit 3,230 4 0 0 0 0 0 0 30,960 0 Investment 37,579 - 37,57 13,7 30,9 30,9 30,9 30,96 30 30,96,96 30,96 Balance 9 3,230 04 60 60 60 0 0 0 30,960 0 - - - 37 196,07 227,0,57 34,34 20,6 10,3 41,2 72,2 103,1 134,1 165,1 Accumulated Balance 9 9 45 15 75 34 94 54 14 3 33 Trade Peru’s grape production have sky rocketed in the past decade, from practically non-existent in CY 2000 to an estimated 130,000 MT in CY 2012. Grapes have become one of Peru’s main agricultural exports, totaling $304 million in CY 2011. Peru’s main market in the United States, with a total of 30,793 MT in CY 2011, followed by the Netherlands, Hong Kong, Russia and China.
Posted: 28 June 2012

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