- by Tim Linden | July 15, 2020
The ongoing trend in California’s San Joaquin Valley fresh table grape production toward newer varieties has resulted in peak supplies shifting a bit later in the summer with stronger fall production. This year shippers are anticipating promotable supplies from late July through Thanksgiving and into December.
“We see the ability to promote each color throughout the season, with even higher volumes of reds mid-September through October and green late August through October for the larger promotions,” said Brett Dixon, president of sales, Top Brass Produce, Bakersfield, CA.
His comments were echoed by many other, with the general consensus also agreeing that total volume is not expected to be up this year as the supply of green grapes are expected to be down a bit on the front end of the deal. Dixon explained that California’s Central Valley saw more rain in April this season than in the last decade. “This is one of the reasons you will see lower availability in the industry on green grapes in particular,” at the start of the deal, he said.
Jared Lane, vice president of marketing and sales for Grapeman Farms, which is headquartered in Los Angeles, predicted that peak production for 2020 will come during September and October, whereas a decade ago supplies peaked in August. He said the proliferation of the newer varieties is great for business as they eat better, and he predicted they will lead to an increase in per capita consumption of table grapes. He added that the newer varieties continue to see acreage gains as growers switch away from the older varieties. He added that Grapeman Farms is expecting a big jump in volume in 2021 as it adds a couple of new varieties to its mix.
Rob Spinelli of Anthony Vineyards, Bakersfield, CA, said the total California grape volume this year has been estimated at about 106 million cartons, which is a good crop but not a record breaker, and may end up slightly lower than 2019. Echoing comments heard from several other shippers, Spinelli said the drop in early green production and the transition of acreage is the cause for the slightly lighter supplies. But again like everyone else, he predicted a very bright future.
He also noted that many of the newer varieties are peaking later, which is allowing the California industry to sell grapes through the fall and into the official start of winter. This lengthening of the season helps in many ways as it stretches out the volume and results in grapes getting into a time of year when retailers are looking for more fruits to promote. As fall approaches, the stone fruits that get great shelf space during the summer wind down their volume creating more retail opportunities for fresh grapes and the new high-tasting varieties.
One issue that has not caused significant disruption problems for grape growers has been the COVID-19 pandemic. Louis Galvan, owner of Fruit Royale in Delano, CA, said that all businesses have been impacted in one way or another, but as far as fresh commodities are concerned, grapes have not taken a big hit. Of course, grapes are sold in the foodservice arena but it is a much smaller percentage of total sales than exists with other fresh produce items, such as leafy greens. And he said the well-reported spike in retail business has made up for losses at restaurants, institutional feeders and from the wholesalers that service those accounts.
Spinelli of Anthony agreed, noting that while it has been a challenge dealing with new protocols, shippers have been able to get their product to market during the first few months of the pandemic. He repeated the oft-heard phrase when the concept of crises impacting the produce industry are discussed: “People still have to eat.”
He did note that grapes sales are very dependent on promotions as the category, like many fruits, is an impulse buy. Consumers shopping online or making quick in and out runs to the supermarket are not the most advantageous situation in which to sell an impulse item. But grapes have done well in the spring and there is every expectation that will remain true through the rest of the year.
On July 7, Sean Stockton, president of Sundale Sales, Tulare, CA, said the market price for the San Joaquin Valley table grape season is opening up very well as both Mexico and Coachella Valley are winding down. “Greens are at $26.95 while reds are opening at $22.95. Those are good prices and much better than last year when we still had a lot of grapes coming from Mexico and Coachella,” he said. “We are hoping for a good season with a comfortable middle ground on price where we can get more than our costs back.”
He said the early estimate of a total California crop of 106 to 108 million cartons appears to be high as it looks like Coachella alone will be down 1.5 million. “It is looking like it (total volume) will be closer to 100 million.”
Stockton said that is a very manageable number and should produce a successful season.
The Link LonkJuly 15, 2020 at 02:05PM
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California grapes shift to SJV with later volume, newer varieties - TheProduceNews.com
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