2021 GRAPE CROP
At this stage, the overall grape crop for 2021 looks like a potentially substantial crop. There are many bunches and what stands out almost shockingly is the length of bunches. We are currently in bloom or post bloom with no indication of any possible berry shatter. There is a long way to go but it is a perfect start. The only variety that is showing a little inconsistency is Old Vine Zinfandels. In general, however, the crop on the Old Vine Zinfandels is much better than last year.
WATER, WATER, WATER NOT HERE
There is a very serious drought condition throughout the State. Allocations from Water Districts are no more than 10% and most are at 5% of past assessments. Of course, most growers have groundwater from their wells, especially in Northern California to irrigate their grapes. In some areas, there may not be enough well capacity to supply their entire acreage in a timely manner. There was only one substantial rain storm this past winter. The depth of the snowpack in the mountains was one of the lowest in years. The runoff this year will be insignificant. Water issues are the primary topic of concern among growers.
WEATHER
Our weather pattern for the last month has been cool nights and warm days. The daytime temperature differential has ranged once as high as 40 degrees F and probably average close to 30 degrees F. It could be a reason that bunches have substantial growth, and the vines look so vigorous. Grape maturity will be later than last year. Other crops are about a week later than normal. The combination of this beautiful weather that promotes vine growth, and the apparently very good crop, will bring us to a later harvest.
There is growing and rightful concern about potential forest fires this summer. The very dry winter has everyone scared. I hope we never have anything close to what happened last year.
INFLATION EVEN IN GRAPES
As we had mentioned in previous Crop Updates, the price of grapes has gone up a minimum of $50.00/ton to $200/ton from 2020 prices. This was due to the light 2020 crop and the tremendous amount of smoke taint grapes in the Coastal Regions that were not harvested. There is no substantial volume of wine available in California. The wineries need all the grapes they can get this year.
What we are starting to find out is that transportation increases might be at least $100 ton higher to the East Coast and proportionally to the rest of the States. With fuel currently going even higher this can be very scary. Let’s hope that scenario changes.
Our packing supplies are also significantly going higher. The cost of the wooden pallet may approach $.50 a lug or $27.00 a ton. We will probably not pack any wood boxes this year because of the difference in costs in materials, and everything will be in corrugated plastic cartons, even 42 lb lugs. We have already ordered our bins for winery shipments without a price!!!
Labor is also a known unknown entity. As an employer who has had a very loyal labor force especially in Northern California, we do not normally have concerns. Towards the end of last year, we did lose some employees to the marijuana industry. The marijuana harvest industry pays CASH daily to their employees at a much higher rate than other agriculture industries can afford. Together with the current labor situation throughout the country, these concerns are justified.
With the reopening of America, we hope everyone has a great Memorial Day Holiday.
