Table grapes
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Despite average prices for grapes holding steady over the past few years, various factors weighed on producer margins and producers are under pressure after three testing export seasons. Our view is that 2022/23 will therefore be a watershed year for a lot of producers and expect consolidation in South Africa and abroad. For the export concluding now, market stakeholders did report more favourable export prices in markets such as the EU and UK, with a lot of South American volumes entering dollar markets. This was underpinned by the strong dollar and more favourble shipping rates to North American destinations. Our view is that Dollar or Euro prices will continue to follow an upward trajectory over the medium term, albeit at a modest rate, as Peruvian and Chilian volumes return to Europe as shipping costs normalise. Global interest rate dynamics could, however, keep the dollar comparatively firm which could continue to support the attractiveness of dollar markets.
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