Prices for Thompson seedless are up from $65 a ton to $90.
FRESNO, Calif. (AP) – Some California grape growers may fare a little better this harvest season because prices for some varieties have increased, possibly ending several years of rock-bottom offers.
Prices for Thompson seedless, one of the most widely grown grapes for wine, raisins and juice concentrate, have increased from last year’s $65 a ton to $90 a ton this year. Prices for white zinfandel have increased from $65 a ton in 2002 to $75 to $175 a ton this year.
The state’s grape growers have suffered because more vines were planted in the 1990s. Growers also compete with countries where production and labor is less expensive.
“Things are definitely looking better,” said Richard Garabedian, Raisin Administrative Committee president, one of 50 growers who protested in front of an E.&J. Gallo winery last year after being offered the lowest prices in decades. Gallo, the largest winery in the world, offered between $115 to $150 per ton in 2000, depending on the variety.
“I think we probably turned a corner,” Garabedian said. “Next year is going to be fantastic based on the production coming in this year and trade demand.”
But while prices are better, growers still aren’t making profits. The prices remain below the cost of production. It costs about $800 or more to grow a ton of grapes, depending on variety.
“It’s a good turn in the right direction… but it’s still not at a price where the growers are able to break even,” said Nat DiBuduo, president of the Allied Grape Growers, a statewide marketing cooperative.
Rain and a sizzling summer in the San Joaquin Valley, where much of California’s grapes are grown, caused depletion of some crops. But farmers still paid water, labor and other costs. Hot weather during the spring also caused shatter – a term growers use when the bloom falls off the vine.
Still, farmers are hoping this season will be the break they need. As demand for Charles Shaw, also known as Two Buck Chuck, and other budget wines increases, growers hope wineries will continue buying to decrease a surplus.
Raisin farmers have also ripped out or pruned 35,000 acres in the past year and sold 40,000 tons of raisins as cattle feed to help decrease a glut of raisins. The federal government also has been enlisted to help and bought 20,000 tons of raisins.
Other growers also have abandoned vineyards or planted other crops because of such low prices, making a dent in the grape glut.
Lodi grower Bruce Fry is careful before saying he’s looking forward to this year’s harvest. Fry, who stays afloat with his diversified vineyard, said there’s still a slump for varieties like cabernet because of a surplus.
“But it’s looking up. There’s a light at the end of the tunnel because the crop is lighter this year,” he said. “We just need people to increase consumption.”
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On the Net:
Raisin Administrative Committee: http://www.raisins.org
Allied Grape Growers: http://www.alliedgrapegrowers.org
AP-ES-09-22-03 0201EDT
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