DUNDEE, Ore. — Wine grape growers are joining the list of agricultural groups calling on USDA for financial relief.
Recent industry research from Gomberg, Fredrikson and Associates, a wine data analytics organization, projected that by the end of 2020, U.S. wine grape growers will lose at least $5.94 billion.
"Most of our wholesale business evaporated, and we're the lucky ones because we were already mostly direct-to-consumer. I'm hearing stress in the voices of a lot of growers who don't have all their fruit sold for the year," said Donna Morris, a grower and owner of Winderlea Vineyard and Winery in Dundee, Ore.
According to data released in June, California growers are expected to lose $437 million in sales this year.
In May, Oregon growers lost, on average, 73% of sales in tasting rooms and 45% in wholesale, according to the Oregon Wine Board.
Sara Higgins, advocacy and education manager for the Washington Winegrowers Association, said her organization has contracted a firm do an economic impact report for Washington state, which should be ready in August. Anecdotally, she said small wineries especially are experiencing COVID-19 fallout.
Despite these challenges, wine grape growers were left out of the USDA's $16 billion federal farm aid package, the Coronavirus Food Assistance Program, called CFAP for short.
Experts say the reason wine grape growers weren't included is their commodity has not yet seen a price decline for 2020. Wine grapes will be harvested and crushed this fall, and that is when growers will feel the hit — when they struggle to find a home for their fruit.
Because of the drop-off in wine sales this spring and summer, wine researchers predict that certain wines will not sell in their expected timeframe, slowing grape sales.
The plummet in winery visits and wine sales at restaurants, Higgins explained, will have a "domino effect" on growers come harvest.
"The hit to Washington wine grape growers is yet to come," said Higgins. "So, we need relief for when it does, for when wine grapes are not contracted and sold."
Growers say the virus has exacerbated already-existing problems for the industry, including an oversupply of grapes from the past few years.
"Grape prices were bad before the COVID-19 pandemic hit, but now we are confronted by the prospect of a financial disaster for growers," said John Aguirre, president of the California Association of Winegrape Growers.
Mike Testa, chairman of the same association, said in a statement he has never seen so much uncertainty in the marketplace, with growers struggling to find buyers, tearing out vineyard acres and bracing for "extraordinary challenges."
Although some wineries have qualified for the Paycheck Protection Program, Economic Injury Disaster and USDA Disaster loan programs, growers say it's not enough.
Wine grape grower associations are petitioning for grapes to be included in the next round of federal aid. Association leaders in Oregon, Washington and California told the Capital Press they are in ongoing conversations with USDA.
The Link LonkJune 30, 2020 at 06:45PM
https://ift.tt/2BSx2ic
Wine grape growers brace for COVID-19 hit, call for federal aid - Capital Press
https://ift.tt/3eO3jWb
Grape
No comments:
Post a Comment