Sunday, February 19, 2012

Wine-grape harvest down 7 percent

The total California crop of wine grapes harvested in 2011 was 3.34 million tons, down 7 percent from 2010, according to a Preliminary California Crush Report released Friday.

Although the crops harvested were right on the five-year average, many key varieties posted sharp decline, especially in Coastal regions.

“Even though the crop in total was equal to the five-year average, the key fact is that it was far short of demand,” said Brian Clements, vice president of Turrentine Brokerage. “Consumer sales continue to grow, and wineries would have liked to have crushed hundreds of thousands of additional tons.”

Chardonnay, cabernet sauvignon, merlot, sauvignon blanc, zinfandel, and syrah all posted sharp declines from 2010. Only two major varieties had larger crops in 2011: pinot noir and pinot grigio, which increased due to recent new plantings and healthy yields in the Central Valley.

Pinot noir was down in the coastal areas but statewide both pinot noir and pinot grigio had their largest crops ever in 2011.

“The crop of zinfandel in the Lodi area was down 25 percent from 2010, caused largely by lower yields, and the continued shift towards red wine. This will keep the market active for 2012 grapes and bulk wine,” said Erica Moyer, partner/broker with Turrentine Brokerage.

The Central Coast crop was hammered by frost in April 2011, causing crop harvests to drop 28 percent from 2010.

“San Luis Obispo and Santa Barbara counties were hit especially hard, down 35 percent,” said Matt Turrentine, partner/broker with the firm.

Crops in California’s northern coastal areas were down 11 percent but Brian Clements, vice president of Turrentine Brokerage said the harvest could potentially have been much smaller had growers and wineries not cooperated to gather grapes early in many cases.

The average-sized crop comes at a time when industry inventories are at record lows.

“There is increased demand for all the major varieties, most of which experienced lighter crops. Supply will remain short for the foreseeable future, keeping prices strong for grapes and bulk wine. Ultimately, consumer prices will increase as well,” said Steve Fredricks, president of Turrentine Brokerage.

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