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Great Grapes

Complexities, consolidation, and what else is new in California
MS_Grape Guy

For table grape growers, it’s both an exciting and daunting time to be in the industry: consolidation and corporate farming are replacing multigenerational family farms; old vineyards are being replaced with new varieties; and innovations in packaging are producing opportunities and challenges for retailers. What’s more, the holy grail of grape growing—extending the season—is finally becoming a reality as new varieties and growing practices take hold. Read on to stay current with the fast-paced evolution of this extraordinary fruit segment.

New Varieties
For decades, Thompson Seedless and Red Flame were the high-volume varieties consumers came to expect in grocery stores. But with increased imports from Mexico and Chile extending availability, California growers have sought ways to lengthen the domestic season with new varieties that would ship earlier in the spring and later in fall. Additionally, nurseries and root stock suppliers have been looking for varieties with better size and flavor while requiring less labor and fewer resources.

“It takes about three years to determine if a new variety will thrive,” says Mimi Dorsey, vice president of marketing and director of export sales for Giumarra Vineyards Corporation in Bakersfield. Better yet, she notes, “there are now a number of new varieties that have proven themselves around the world, like the Sweeties and Passion Fire.”

Passion Fire is an early red grape, available at the beginning of July, and Sweeties are a popular mid-season grape that are elongated and crunchy. Sugar Drop is an early, very sweet green grape, currently in limited production. All are part of Giumarra’s ARRA breeding program, in operation since the 1990s, which licenses new cultivars for worldwide use.

Though breed, soil, and climate all influence the quality of table grapes, cultural practices are an essential element as well according to Jared Lane, vice president at Grapeman Farms LP,  also in Bakersfield. “Each variety performs differently in different areas, but so much depends on who is doing the cultivating,” Lane says. In his opinion, “What matters is how nutrients and fungicides are applied to vines, along with skillful pruning, leafing, and thinning.”

The plethora of new varieties has raised the bar for consumer satisfaction too. Recent innovators include the well named Cotton Candy grapes, for example, that may not be as cosmetically desirable but are renowned for their aroma and distinctive sweet taste.

Rob Spinelli, sales manager for Anthony Vineyards, Inc. in Bakersfield, comments, “Today there are more choices, especially in the fall. Newer varieties such as Sweet Sapphire, Timco, Jack’s Salute, Sweet Celebration, Autumn Kings, and Allison deliver better size and flavor.” Another change involves storage. “We no longer store during October and November—we harvest and ship fresh.”

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For table grape growers, it’s both an exciting and daunting time to be in the industry: consolidation and corporate farming are replacing multigenerational family farms; old vineyards are being replaced with new varieties; and innovations in packaging are producing opportunities and challenges for retailers. What’s more, the holy grail of grape growing—extending the season—is finally becoming a reality as new varieties and growing practices take hold. Read on to stay current with the fast-paced evolution of this extraordinary fruit segment.

New Varieties
For decades, Thompson Seedless and Red Flame were the high-volume varieties consumers came to expect in grocery stores. But with increased imports from Mexico and Chile extending availability, California growers have sought ways to lengthen the domestic season with new varieties that would ship earlier in the spring and later in fall. Additionally, nurseries and root stock suppliers have been looking for varieties with better size and flavor while requiring less labor and fewer resources.

“It takes about three years to determine if a new variety will thrive,” says Mimi Dorsey, vice president of marketing and director of export sales for Giumarra Vineyards Corporation in Bakersfield. Better yet, she notes, “there are now a number of new varieties that have proven themselves around the world, like the Sweeties and Passion Fire.”

Passion Fire is an early red grape, available at the beginning of July, and Sweeties are a popular mid-season grape that are elongated and crunchy. Sugar Drop is an early, very sweet green grape, currently in limited production. All are part of Giumarra’s ARRA breeding program, in operation since the 1990s, which licenses new cultivars for worldwide use.

Though breed, soil, and climate all influence the quality of table grapes, cultural practices are an essential element as well according to Jared Lane, vice president at Grapeman Farms LP,  also in Bakersfield. “Each variety performs differently in different areas, but so much depends on who is doing the cultivating,” Lane says. In his opinion, “What matters is how nutrients and fungicides are applied to vines, along with skillful pruning, leafing, and thinning.”

The plethora of new varieties has raised the bar for consumer satisfaction too. Recent innovators include the well named Cotton Candy grapes, for example, that may not be as cosmetically desirable but are renowned for their aroma and distinctive sweet taste.

Rob Spinelli, sales manager for Anthony Vineyards, Inc. in Bakersfield, comments, “Today there are more choices, especially in the fall. Newer varieties such as Sweet Sapphire, Timco, Jack’s Salute, Sweet Celebration, Autumn Kings, and Allison deliver better size and flavor.” Another change involves storage. “We no longer store during October and November—we harvest and ship fresh.”

With fresher, more appealing grapes later in the season, shoppers are enjoying more access and a better eating experience. The result is increased consumption, particularly around holidays. “There are a lot of marketing opportunities for California grapes during our season—Memorial Day, July Fourth, Labor Day, Halloween, Thanksgiving, and Christmas.”

Exports & Destinations
The California Table Grape Commission reported that in 2017 growers produced 109.1 million boxes at a crop value of $1.81 billion. This was down only slightly from 2016, which saw 110 million boxes produced at a value of $1.85 billion. “Had it not been for the excessive heat, then heavy rain in the Central Valley last summer, production might have been higher,” says Lane. He also cites vine fatigue as a likely culprit as well. He believes the 2018 season should be a good one, with harvests beginning by July.

Kathleen Nave, president of the Commission notes nearly two-thirds of California’s production is sold and consumed in the United States, with 35.8 percent going to export markets. “California table grapes are regularly shipped to 59 countries worldwide, with the top volume markets being Canada, Mexico, mainland China, the Philippines, Taiwan, and Japan.”

Dorsey clarifies, “Because grapes are trucked to Canada and Mexico, many growers and shippers count those markets as domestic. China is the largest grape producer in the world; with its lower pricing and increased number of licensing agreements, it will become a formidable competitor in the Asian market.”

As of last spring, international trade, especially with China, has been under the threat of retaliatory tariffs. The timing comes as China’s industry is expanding. “China has five times the production of California and is displacing us in some Asian markets,” points out George Radanovich, president of the California Fresh Fruit Association in Fresno. China, he states, “is our main competitor for exports.”

Jon Zaninovich, president of Jasmine Vineyards, Inc. in Delano, agrees. “The Chinese table grape industry is experiencing a lot of growth. As the result of improved quality and cheaper pricing, we’ve seen a reduction of business into China,” he admits, but adds, “there’s still a perception in Asia that California product is safer.”

Speaking of Imports
To keep up with demand, table grapes are imported when California grapes are unavailable, roughly January through April, so the majority of imports don’t compete. The most consistent sources for off-season grapes are Chile, Mexico, and Peru.

Early in the season the Coachella Valley’s main competitor is Mexico, but from July through December, the Central Valley has no competition. “Chile only interferes in the first part of May when its season is ending and in late November/early December as it is beginning,” explains Jeff Olsen, president of Chuck Olsen Company, Inc. in Visalia. “At the end of the Chilean season in May, our fruit has the advantage because theirs has been in transit at least three weeks. On the other end in December, the first Chilean Flames are small and don’t have a lot of sugar.”

Steve Monroe, vice president at Monroe & Sons Produce Distributors in Bakersfield, has his own spin: “It’s a matter of marketing windows; we get going at the end of June and Mexican product is early—over 20 million packages in May and June. Our season starts in Nogales around May 10 with Mexican product. By the end of the California season, our imports are from Chile. Brazil also comes in at the end of season, as early as Thanksgiving. As far as export competition, South America is not a factor in Asia. At the end of July, we start exporting to Asia through our associations with other export companies.”

Winds (and Rains) of Change
California’s industry has been in flux the last few years. Growers are moving forward with new varieties that offer better flavor and yield, though the transition takes a few years before new vines start producing. As multigenerational farms struggle with California’s labor shortage, water restrictions, increasing minimum wage, and new overtime rules, a wave of consolidation is taking hold.

“Some growers are developing their land, while others are selling vineyards to investors in commodities such as almonds,” comments Zaninovich. “Then there are farmers who themselves are expanding into new commodities like tree nuts and citrus, which aren’t as labor intensive as grapes. Looking ahead five to seven years,” he adds, “I suspect families will stay in the table grape business longer than investment groups.”

Lane concurs, observing, “Some growers are switching to nuts, as they’re a third of the cost per acre to grow and harvest. You need an army of people to harvest grapes.”

Smaller, family-owned farms are also being bought out by large, investment-oriented firms. “In the past 20 years,” Monroe notes, “the consolidation you saw in retail is now happening on the supply end. These changes are coming about because it’s harder to turn a profit. Farms are growing more tonnage per acre as cheaply as possible, yet they need to make expensive investments like having to replant to keep up with new varieties.”

While it is true total acreage declined slightly in 2016 and yields were up incrementally, this was probably due to newer varieties that are more productive per acre. Last year was marked by challenging conditions, including above-average rainfall in the winter, followed by three weeks of temperatures over 105 degrees, then unseasonal rain every month during the summer. It all wreaked havoc, causing mildew and rot. “Many growers in the San Joaquin Valley lost some production,” Spinelli confirms. “There was enough product overall, but it affected individual farms.”

“The 2017 harvest was one of the weirdest I’ve ever seen,” Zaninovich shares. “There was a late start and the sugars weren’t right.” He also cautions that rain during new growth can lead to fungal problems, and rain during harvest can damage the crop. “The jury is out for 2018—we’re hoping things will be normal.”

Looking Ahead
For California table grapes, the future is in new cultivars that are just now becoming established. Through patience, trial, and error, growers are moving forward with table grapes that are supposed to extend the domestic season and deliver consumer satisfaction. “There are about 30 to 50 experimental varieties in production, where there used to be five to seven,” points out Lane. “This will be a learning curve for the industry to find the best varieties for both production and consumption.”

Olsen believes the future may be more influenced by practices than varieties. “Practices such as packing in the field, fertilizing through irrigation rather than spraying, reducing emissions, and utilizing solar power will become bigger factors,” he says, adding that today’s consumers are much more environmentally aware and will “demand these techniques.”

Some growers, notes Radanovich, are experimenting with protected agriculture. “The benefits go beyond sheltering from extreme elements, serving as a method to conserve water and provide microclimates for optimum development.”

And despite the oft-discussed trend toward consolidation, even modest family-run growers can make their way forward by staying on top of innovations and carefully cultivating their niche. “We’re secure because of our service-oriented approach,” contends Olsen. “In the case of a perishable commodity, that goes a long way toward ensuring our survival.”

Last but not least, Monroe offers his thoughts: “The future resides with varieties that produce a heavier crop with bigger berry size and are less labor intensive. To keep farmers in the business, people will have to get used to spending more money for grapes.”

Image: Nomar_Soul/Shutterstock.com

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