California grapes

Demand for US grapes in China is continuing to grow and exports to the country increased by 19 per cent in 2010 compared to the previous year.

According to a USDA report, grapes have become a favourite with consumers, particularly in the south of the country and exports of US fruit to China in 2010 were valued at US$92m.

Much of the demand has been driven by seedless varieties, which continue to grow in popularity, despite higher costs compared to seeded varieties, the report stated.

While Red Globe is the most popular seeded variety, and accounts for the highest sales volume, niche markets for varieties such as Scarlet Royal, Crimson and Thompson are expanding.

The situation in the north and east of the country is different, however, as north China is the key production area for its domestic crop.

In these regions the price of Chinese fruit is as low as one-sixth the price of imported grapes, and importers of US product often struggle to turn a profit.

Table grape production in China is expected to increase by eight per cent in the year ending May 2012, according to the report. The area planted to grapes is forecast to increase by nine per cent to 600,000ha in the period, although this figure also includes grapes for processing.