Shine Muscat Grapes Korean grapes are very popular in the overseas market. The annual export amounts of (fresh) grapes have rising trend, US$1.38 million in 2012, 1.69 million in 2013, 2.25 million in 2014, 3.28 million in 2015, 5.12 million in 2016 and 8.49 million in 2017. Especially, Shine Muscat grapes with the strong points of fragrant flavor and no seed have grown as a profitable product of grape export market. Among the Shine Muscat growers across the country, San Terroir Corporation in Sangju, Gyeongbuk catches eyes by a rapid growth, 80 tons of export and US$935,000 of export amount during 3 years after establishment.
Production of High Quality Shine Muscat Grapes through Enough Preparation
The total sales of 24 grape growers in San Terroir Corporation was KRW1,940 million and the average sale per grower was about KRW80 million. Such total sales were over double KRW810 million in 2015. The reason of rapid sales growth was that they turned their eyes to the export market. The actual exports last year were 90 tons, which surged more than 10 times 8.4 tons in 2016 and 8.1 tons in 2015. Such increase of exports was resulted from the robust preparations by San Terroir Farming Corporation.
They have a cooperative grading center, cold-storage warehouse and storage facility for loading. Also, they are extending the cooperative grading center and the grading lines for entering Chinese market, etc. The profitable items for export were converted from Campbell to Shine Muscat.
Global GAP certification as well as GAP certification in Korea for the production facilities were all obtained. In order to meet the various requirements of overseas customers, they diversified their products such as 500g and 600g of 8 packs, 750g and 1kg of products with a bunch of Shine Muscat, 2kg and 4kg of products. Kim Dong-geun, CEO of San Terroir Farming Corporation, said, “Our goal is that the average annual income per grower reaches over KRW200 million through the export of all our high quality grapes”.
Targeting Overseas Markets through Quality Control by Grade and Continuous Training
They controlled quality by grade for quality standardization, and continued to visit the Rural Development Administration and leading farms for receiving educational training. As a result, they exported Shine Muscat grapes with over 18 Brix of sugar content to 8 Southeastern Asian countries such as Taiwan, Hong Kong, Vietnam, Singapore, Indonesia, Malaysia, Myanmar and Thailand. This year, they are trying to enter Chinese market through being designated as the export complex, etc. and obtain Halal certification to enter the Halal market. They have already been designated as an export complex by Canada.
They are now trying to enter the US and UAE markets. To do this, they have a plan to participate in the exhibitions which will be held in Paris, France (October), Ho Chi Minh, Vietnam (November), Beijing, China (November), Shanghai, China (November). CEO Kim Dong-geun said, “Shine Muscat is a fragrant seedless grape and appeals to younger generations. It has a solid flesh and is excellent in the storage, which favors its exports. Our grapes are grown 350m above sea level, and their sugar content and unique fragrance are superior to the ones of other areas”.
Challenge to Export Expansion through Overseas Market Expansion and New Variety of Grapes
This year’s export target is 400 tons (KRW6 billion in sales). Next year’s goal is planned to be 500 tons (KRW10 billion in sales). The goal of San Terroir Farming Corporation is to achieve the grower’s average income of over KRW200 million per year based on the exports. In the medium and long term, they prepare step by step for the response to any change of the grape consumption flow. In order to introduce a new variety of grapes, they went on a field trip to the advanced vineyard in Japan last year and will conduct cultivation experiment in some farms this year.
CEO Kim Dong-geun said, “All growers obtained Global GAP certification and were designated as the export complex. We will extend our cooperative grading center and participate in the exhibitions to be held in Beijing and Shanghai so that our farming corporation may be designated as the export complex by China this year”. He also explained, “We will obtain Halal certification to enter the Muslim countries in Southeast Asia and Middle East. We will be stably positioned in the export markets by boosting the value of our brand, San Torroir through the grape production by Claim Zero and consistent high quality”.
Tel : (CEO, Kim Dong-geun)
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