The 2001 Market Conditions for Table Grapes Demonstrate
that the Coachella Antidumping Claims have no Basis

R. Adam McBride, Executive Director, Diamond State Port Corporation, said today that this seasons’ table grape market conditions effectively prove that, “there is no basis for the antidumping petition filed against Chile and Mexico by a small group of U.S. grape growers in the Coachella Valley.”

McBride was reacting to a series of California press reports that indicate that the growing seasons in Chile/Mexico and in California did not overlap this year as they did last year.  As a result, volumes are down and prices are up.

A small group of U.S. grape growers, primarily from the Coachella Valley in California, recently filed a dumping suit with the U.S. Department of Commerce and the International Trade Commission against producers of spring table grapes in Chile and Mexico.  In their suit, filed on March 30, 2000, the petitioners allege that Chilean and Mexican grapes entering the U.S. marketplace between April and June 30, 2000, entered at less than fair value.   

The petitioners also allege in their suit that they were materially injured by sales of these grapes in the U.S. marketplace and would experience even greater injury and loss from Chilean grape exports in the years to come.

As a result, the petitioners asked the U.S. Department of Commerce to impose antidumping duties on the future sale of Chilean table grapes in the U.S. marketplace, to compensate for the injuries they believe Chilean imports have inflicted  -- and will continue to inflict  -- on U.S. producers.  On May 9^th, the Department of Commerce decided to initiate the dumping investigation against the Chilean and Mexican importers.  

The Chilean Table Grape industry denies all allegations by the petitioners and has promised to vigorously defend itself in the technical process at Commerce and the ITC, as well as in the court of public opinion.  The Chilean Table Grape industry maintains that the “large jump” in Chilean grape sales in the U.S. marketplace between the 1998/1999 and 1999/2000 growing season can be explained by the unusual growing seasons in both countries last year due to various climatic factors.   What resulted was a later than normal harvest in Chile and Mexico and an earlier than anticipated harvest in the Coachella Valley.  As a result, the two harvests overlapped thus creating excess supply and driving down prices.  The Chileans have argued that without this unusual overlap, prices would return to normal levels (as now seems to be the case). 

Stated McBride, “this year, climatic conditions have returned to normal”.  In fact, “because the Chilean and Mexican grapes were on schedule this year, and because the Coachella crop has been late in developing, rather than an oversupply, there is actually now a scarcity of grapes available for the Memorial Day holidays.” The impact on prices has been predictable.  Some reports indicate that red grapes last month wholesaled at $12-$14 per case.  During the month of May the same grapes are going for $23 per case.”

The antidumping petition filed by the Coachella growers could have a significant negative impact on the economy in the State of Delaware.  The Delaware River Complex serves as the center for the importation of Chilean fruit to the United States market and Chilean table grapes.  The ports in the Tri-State area handle 45 million crates of grapes each year and several thousands jobs in the ports and surrounding communities rely on the imports of table grapes into the United States. 

“What is happening in the table grape market this season contradicts the basis of the arguments made by the Coachella Valley growers.  It demonstrates that prices are higher this year because there is a gap between the Chilean harvest and that of Coachella Valley.  It also demonstrates that prices dropped last year because of an unusual overlap in the growing seasons,” concluded McBride.    

Founded in 1923, the Port of Wilmington is an important asset for the local and regional economy, generating more than 5,800 jobs and contributing over $22 million in annual tax revenues to State and local government.  The Port is owned and operated by the Diamond State Port Corporation, a corporation of the State of Delaware.  For further information, digital photos, free tours of the Port and free speakers contact:  Vered Nohi-Becker, Marketing Services Manager at the Port of Wilmington @ (302) 472-7819, e-mail: vnbecker@port.state.de.us