Prices for early table grape varieties from California have been good so far, and production estimates suggest this year's crop could top production from the previous season. As the season moves north to the Central Valley, there's cause for optimism about the 2016 table grape season in California.“The fruit is looking good because the vines got a good drink of water this winter,” said Ray England with DJ Forry. “There's the Arvin deal going, and we'll start with Delano and Reedley in July.” He added that conditions have been favorable so far, though he's not sure how fruit will react to high temperatures that are expected in the next few days.
Prices have been on par with those that closed out the season last year. There are still some Mexican imports around, though those are clearing out. It will take more domestic production to see if the dynamics of supply and demand move the market in any particular direction.
“The first inclination at the start of the season is to see where you were the previous season and go from there,” said England. On June 27, prices for an 18-pound container of large Sugarones from Coachella were mostly between $18.95 and $20.95, and prices for a container of large Summer Royals were mostly between $22.95 and $24.95.
Industry far from static
The research and development of new grape varieties is continuous, and investment in that has yielded many new varietals over the last few years. Though many of them are promising, it will take time to see how new grapes will perform in the market.
“You never know how the new varietals will really perform year over year when compared to the tried and true ones like Thompsons and Autum Kings,” said England. “But there are many growers who are looking to carve out niches with new varieties, and there's lots of growth in looking at new red varietals.”
Much of what is affecting the industry, however, is out of the control of growers and shippers. Currency fluctuations, for instance, have a big impact on export sales. But changing labor dynamics are also likely to have a big effect on the market for grapes.
“The minimum wage in California has been increasing over the last 10 years, and it's set to increase more in the next few years,” noted England. “By comparison, F.O.B. prices have not kept up, so we'll see how that affects incremental costs of doing business. You can get better yields per acre, but then you need more demand to offset that added production. It will be interesting to see how it will all play out.”
For more information:
Ray England
DJ Forry
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