Grape growers see rebound

Lodi-area grape prices rebounded sharply last fall, hitting an average of nearly $480 a ton, according to a new state report.

That's a level not seen since 2000, when a glut of new vineyards began to oversupply the market.

But while producers received a more than 20 percent bump in price per ton over 2007, a much smaller 2008 crop meant the value of the district's fruit came to about $253.2 million, only about 3percent more than the previous year's $245.9 million crop.

According to the preliminary Grape Crush Report issued Tuesday, the average price for 2008 grapes crushed for wine, juice and other products topped $544 a ton, up 4percent from the year before. California vineyards sent 3.66million tons of grapes to the crushers last fall, just a bit less than 3.67 million tons in 2007.

But much of that tonnage was from less-costly raisin and table grape varieties.

Wine varieties weighed in at an estimated 3.05 million tons, down 6 percent from 3.25 million tons crushed in 2007, according to the report from the California Department of Food and Agriculture.

For San Joaquin County, where winegrapes are the second most valuable commodity, after milk, 2008's harvest was a mixed bag, said Kyle Lerner, president of the Lodi District Grape Growers Association.

"We did see some increase in prices, which were certainly beneficial for growers," he said Tuesday. "Unfortunately, ... we also saw an overall reduction in the crop level as well as significantly increased prices for materials and the cost of farming.

"When it was all said and done, I don't know that we were in any better financial picture than in 2007."

Untimely weather took a toll on San Joaquin County vineyards last year, with events including shoot-killing spring frosts, strong gusty winds during the grape flowering period and a damaging fall heat wave.

Stuart Spencer, program manager, said the poor weather affected some growers more than others, particularly frost damage that seemed to hopscotch from vineyard to vineyard.

Statewide, production of some grape varieties dropped more sharply than others.

Ciatti Co., wine and grape brokers in San Rafael, noted that cabernet sauvignon production was down nearly 24 percent from 2007; there was 26 percent less merlot available in 2008, and chardonnay production was off 4 percent.

The Lodi growing district leads the state in production of all three of those most popular winegrapes.

And that could spell strong demand and better prices for growers in the future.

"If you look at the wine market, it's continuing to grow," Spencer said.

And despite the economic downturn, consumers continue to buy wine - total consumption is growing but at slower rates than in the recent past - but are turning to less expensive labels.

"The brands that are doing well are built upon the quality of Lodi grapes," Spencer said Tuesday from his Lodi office. "They are going to need more grapes to supply those brands. That's an optimistic outlook for Lodi growers."

The Winegrape Commission is supported by district growers through an assessment on their fruit.

And while the 2008 crop was down, Lerner said quality of the fruit that was produced held up very well.

"We were pleasantly surprised," he said. "We had everything but snow in July. ... I think the vintage itself is not too far off 2007, and 2007 was one of those vintages of the century."