As California’s famed table grape season begins with May’s early varieties from Coachella Valley, buyers and sellers alike look forward to the sweet swell of demand. The 2015-16 season gave Golden State growers their third largest crop in history with 110.5 million boxes, and set the record for crop value at $1.83 billion. This year promises another bumper crop with growers looking to hit a fourth consecutive year of significant and possibly recordbreaking volume.
Over 85 varieties of green, red, and black grapes are nurtured with “proper water, ideal consistent temperatures, and patience” for the perfect crop to come into fruition, says Peter Vallis, manager of grower-shipper EG Enterprises.
For the state itself, competition is in overdrive with a steady replacement of old varieties by exciting new cultivars that boast longer shelf life, better taste, and fill in the gaps between growing seasons.
Thriving International Exchange
Although uncertainties loom, the export market is huge business for table grape suppliers, shipping to 50 different countries worldwide according to the U.S. Depart-ment of Agriculture.
For Giumarra Vineyards Corporation, a Bakersfield grower-shipper, Asia is by far its biggest export market. Varieties like Passion Punch red, which has a late window, are groomed perfectly for the export market.
“Exporters want later varieties because tariffs come down in October, so we try to get them the latest grapes we can,” says Mimi Corsaro-Dorsey, vice president of marketing and director of export sales for Giumarra.
The Chuck Olsen Company in Visalia also ships a great deal to the Asian markets, with China and Korea as its biggest receivers. Jeff Olsen, president of the company, is optimistic that new varieties will cause an uptick in exports.
Derrick Daniell, president of Double D Sales Company, Inc. in Visalia, who also sends much of his supply to Southeast Asia—Hong Kong, China, the Philippines, and Indonesia—sees the export market continuing to rise as well. “We focus on growing for export markets,” he says, noting this year’s spring was “the start of a good quality season.” Mother Nature, he says, gave suppliers “a beautiful crop.”
Although many in the industry are heavily involved in exports, they deal with their share of both domestic and international challenges. According to Louie Galvan, director of Fruit Royale, Inc., these “include but are not limited to the quality of the product at the time of demand, domestic demands on the product available, money exchange rates, and an ever-changing world market.”
As California’s famed table grape season begins with May’s early varieties from Coachella Valley, buyers and sellers alike look forward to the sweet swell of demand. The 2015-16 season gave Golden State growers their third largest crop in history with 110.5 million boxes, and set the record for crop value at $1.83 billion. This year promises another bumper crop with growers looking to hit a fourth consecutive year of significant and possibly recordbreaking volume.
Over 85 varieties of green, red, and black grapes are nurtured with “proper water, ideal consistent temperatures, and patience” for the perfect crop to come into fruition, says Peter Vallis, manager of grower-shipper EG Enterprises.
For the state itself, competition is in overdrive with a steady replacement of old varieties by exciting new cultivars that boast longer shelf life, better taste, and fill in the gaps between growing seasons.
Thriving International Exchange
Although uncertainties loom, the export market is huge business for table grape suppliers, shipping to 50 different countries worldwide according to the U.S. Depart-ment of Agriculture.
For Giumarra Vineyards Corporation, a Bakersfield grower-shipper, Asia is by far its biggest export market. Varieties like Passion Punch red, which has a late window, are groomed perfectly for the export market.
“Exporters want later varieties because tariffs come down in October, so we try to get them the latest grapes we can,” says Mimi Corsaro-Dorsey, vice president of marketing and director of export sales for Giumarra.
The Chuck Olsen Company in Visalia also ships a great deal to the Asian markets, with China and Korea as its biggest receivers. Jeff Olsen, president of the company, is optimistic that new varieties will cause an uptick in exports.
Derrick Daniell, president of Double D Sales Company, Inc. in Visalia, who also sends much of his supply to Southeast Asia—Hong Kong, China, the Philippines, and Indonesia—sees the export market continuing to rise as well. “We focus on growing for export markets,” he says, noting this year’s spring was “the start of a good quality season.” Mother Nature, he says, gave suppliers “a beautiful crop.”
Although many in the industry are heavily involved in exports, they deal with their share of both domestic and international challenges. According to Louie Galvan, director of Fruit Royale, Inc., these “include but are not limited to the quality of the product at the time of demand, domestic demands on the product available, money exchange rates, and an ever-changing world market.”
Galvan says the majority of the grower-broker’s exports are “destined for the Far East and South Asian markets followed closely by Latin America.” To maintain year-round supply, Fruit Royale imports from Peru, Chile, Egypt, and Mexico, with the latter accounting for the lion’s share of its incoming shipments. Peru, however, is promising higher volume as new plantings come into production.
Uncertainty in the Future Vallis, whose EG Enterprises has a healthy export business to Japan, Southeast Asia, and Canada, is uncertain about the future. “It depends what happens with U.S. trade policy,” he says, admitting, “we’re on edge about it.”
With a North American Free Trade Agreement (NAFTA) renegotiation looming in the future, many in the industry with strong international ties are uneasy about possible trade policy changes. “The jury is still out as to how, but no doubt it will have an impact on our business,” says Galvan.
Giumarra Vineyards relies heavily on international relationships, particularly with Mexico where the company grows product. Imports surpass exports as the larger part of the supplier’s business. “It all depends on the terms that are negotiated,” explains Corsaro-Dorsey.
Vallis emphasizes that it’s not just NAFTA affecting trade relationships, but other factors as well—including the strength of the dollar. “A stronger dollar [makes it] harder for Mexico and Canada to buy product,” he says, and finds the idea of “raising tariffs from countries that tend be our biggest import partners” unnerving.
The result, Vallis fears, would be bad for both sides. “We export to countries that want our grapes and those countries export products to us—if we start raising trade barriers, what else can they do to retaliate but buy less?”
Competition Among Vineyards
Because no other region actively ships during the California season—with the exception of an overlap of the Coachella Valley and Mexico growing regions— the import market is relatively free of competition. For exports, it’s a different story.
Many of the big players like China, Korea, and Japan grow domestically and can undercut pricing. “So when we export,” comments Corsaro-Dorsey, “those markets have a cheaper option.”
An example is the Red Globe variety; she says China is “growing them better and better,” so California growers are switching to other cultivars “because they can’t compete with the lower prices.” Fortunately, new proprietary varieties still give U.S. growers and shippers an edge in the highly competitive export circuit.
Of course, there’s domestic rivalry too—not only between U.S. grape growers but among other fruits as well. Corsaro-Dorsey acknowledges consumers may substitute other commodities for grapes, but finds the range of proprietary grape varieties gives shoppers plenty of choices. “It’s all about who has best [variety] in each time period.”
Olsen, too, sees rising competition within the industry having an effect on not only which varieties are planted, but how much acreage is devoted to each type.
New Kids on the Block
Giumarra Vineyards Corporation has been growing grapes for over 70 years. The grower recently began replacing acres of Thompson Seedless, Red Flames, and Red Globes with newer proprietary red and black varieties.
“We’re an old company, and had a lot of nonproprietary varieties like Thompsons, which are in the public domain,” explains Mimi Corsaro-Dorsey, Giumarra’s vice president of marketing and director of export sales. The new varieties, she reports, are popular with export markets which account for up to a third of the company’s annual shipments.
Passion Fire, also known as ARRA 29 (bred by ARD LLC, a division of Giumarra), is marketed as a substitute for Flame Seedless and gaining both domestic and international acceptance. Another, the ‘Sweetie,’ or ARRA 15, is a white or ‘buttery’ green seedless variety to replace Thompsons, and is currently in production in Chile and other countries. It has an impressive trait: rain resistance.
Mystic Dream, or ARRA 32, has also caught the eye of growers. The large, black seedless grape ripens very late in the season, making it a great addition to the export market. It is viewed as an improvement on the Autumn Royale variety, tasty but prone to shatter (the loss of its berries).
Many of the newer varieties are designed specifically for export and to fill supply gaps. “There’s more focus on that late window between California and Peru, where there’s a time gap,” explains Corsaro-Dorsey.
Cultivars that can hit the new variety trifecta will go into wider production: “The winners with the better flavor profile, more consumer likes, and better shelf life—all characteristics we look for in breeding programs—are going to emerge,” she notes. The next five years or so will present an interesting shuffle in the table grape industry, to see which varieties stick.
Weather & Labor Hurdles
By most any standard, California’s recent spate of trials and tribulations was remarkable. “Every year presents a fundamentally new challenge,” shares Vallis. In the last year, there was “drought, then a labor shortage, then lots of rain, then even less labor. We don’t get to look back at history to solve [problems], but have to make it up as we go,” he says.Corsaro-Dorsey, too, commented on the “strange weather” from “a rare hot spell, freak rain storms the last two years, then much more rain this year” and how it will affect the upcoming season’s grapes. “It looks like things are going to be a little early compared to last year—and last year was early,” she observes. When it comes to weather’s unpredictability, she says, “We expect the worst and pray for the best, but try to be prepared for anything that hits us.”
Efficiency & Sustainability Matter
Technology continues to transform day-to-day operations, allowing those in the industry to spend more time out of office and less time “tied to a desk,” according to Vallis. “There are new platforms for streamlining sales,” as well as back office functions and better tools to use in the field. “I can manage, harvest, and sell from there.”
Better yet is the impact technology has had on sustainability. Vallis considers it is a philosophical must for California growers. “As costs go up, we need to find new ways to move forward,” he says. He is further heartened that consumers now value green initiatives too.
Galvan’s beliefs fall along the same line. “As farmers, we’re always looking for better, cleaner, and more efficient ways to produce a crop. It is our responsibility to take care of the land that takes care of us.” Fruit Royale has invested in several environmentally-friendly measures including solar power, drip instead of flood irrigation, and clean-air equipment powered by natural gas.
Sustainability has long been a focal point for Delano-based Sunview Marketing International through drip irrigation, solar power, a commitment to recycling, and pest management practices to decrease pesticide use. “Our bedrock ideology is to be good stewards of the land we farm,” says Phil Gruszka in marketing.
For its part, Double D Sales Com-pany, Inc. is installing solar power and is excited about a new ‘ET’ or evapotranspiration system. “It measures exactly what each plant needs, and that’s what we apply every day to keep them happy and in production,” says Daniell. Not only is the method highly sustainable, but “we’re not overspending on water or electricity.”
Efficiency is paramount for Jasmine Vineyards, Inc. The Delano-based grower-shipper recently added 60,000 square feet of cold storage to accommodate increased production. President Jon Zaninovich says the company’s breeding program has exceeded expectations, producing new varieties with better yields and more efficient harvests.
“It’s a natural progression,” Zaninovoch explains. “The older varieties could hang on the vine, we could make a few passes, and they came in a lot slower, but these new varieties roll into the cooler quicker.”
Growing Regions: The Future
The future of California’s table grape industry rests on several factors; perhaps the most interesting are the transformations taking place on the vines. With so much planting and replanting planned for the next few years, Corsaro-Dorsey expects to see some dips in production as new varieties enter the scene.
“Replanting is a two- to three-year process, and over the next five years there will be more,” predicts Corsaro-Dorsey, which will affect output until the newer vines are fully productive. She’s certain there will be a significant drop “in older varieties and bigger spike in proprietary” grapes going forward.
Gruszka is excited about Sunview’s in-house breeding program and the continued “development of new varieties to improve consumers’ eating experience. The process takes significant time and investment, but the investment is well worth it.”
Olsen highlights the industry’s astounding production capacity the past three years. “To move that record speaks volumes,” he states, in not only quality and available varieties, but how well California’s grapes have been received by consumers.
FRESH FORUM What new varieties are you particularly excited about?
Mimi Corsaro-Dorsey, Giumarra Vineyards Corporation
The ARRA varieties like the Passion Fire, Mystic Dream, and Passion Punch.
Louie Galvan, Fruit Royale, Inc.
The Sheehan Genetics varieties are showing great promise!
Jeff Olsen, Chuck Olsen Company
There are so many new ones! We’re really strengthening our category with many different varieties. I don’t even know them all myself—more keep popping up. We’re just putting all our muscle into producing a solid piece of fruit.
Peter Vallis, EG Enterprises
There are a couple we’re excited about because they do taste better. As an industry, we need to focus on making grapes taste good—that’s why people like to eat grapes—and that speaks volumes.
Derrick Daniell, Double D Sales Company, Inc.
A new variety we’re working with is Krissy—an early to mid-season red with great characteristics for export—mainly a round, oval variety with good production and a great flavor profile.
Jon Zaninovich, Jasmine Vineyards
We have one called Summer Crunch, an early white variety; a mid-season white variety called Sweet Globe; and I love a red grape called Sweet Celebration.
Phil Gruszka, Sunview Marketing International
We have three proprietary varieties that have been in the market for a couple of years and have been growing in popularity. Stella Bella is an incredibly sweet, green seedless grape that is elongated and large in size; it’s available from approximately mid-July through mid-October. We are also excited about Gem, a seedless red grape available from mid-August through November, and Rosa, a seedless red grape.
“It’s no longer just Thompson and Flame Seedless; we have different reds and greens appealing to both the eye and the taste buds,” enthuses Olsen. “When you have that combination, product flies off the shelf.” He believes the growth will continue.
For Vallis, the future is not so straight- forward and depends on labor, water, and production costs. With prices continuing to rise, he categorizes table grapes as a luxury crop. “There will be a table grape industry in California, although many factors go into supply and demand, and there’s a lot outside of a farmer’s control,” he says.
Zaninovich believes the industry is at a tipping point. “We will probably reach 130 million in total production if the industry continues to prosper,” he notes. But if economic forces including water costs, labor shortages, and low pricing continue, he believes production could shrink to under 100 million in the same five-year period.
On the flipside, there is still reason to celebrate: “In the last 10 years, the table grape industry has gone through nothing short of a revolution,” Zaninovich insists. Most of the old varieties have been replaced with breeds that “not only increase yields, but deliver stronger grapes with less bruising, shattering, and spoilage”—all of which he sees as spurring growth.
Despite the uncertainties, optimism runs high. “As demand for a fresh nutritional product grows, so will our industry,” asserts Galvan. With so many new varieties to fill in production gaps and tantalize taste buds, along with record production and strong international markets—he believes the industry shows no signs of slowing down.
