Ontario Wineries to Pay Less for Grapes
Anticipated surplus forces prices down in negotiation process
Ontario's Appellations. Map courtesy of VQA Ontario.
Toronto, Ontario -- Despite a cool, wet growing season, grapegrowers in Ontario expect that a surplus of grapes will be available for wineries this fall. This potential surplus influenced the negotiations for winegrape prices between the Grape Growers of Ontario and the Wine Council of Ontario and resulted in lower prices for vinifera grape varieties for 2009. Most white vinifera varieties are down about 7% in price, and red vinifera varieties are down 8%. The exception is Shiraz, which is 1% higher. Prices for hybrid varieties will remain steady to slightly lower.
The minimum prices at which winegrape varieties can be bought or sold in Ontario this year were set by negotiations that took place on July 20 and 21. Growers contract directly with processors, but prices cannot be lower than those established by negotiation.
While negotiations included a review of the current state of the grape and wine industry and sales projections for VQA and Cellared in Canada wines, the potential surplus of grapes caused the most disagreement. The Grape Growers of Ontario estimated the supply of grapes available at 56,773 tonnes (62,450 U.S. tons) and the Wine Council set the number to be purchased at 47,800 tonnes. When negotiations ended, the Wine Council agreed to include an additional 2,200 tonnes for purchase during the harvest.
The negotiations covered winegrapes only. In Ontario, labrusca varieties are classified as juice grapes rather than winegrapes. Prices for these varieties will be set in about a month through negotiations between the Grape Growers of Ontario and a separate committee of processors.
Other prices related to late harvest wines or ice wines are unchanged from last year. The minimum price for ice wine grapes is 125% of the price based on normal harvest. Ice wine juice prices are CAD$15.76 per liter at 35＜ Brix for hybrid juice, and CAD$24.16 per liter at 35＜ Brix for vinifera juice (CAD$1 = US$0.93). The price for late harvest hybrid juice stays at CAD$4.58 per liter at 26＜ Brix.
Sugar standards are a system of bonuses and penalties adjusting the grape price on the basis of sugar content (＜Brix). For each of the 17 varieties for which sugar standards have been approved, the negotiated price is the base price to which the sugar content adjustment is made and determined by the running five-year average for each variety. The price adjustments can range from 50% to 125% of the base price, depending on sugar content.
The following prices for some winegrape varieties in 2009 are quoted in Canadian dollars per tonne.
GRAPE VARIETY CAD2009 CAD2008
De Chaunac and Rosette: $659 $659
Mar└chal Foch: $780 $788
Baco Noir and Chambourcin: $843 $860
New York Muscat: $520 $520
Seyval Blanc and Vidal: $588 $600
Johannisberg Riesling: $1,368 $1,471
Auxerrois: $1,192 $1,229
Chardonnay: $1,396 $1,509
Gew┨rztraminer: $1,524 $1,639
Pinot Gris: $1,563 $1,672
Sauvignon Blanc: $1,539 $1,655
Gamay and Zweigeltrebe: $1,283 $1,395
Pinot Noir: $1,933 $2,101
Cabernet Sauvignon: $1,875 $2,038
Cabernet Franc: $1,676 $1,822
Merlot: $1,894 $2,059
Shiraz: $2,16 $2,143