California Winegrape Growers Assn. Market Outlook on Winegrapes Spot Prices Soften The spot market for uncontracted winegrapes has fallen under the weight of increasing supply, particularly in California s Central Valley. Hardest hit are the so-called white generics, followed by white varietals. It has been a very challenging year, said Nat DiBuduo of Allied Grape Growers.
Prices are at an all-time low and the costs of production are higher than they ve ever been.
There s a chance that not all the grapes are going to be harvested. It will depend on timing, capacity and willingness of wineries to go out of their comfort zone. We are approaching price levels that don t compensate the grower for picking and hauling, Barry Bedwell of the Ciatti Grape Brokerage observed . The lesson for growers is, do not plant without a contract. He estimated that 90 to 95 percent of winegrapes on the north coast are grown under contract, but that number drops to 75 to 80 percent in the San Joaquin Valley.