Assessing the Competitiveness of Global Grape Production in International Trade

Understanding the competitive dynamics of key agricultural commodities like grapes is essential for countries aiming to enhance their position in international trade and secure sustainable economic growth. This study analyzes the competitiveness of global grape production in foreign trade by applying the revealed comparative advantage (RCA) and relative export advantage (RXA) indices. In 2022, global grape production covered 6.7 million hectares, with the largest production areas in Spain (923,000 ha), France (758,000 ha), Italy (710,000 ha), China (655,000 ha), and Türkiye (385,000 ha). Global grape production has increased by 40.14% since 1962, reaching 75 Mt. According to the analysis, Peru has the highest RCA (57.36) and RXA (67.66) values in table grapes, indicating the strongest comparative advantage in foreign trade. Peru's competitive advantage has shown a steady upward trend since 2004. Chile ranks second but exhibits a declining trend in its competition indices. Among the leading countries in table grape exports, only Peru's competitiveness has steadily increased over the years. Although there has been a recent increase in competitiveness in Chile and South Africa, both countries experienced a downward trend since 2004. Türkiye demonstrates the highest competitive advantage for dried grapes, with an RCA of 40.59 and RXA of 56.31 in 2004. However, these values decreased to 28.27 and 39.54, respectively, in 2022. Conversely, Iran shows an increasing trend in competitiveness for dried grapes and has the potential to become a leading player. The results show a decline in the competitiveness of Türkiye and the United States, while for Chile it remains relatively stable and for Iran it gradually increases despite fluctuations. These differences in trade and competitiveness arise from various factors such as transportation costs, government interventions, trade barriers, marketing structures, product quality, and production costs. Identifying these factors can help policymakers and stakeholders develop strategies to strengthen the grape sector's competitive advantage.