Grape Crush Report reveals decade’s lightest wine crop
The average price of Napa County caber- net sauvignon grapes hit a new record of $8,947 per ton. Despite the low yields, grower reve- nue for North Coast vineyards in Napa, Sonoma, Mendocino and Lake counties reach $1.39 billion, the region’s sixth-high- est total on record. Napa County led the pack, bringing in more than $860 million, an increase in revenue of nearly 20% com- pared to the prior year. Lake County produced 21,214 tons of cabernet sauvignon, a historic figure for
the county, while still seeing higher pric- es than the prior year. Mendocino County increased its tonnage by 30%, while seeing slightly lower pricing. Experts attributed the increased production in those counties to new vineyards coming online. On the Central Coast, the overall ton- nage was down by 130,000 tons, with prices trending upwards for bulk wine, especially cabernet sauvignon from Paso Robles. Meanwhile, winegrape production in
By Caleb Hampton California winegrape growers last year harvested the smallest crop of any year within the past decade, according to the California Department of Food and Agriculture’s Preliminary Grape Crush Report, an annual benchmark for the winegrape and bulk wine sector. The overall 2022 winegrape crush of 3.35 million tons was the lightest since 2011, the Feb. 10 report said. Because of weather and other factors, wine sector experts had forecast a light harvest. However, the crush “was even lighter than anticipated, further empha- sizing the impact of drought conditions, a severe frost, and ongoing vineyard remov- als particularly in the Central Valley,” Greg Livengood, president of Ciatti Company, said in a statement released by the global wine and grape brokerage. The sector’s third consecutive “short” year, or small harvest, is not altogether bad news for winegrape growers or bulk wine sellers. With demand for wine stagnat- ing over the past couple years, the small- er-than-average yields have kept inventory low and prices high. “It’s probably good that we didn’t have that large of a crop because I think that would have affected the supply and de- mand balance,” said Glenn Proctor, own- er and vintner of Puccioni Vineyards and partner at Ciatti Company. “We’ve kind of backed into a balanced situation.” In 2022, California winegrape prices were on average their highest on record. However, leaders in the sector pointed out that the strong pricing has not translated into a windfall for vineyards. “The challenge, if you’re a grower,” Proctor said, “is you get paid in dollars per ton. If my tonnage is down, that means my gross is potentially less.” Meanwhile, the materials, labor and other input costs for winegrape production increased for many growers, narrowing their margins. “It’s been difficult to pass along some of the costs that they’re seeing,” Proctor said. “I think it makes the overall mar- ket opportunity potentially smaller and more competitive.” Beyond the market dynamics, the 150- page grape crush report revealed notable trends in California’s winegrape sector. For the first time, cabernet sauvignon surpassed chardonnay in total tonnage, making up 15.4% of all the grapes harvest- ed, with chardonnay trailing at 14.4%. Red wine varieties made up the largest share of all grapes crushed, coming in at 1.89 million tons, down 7.2% from 2021. White wine varieties totaled 1.46 million tons, down 8.6% from 2021. Across all varieties, the average price was $910.80 per ton, up 5.7% from 2021. Red wine varieties went for an average of $1,150.58, up 7.2%, while white varieties fetched $682.07, up 1%. All of those figures are record highs. Napa County, or District 4 in the report,
had the highest pricing at $6,847.19 per ton, an increase of 12.2% from 2021. Prices for winegrapes from District 3, Sonoma and Marin counties, were also up, selling for an average of $2,858.39 per ton. Statewide, cabernet sauvignon pricing rose by 13.8% to $1,892.40, while chardon- nay prices went up by 3.9% to $1,014.63.
See CRUSH, Page 8
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February 22, 2023 Ag Alert 3
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