The top volume export markets for Golden State grapes included Canada at 11.4 million boxes, followed by Mexico at 5.7 million, and China/Hong Kong at 5.5 million. Per capita consumption for the year was at 9.0 pounds in the United States; by comparison, U.S. per capita consumption in 1970 was only 2.5 pounds, a 360 percent increase in little more than a generation.
Competition, Imports and Exports
Thirty years ago, grapes were a summer treat, available only from May through October. With the world shrinking and demand growing for all varieties of fresh produce year round, suppliers began importing grapes from regions like South America with opposing seasons. Today, countries including Mexico, Peru and Chile keep North American produce departments well stocked with table grapes during the winter and early spring months.
For the most part, imports are complementary, helping to keep up demand. But there is competition from other countries as seasons overlap. Says Zaninovich, “Mexico is the most direct competition—their harvest starts the same time as Coachella Valley—May through June or July. During the middle of our domestic season, July through October, there’s not much competition.”
Jon P. Zaninovich, president and treasurer at Jasmine Vineyards, Inc. in Delano (a relation to above’s John Zaninovich) says, “The appearance of imported grapes decades ago initially elicited gloom and doom among California growers, but today imports have proven to increase overall consumption by making good quality available all year. We’re able to produce and sell over 110 million boxes per year out of California—the Table Grape Commission does a great job promoting the category. Now, there are daily shipments worldwide that enable us to move large crops, (hopefully) at a profit.”
With respect to competition, Nave says, “In May and June, California competes in the United States and in key markets around the world with Mexico, and with Chile as it ends its season; in December and January, competition within the United States is with Chile as it begins its season.”
When it comes to exports, competition ratchets up: “China is the biggest competitor in many Asian export markets,” Nave continues, adding, “but California also competes with grapes grown in Taiwan, Japan, South Korea, China, Australia, Spain, Italy, Greece, and other countries.” The Golden State’s exports are, nonetheless, impressive. “California exports 40 percent of its volume to 65 markets worldwide and 25 of those markets account for 90 percent of California exports.”
One might wonder, with such bumper crops, will the market still be able to absorb such quantities in North America and the rest of world? Nave seems to think so. “Looking ahead, we see the industry continuing to grow. Grapes are a preferred fruit among consumers,” she observes, “and California still has caché in many places. And, in many countries there is a growing middle class, so more people can afford imported grapes.”
Although grapes have been cultivated for thousands of years, if there was ever a region ideally suited to growing the luscious globes—for wine, raisins, or to enjoy fresh—it’s California. From Spanish missions in the 1700s to William Wolfskill’s Los Angeles area vineyards in the 1800s, the Golden State’s location and sublime growing conditions have proven indispensable to the table grape industry.
Today, 99 percent of the table grapes produced in the United States are grown in California, mainly in the Coachella and San Joaquin Valleys. Grapes for raisins, juice, and to some degree those destined to become wine, are grown in these regions as well.
John V. Zaninovich, president of Vincent B. Zaninovich & Sons, Inc. in Richgrove, CA explains, “Climate, soil, and California’s natural barriers all contribute to perfect conditions for growing table grapes. Coachella Valley, where the season’s first grapes are ready by early May, is hot and dry most of the year. The San Joaquin Valley basin, where the harvest starts in June, protects the grapes from coastal moisture and fog. You need a long, dry growing season. Rain is the enemy of mature grapes.”
The fact that both valleys experience extreme temperatures also contributes to the quality of the table grapes grown there. John Harley, vice president of sales and marketing at Anthony Vineyards, Inc. in Bakersfield, clarifies: “The cold temperatures in the winter allow the vines to go dormant, giving them ample rest after they’ve been pruned. In Coachella Valley, the soil is rockier, it gets hot sooner and the season is shorter with harvest in April and May. In Kern County, the climate is more Mediterranean and the harvest season is generally June through October.”
While the Napa, Mendocino, and Sonoma valleys with their varied microclimates are famous for wine grapes, the finest table grapes come primarily from the Coachella Valley and the Southern end of the San Joaquin or Central Valley. “Table grapes require more exacting conditions and growing techniques,” Harley says. “A weather-related disaster will turn table grapes into candidates for raisins or juice.”
Industry Profile
Although China is the world’s top table grape producer in terms of volume (9 billion tons), the United States is still a major player in the worldwide grape trade. The United States ranks sixth according to the U.S. Department of Agriculture, behind Turkey, the European Union, Brazil, and Chile, while both Peru and Mexico are gaining ground in terms of acreage and production value.
Bringing in nearly $5 billion annually, grapes of all varieties are California’s highest value crop. Kathleen Nave, president of the California Table Grape Commission, says 2014 was the second highest volume year ever for the state’s fresh grape growers. “There are 475 table grape growing operations on 100,000 acres of California land,” she says, explaining that the 2013 season’s 116.2 million 19-pound boxes of table grapes was a record, and 2014 was close behind at 110 million boxes. “Call it the new normal,” she enthuses.
The top volume export markets for Golden State grapes included Canada at 11.4 million boxes, followed by Mexico at 5.7 million, and China/Hong Kong at 5.5 million. Per capita consumption for the year was at 9.0 pounds in the United States; by comparison, U.S. per capita consumption in 1970 was only 2.5 pounds, a 360 percent increase in little more than a generation.
Competition, Imports and Exports
Thirty years ago, grapes were a summer treat, available only from May through October. With the world shrinking and demand growing for all varieties of fresh produce year round, suppliers began importing grapes from regions like South America with opposing seasons. Today, countries including Mexico, Peru and Chile keep North American produce departments well stocked with table grapes during the winter and early spring months.
For the most part, imports are complementary, helping to keep up demand. But there is competition from other countries as seasons overlap. Says Zaninovich, “Mexico is the most direct competition—their harvest starts the same time as Coachella Valley—May through June or July. During the middle of our domestic season, July through October, there’s not much competition.”
Jon P. Zaninovich, president and treasurer at Jasmine Vineyards, Inc. in Delano (a relation to above’s John Zaninovich) says, “The appearance of imported grapes decades ago initially elicited gloom and doom among California growers, but today imports have proven to increase overall consumption by making good quality available all year. We’re able to produce and sell over 110 million boxes per year out of California—the Table Grape Commission does a great job promoting the category. Now, there are daily shipments worldwide that enable us to move large crops, (hopefully) at a profit.”
With respect to competition, Nave says, “In May and June, California competes in the United States and in key markets around the world with Mexico, and with Chile as it ends its season; in December and January, competition within the United States is with Chile as it begins its season.”
When it comes to exports, competition ratchets up: “China is the biggest competitor in many Asian export markets,” Nave continues, adding, “but California also competes with grapes grown in Taiwan, Japan, South Korea, China, Australia, Spain, Italy, Greece, and other countries.” The Golden State’s exports are, nonetheless, impressive. “California exports 40 percent of its volume to 65 markets worldwide and 25 of those markets account for 90 percent of California exports.”
One might wonder, with such bumper crops, will the market still be able to absorb such quantities in North America and the rest of world? Nave seems to think so. “Looking ahead, we see the industry continuing to grow. Grapes are a preferred fruit among consumers,” she observes, “and California still has caché in many places. And, in many countries there is a growing middle class, so more people can afford imported grapes.”
“Overall, grapes compete for their share of the grocery dollar with other produce and snack items,” comments John Rast of Visalia-based Rast Produce Company, Inc. “They have an advantage because of their nutritional value, being ready to eat, and competitive price point. Grapes are a consumer favorite.”
‘Sustainability’– Trend or Tradition?
Today’s consumers are more informed about their food and how it is produced than in the past. Many demand ‘local’ fruits and vegetables produced in an environmentally-sensitive or ‘sustainable’ manner.
For many growers, this is a way of life, not a trend, or hype, or a marketing tool. “Sustainability is a buzzword,” remarks Jasmine Vineyards’ Zaninovich. “We’ve been growing grapes since the early 1900s and we’ve been ‘sustaining’ all along. We’ve been taking care of the land and vines for three generations.”
Zaninovich of Vincent B. Zaninovich & Sons adds, “We’ve been ‘green’ all along by utilizing integrated pest management, compost, and natural fertilizers. You have to do these things to keep soil in good condition; sometimes we employ techniques from 60 years ago.”
Justin Bedwell of Bari Produce, LLC in Madera says, “Agriculture by definition is and always has been a sustainable industry. All farmers take pride in producing from the land and taking care of their land so the process can be repeated. Consumers want great eating fruit at a reasonable price. If that happens to be from a company that emphasizes sustainability, I think all the better from the consumer’s standpoint. However,” he counters, “I don’t see any producers completely reinventing their operation just for the sake of being perceived as more ‘green’ unless there are additional benefits to the producer.”
Challenges on the Horizon
Despite recent record harvests with excellent quality, the elephant in the room is California’s ongoing drought. With water so elemental to their operations, growers have always been mindful of how they must conserve this resource.
“The last two years have been record harvests, but labor and water issues have increased our costs,” comments Jared Lane of Stevco, Inc., located in Bakersfield. While other growers around the state have fallowed acres or switched to crops that use less water, this isn’t really an option for grape growers.
“With our fourth year of drought, we may have reached the peak,” explains John Zaninovich. “Though grapes are not the highest water users, it is a permanent crop. We can’t tear vines out in dry years.” He believes the state hasn’t done its part in creating better water storage. “Most growers rely heavily on groundwater,” he says.
Louie Galvan of Fruit Royale, Inc., headquartered in Delano, also concedes that even with the record harvests, “The last two years have been challenging due to the drought. The future depends on the amount of fresh water available to us in order to sustain growth.”
Of course, none of these challenges are new to the industry. Bari Produce’s Bedwell says, “California has many challenges that need to be addressed if the future is to remain bright for table grapes. Chief among them are water supply and costs; labor and immigration issues; state and federal regulations; invasive pests; and healthcare mandates.”
FRESH FORUM Have you made any major changes in how you plant, grow, or harvest your grapes?
Jared Lane – Stevco, Inc.
Variety selection: these are changing every day. Also, there are new materials to better the product like new fertilizers and sprays to battle mildew.
John Zaninovich, Vincent B. Zaninovich & Sons, Inc.
Over the years, trellis systems have changed to make the grapes easier to pick and produce bigger yields. We’ve also implemented advances in irrigation—now it can be more precise so we can be more conservative with water. But some things haven’t changed in years—stick a piece of wood in the ground and hope for the best.
Justin Bedwell, Bari Produce, LLC
We’ve been investing in drip irrigation the past 10 to 15 years, and all our grapes are watered by drip now. We’ve also been working on proper trellis systems tailored for each variety that allow the vines to hang in such a way for good air movement.
Jon P. Zaninovich – Jasmine Vineyards, Inc.
Over the years we’ve changed the way we plant by putting in disease-resistant root stock instead of natural roots. The use of trellises has evolved for ease of picking and to make vines more productive. We’ve also gone to pouch bags, which offer more real estate for point-of-sale merchandising, and are more convenient for consumers.
Peeking into the Future The consensus in the table grape industry is that despite concerns about water availability and other obstacles old and new that come with agriculture, the future still looks positive.
Lane sees “slow, steady growth in box count. We’re planting new varieties that taste better and can be grown at the lowest production cost. Every time we plant a new variety, we have to learn about how it grows and stores—this can take years of development to find the correct balance. New varieties are a big gamble.”
Anthony Vineyards’ Harley also sees continuing growth. “I think our industry will continue to increase; 2014 was down a bit from 2013 due to some changeover in varieties. Old ones were taken out, and newer put in. Established Thompson vineyards that have reached maturity are being replaced by seedless red varieties like Flame, Timson, Timco, and Majestic. Some of the newer ones including Luisco and Autumn King are stretching the harvest through November and December, when in the past we relied on stored grapes to get through the late fall.”
Bedwell’s take on the future is ‘bigger and better’—“Our industry will get bigger. More grapes are going in the ground and all the newer varieties have great production and acre yields.”
Fruit Royale’s Galvan remarks, “As demand grows, so will our industry. The growth is not only domestic, but on an international scale, too. We expect a 20 percent increase in tonnage in the next five years.”
Photograph courtesy of the California Grape Commission.
