“Grape supplies are becoming increasingly scarce,” says DJ Forry’s Ray England, explaining the current availability of California grapes.
The state’s lower grape supply is reportedly tied to the recent Hurricane Hilary. The California Table Grape Commission reports that about 25 million boxes of table grapes were lost due to the weather phenomenon. “In addition, the quantity of the main white variety in the final part of the distribution, Autumn King, has already been reduced,” adds England.
However, the economy is at stake and producers are considering whether it is economically viable to harvest and pack the grapes. England points out that California’s minimum wage increase is a factor to consider, especially as producers move into a market where half the volume is lost.
Prices are increasing
In return, FOBs gain strength. “I think FOB prices will continue to rise because supply is tight. As each farmer switches to a new variety, he or she evaluates the labor costs of removing the variety from the vineyard. “Is it worth it or is it a total loss?” he says. The question of demand remains: Will there be a price cap if consumers realize that grapes are not a must-have for them? “Everything finds its place, and I believe that.” Retailer “We will respond,” England continues.
The question now is: What will the end of California’s grape season look like if they switch to imports? “I would bet on an early end,” he says. “Typically there is a lot of volume through November, with some varietals arriving nationally by the end of the year.”
This, in turn, may put pressure on other countries that supply grapes to the US market, such as Brazil, to start their seasons earlier than normal. “Once the stone fruit is gone, the grape is the income-generating item in the country Retailer. Neither the prices nor the demand will be atypical for importers. Will it be an opportunity? Yes, of course,” concludes the expert.
