No-tillage Grows in California

The list of crops that have been successfully grown using no-tillage in California continues to increase with garbanzo beans being the latest addition, according to Jeffrey P. Mitchell, CE cropping systems specialist, University of California, Division of Agriculture and Natural Resources.

Harvest data from the Conservation Tillage Workgroup are now in for a 2015 garbanzo crop that was no-till seeded in January in the longstanding conservation agriculture systems study field in Five Points, CA, and these data indicate no difference in yield between the no-till with and without cover crop treatments and the standard till with and without cover crop systems. Garbanzo yields for the four systems averaged about 3,600 lbs / acre with no statistical differences seen between the four experimental treatments.

Other than an herbicide spraying in the fall of 2014 to knock down weeds, the no-tillage systems relied on zero tillage prior to seeding that was done with a John Deere 1730 6-row 30” planter. Conventional tillage consisting of several passes of a Wilcox Performer bed-shaping tillage implement was done to prepare planting beds in the standard tillage plots as would be commonly done in the region.

There is now a growing list of several crops, including processing tomatoes, cotton and dairy forage that have been successfully produced, both in research studies and on California farms, with economically viable yields using no-tillage seeding.

Additional information about this study is available at the Conservation Agriculture Systems Innovation Center (CASI) website and by contacting Jeff Mitchell at jpmitchell@ucdavis.edu.

Established in 1998, the Conservation Cropping Systems Workgroup is a diverse group of more than 1,500 farmer, University of California, California State University, USDA – NRCS, Resource Conservation District, public agency, private sector and environmental group members that have come together to promote conservation cropping systems in California.

Featured Photo Soure: Source: CASI (Conservation Agriculture Systems Innovation) Center, University of California, Division of Agriculture and Natural Resources

2016-05-31T19:28:05-07:00September 2nd, 2015|

Super PAC Needed to Save Forests, Wildlife, Ag, Part 1

Rachel Martin on Need for Super PAC to Save Forests, Wildlife, Ag

By Charmayne Hefley, Associate Editor

Part 1:

This is part one of a three-part series with Rachel Martin, the national chairperson of Homeland Security for the National Federation of Republican Women (NFRW), on the importance of creating a political action committee (super PAC) to save forests, wildlife, and ag suffering from limited water allocations during this extensive drought.

Martin said a super PAC must be created to combat the environmentalists who have been lobbying in Washington and Sacramento for years and to improve conditions for all constituencies. The resulting environmental regulations have prevented forest maintenance, such as logging, thinning of the forests, and controlled burns, which has increased the likelihood and severity of wildfires that burn thousands of acres each year and kill the animals environmentalists are trying to protect.

“I’ve been working with public safety as well as a lot of animal activists since ’99,” Martin said, “and I know that with ag, it’s been a fight for the last 30-plus years with the environmentalists and the Environmental Protection Act. Ag alone is not the only affected group of agencies or businesses. People don’t often think about how the lack of water significantly affects California Department of Forestry and Fire Protection (CAL FIRE), the U.S. Forest Service, and law enforcement agencies as well. We need to come together.”

“Law enforcement agencies and the U.S. Forest Service have told me the environmentalists are actually hurting and killing a lot of the creatures they stand to protect,” Martin said. “Other animals die during those fires, and they’re dying the most horrible deaths—which is death by fire.”

2016-05-31T19:28:06-07:00August 31st, 2015|

2014 Fresno County Crop Report Sets Record Production

2014 Fresno County Crop Report Sets Record Production — $7 billion+

Les Wright, Agricultural Commissioner/Sealer submitted the following information to Karen Ross, California Department of Food and Agriculture Secretary, TODAY accompanied by the 2014 Fresno County Crop Report showing record production.

It is my pleasure to submit the 2014 Fresno County Agricultural Crop and Livestock Report. This report is produced in accordance with Sections 2272 and 2279 of the California Food and Agriculture Code, and summarizes the acreage, production, and value of Fresno County’s agricultural products. The figures contained herein represent gross returns to the producer, and do not reflect actual net profit.

Jacobson, Wright and Matoian

Photo, from left, Ryan Jacobson, Fresno County Farm Bureau CEO, Les Wright, Fresno County Ag Commissioner and Richard Matoian, American Pistachio Growers Executive Director

This report is a testament to the resiliency and determination of the Fresno County agricultural industry. For the first time ever, the gross value of Fresno County agriculture exceeds seven billion dollars. Almonds remain the number one crop at a value of 1.3 billion dollars with grapes a close second at $905 million.

The total gross production value of Fresno County agricultural commodities in 2014 was $ 7,039,861,000, a 9.26 percent increase from the 2013 production value of $6,443,236,500.

Increases were seen in:

  • vegetable crops (0.47% = $5,599,000)
  • fruit and nut crops (13.16%= $422,664,000)
  • nursery products (46.89%= $20,022,000)
  • livestock and poultry (31.48% = $301,144,000)
  • livestock and poultry products (22.09% = $116,299,000
  • apiary (17.39% = $10,738,000)
  • industrial crops (107.05% = $3,795,500).

Decreases in:

  • field crops (-36.20%= -$149,822,000)
  • seed crops (-14.67%= -$5,823,000).

I would like to express my appreciation to the many producers, processors, and agencies, both private and public, who supported our efforts in producing this report. I would also like to thank all my staff, especially Fred Rinder, Scotti Walker, Angel Gibson, Vera Scott-Slater, and Billy Hopper. Without their hard work and valuable input this report would not be possible.

Pistachios, featured on the cover of the 2014 Fresno County Crop Report, were Fresno County’s seventh top crop last year, with a value of nearly $380 million dollars.

The top nut—and crop, for that matter—was almonds, followed by grapes, poultry, milk, cattle and calves, tomatoes, pistachios, garlic, peaches and cotton.

Also included in the report was this quote from President John F. Kennedy:

Our farmers deserve praise, not condemnation; and their efficiency should be cause for gratitude, not something for which they are penalized.

2016-05-31T19:28:06-07:00August 25th, 2015|

Trinity Reservoir Releases Water

U.S. Bureau of Reclamation Releases Shared Water From Trinity Reservoir Despite Making Claims Of “California’s Historic Drought”

The San Luis & Delta-Mendota Water Authority (Authority) along with Westlands Water District, according to their press release, has filed a lawsuit in federal court to stop the Bureau of Reclamation (Reclamation) from releasing Central Valley Project (CVP) water from the Trinity Division to the Klamath River.
The U.S. Bureau of Reclamation said releases started Friday from Lewiston Dam on the Trinity River, the Klamath’s primary tributary, and would continue into late September.SLDMWA logo
Yesterday, Reclamation announced the release of up to 88,000 acre-feet of CVP water from Trinity Reservoir in the hope of aiding returning non-listed Chinook salmon with the optimism of diminishing the effect of a naturally-occurring disease endemic known as “Ich” (pronounced “ick”) to the Klamath River system to which the Trinity River is connected. This action, which is outside of Reclamation’s authorized place of use, is a repeat of a similar action taken last year with the intention to help avoid an outbreak which has only been documented to have occurred once in 2002. Since 2000, a significant supply of water has been set aside each year from the Trinity Reservoir for fishery protection purposes. Specifically, over the past four years, this has equated to more than 200,000 acre-feet of water lost that was literally flushed down the Lower Klamath River.
“As our state is faced with a water supply crisis affecting every sector of people, businesses, and communities, an action like this is unthinkable. This will cause irreparable damage to drought-stricken communities already facing water restrictions,” said Dan Nelson, executive director of the San Luis & Delta-Mendota Water Authority.
The CVP and State Water Project (SWP) provide water for more than 25 million Californians who depend upon a reliable water supply. In the 50-year history of the Projects, water deliveries have never been lower–the CVP is experiencing its second year of a zero water allocation and the SWP sits at a mere 20 percent water allocation.
Reclamation is once again choosing to ignore the harms of its actions through the issuance of a “Finding of No Significant Environmental Impact” (FONSI) that hasn’t been properly analyzed. Further, Reclamation’s decision to release 88,000 acre-feet of CVP water for the Klamath River is a sad irony given that Reclamation is currently unable to meet its legally-mandated obligations within the CVP and SWP.
 Westlands Water District_logo
“The hardworking people of the State of California have been directed by state and federal agencies to conserve water in the form of dying lawns, fewer showers, unplanted fields, trees uprooted or turning brown, and community wells drying up. Yet Reclamation, which has been unable to deliver any water to farmers, has decided to release tens of thousands of acre feet in an arbitrary manner that the courts have previously held to be unlawful.” said Tom Birmingham, general manager of the Westlands Water District. “The fact that 88,000 acre-feet can be casually released without regard to the potential impacts on the environment, including at risk-species in the Sacramento River and the Delta, is a gross mismanagement of the state’s water supplies. The action filed today is intended to compel Reclamation to comply with its mandatory duties,” said Birmingham.
“During a time when we are experiencing the worst water management challenges in decades, when communities and agriculture throughout the state are suffering severe impacts that have negatively affected our economy, the labor force and the environment, the decision by the Bureau of Reclamation to repurpose precious Central Valley Project water resources to augment Klamath flows for non-endangered fish, an action that is of questionable benefit, is both irresponsible and incomprehensible. While the needs of cities, family farms, and endangered species that rely on CVP resources continue to go unmet, the reallocation of the Project’s limited supply of water defies all logic,” said Jeff Sutton, general manager of the Tehama-Colusa Canal Authority, an organization that represents seventeen Sacramento Valley water districts that hold CVP water service contracts, that are also highly critical of the action being undertaken by the Bureau of Reclamation.
The water planned for release is enough to farm 31,000 acres of food, or to serve the domestic needs of more than 175,000 families for an entire year. The devastating effects of the drought will be felt for decades to come especially if arbitrary decisions like these continue.
2016-05-31T19:28:06-07:00August 21st, 2015|

Gladwin’s Final Year As A Farmer

Tonetta Simone Gladwin on Final Year as a Farmer

As the fourth-year drought continues, some farmers have conceded to the elements and the limited water allocations and have made the decision to make their final year in the farming business. Tonetta Simone Gladwin, the third generation owner of Passion Fruit Farms, a fig operation in Merced, Calif., said this year would be her last.

“As a third generation, I’m the last generation in my family. We’ve all farmed figs,” Gladwin said. “I don’t think Grandpa had any idea of the challenges we have to face today. Never did he think we’d have $10 per hour in labor wages, no water deliveries and some of the regulations we’ve had to face and overcome. These challenges are so different from those in his day.”

 

Passion Fruit Farms FBPassion Fruit Farms

2016-05-31T19:28:06-07:00August 18th, 2015|

2015 Drought Costs Ag Nearly Two Billion!

DROUGHT COSTS CALIFORNIA AGRICULTURE $1.84B AND 10,100 JOBS IN 2015

The drought is tightening its grip on California agriculture, squeezing about 30 percent more workers and cropland out of production than in 2014, according to the latest drought impact report by the UC Davis Center for Watershed Sciences.

In 2015, the drought costs to the state’s agricultural economy will reach about $1.84 billion and 10,100 seasonal jobs, the report estimated, with the Central Valley hardest hit.

The analysis also forecasts how the industry will fare if the drought persists through 2017.

‘NOT A FREE LUNCH’

Currently, the industry overall remains robust. The agricultural economy continues to grow in this fourth year of severe drought, thanks mostly to the state’s vast but declining reserves of groundwater, which will offset about 70 percent of the surface water shortage this year, the researchers said.

California is the world’s richest food-producing region. Continued strong global demand and prices for many of its fruits, nuts and vegetables has helped sustain the farm economy along with intrastate water transfers and shifts in growing locations.

“We’re getting by remarkably well this year — much better than many had predicted — but it’s not a free lunch,” said lead author Richard Howitt, a UC Davis professor emeritus of agricultural and resource economics.

The heavy reliance on groundwater comes at ever-increasing energy costs as farmers pump deeper and drill more wells. Some of the heavy pumping is in basins already in severe overdraft — where groundwater use greatly exceeds replenishment of aquifers — inviting further land subsidence, water quality problems and diminishing reserves needed for future droughts.

Further, several small rural communities continue to suffer from high unemployment and drying up of domestic wells because of the drought, particularly in the Tulare Basin.

“If a drought of this intensity persists beyond 2015, California’s agricultural production and employment will continue to erode,” said co-author Josue Medellin-Azuara, a water economist with the UC Davis Center for Watershed Sciences.

MAJOR CONCLUSIONS

The UC Davis team used computer models and the latest estimates of surface water availability from state and federal water projects and local water districts. They forecast several drought-related impacts in the state’s major agricultural regions for the current growing season, including:

  • The direct costs of drought to agriculture will be $1.84 billion for 2015. The total impact to all economic sectors is an estimated $2.74 billion, compared with $2.2 billion in 2014. The state’s farmers and ranchers currently receive more than $46 billion annually in gross revenues, a small fraction of California’s $1.9 trillion-a-year economy.
  • The loss of about 10,100 seasonal jobs directly related to farm production, compared with the researchers’ 2014 drought estimate of 7,500 jobs. When considering the spillover effects of the farm losses on all other economic sectors, the employment impact of the 2015 drought more than doubles to 21,000 lost jobs.
  • Surface water shortages will reach nearly 8.7 million acre-feet, which will be offset mostly by increased groundwater pumping of 6 million acre-feet.
  • Net water shortages of 2.7 million acre-feet will cause roughly 542,000 acres to be idled — 114,000 more acres than the researchers’ 2014 drought estimate. Most idled land is in the Tulare Basin.

The effects of continued drought through 2017 (assuming continued 2014 water supplies) will likely be 6 percent worse than in 2015, with the net water shortage increasing to 2.9 million acre-feet a year. Gradual decline in groundwater pumping capacity and water elevations will add to the incremental costs of a prolonged drought.

GROUNDWATER LAWS COULD HELP

The scientists noted that new state groundwater laws requiring local agencies to attain sustainable yields could eventually reverse the depletion of underground reserves.

“The transition will cause some increased fallowing of cropland or longer crop rotations but will help preserve California’s ability to support more profitable permanent and vegetable crops during drought,” said co-author Jay Lund, director of the UC Davis Center for Watershed Sciences.

The report was primarily funded by the California Department of Food and Agriculture.

Other authors on the report include Daniel Sumner, a UC Davis professor of agricultural and resource economics and director of the UC Agricultural Issues Center, and Duncan MacEwan of the ERA Economics consulting firm in Davis.

2016-05-31T19:28:07-07:00August 18th, 2015|

Big Water Rally at Grizzlies Stadium Aug. 21

Water Rally August 21 to Fill Grizzlies Stadium for #moreDAMstorage

Valley Ag Retailer gives away thousands of complimentary tickets in effort to promote #moreDAMstorage as a long-term solution to California’s water woes.

Gar Tootelian, Inc. (GAR) has invited Central Valley growers and businesses to rally around the backdrop of a Fresno Grizzlies Game on Friday, August 21, 2015 in support of #moreDAM storage.

“California’s Central Valley depends on reliable, clean water to survive and thrive. The rally’s goal is to fill the stands with those who support #moreDAMstorage as a solution to California’s water woes” said Greg Musson, president of Gar Tootelian, Inc. “For too long now, Sacramento has delivered nothing but lip service to valley water needs. It is time for the people of this valley to rise up and be heard.”

The Rally is an opportunity to learn more about the organizations working together on California’s long term water storage solutions. The Rally and fireworks will be highlights of the Fresno Grizzlies game on Friday, August 21, 2015 at Chukchansi Park, Downtown Fresno. Gates open at 6:05 pm. The game start time is 7:05 pm. GAR is giving away thousands of complimentary tickets which are limited and will be available on a first come first serve basis. You may pick up your tickets at the GAR booth located on the corner of Inyo and “H” Street the night of the game beginning at 5:00 pm.

“GAR takes great pride in supporting long term water storage solutions for the health and sustainability of our Valley,” said Musson, “I personally look forward to welcoming you to the Central Valley Water Rally at Fresno Grizzlies Stadium!”

GAR is committed to supporting long term water storage solutions for California’s greater tomorrow. The company provides water, nutrition, regulatory and crop care advice and products to more than 1,500 growers throughout the Central Valley.

 

2016-05-31T19:28:07-07:00August 14th, 2015|

Senate Water Bill Hopeful

Senate Water Bill Introduction is a Glimmer of Hope for Water Agencies

FRESNO, CA – Last week’s introduction of Senator Dianne Feinstein’s legislation, the California Emergency Drought Relief Act of 2015, is welcome news for the people of the State of California and the Central Valley enduring another devastatingly dry year. Once again, multiple Central Valley water agencies joined together to express their unified voice in support of an expeditious passage of this Senate water bill. This bill comes on the heels of the introduction and passage by the House of Representatives of H.R. 2898, the Western Water and American Food Security Act of 2015.

 “We are encouraged by Senator Feinstein’s actions with the introduction of this legislation. There is no time to lose as the damaging effects of the drought continue to wreak havoc on local communities, businesses, farms and farmworkers in the San Joaquin Valley and other regions of the State. Immediate solutions are needed, and the District looks forward to working with Members of both the House and Senate to find a reasonable solution that will benefit our great State.”

–Don Peracchi, Chairman of the Board, Westlands Water District

 

“The South Valley Water Association thanks Senator Feinstein for introducing the California Emergency Drought Relief Act of 2015 and encourages the balance of the Senate to make quick work in passing the bill immediately upon return from the August recess. This is a further important step to get legislation that will help those many farms and communities in California who are going without water. We look forward to the members of Congress resolving key differences between the California Emergency Drought Relief Act and H.R. 2898, the Western Water and American Food Security Act of 2015, and finding real water supply solutions. The members of the South Valley Water Association stand ready to assist in any way we can.”

–Dan Vink, Executive Director, South Valley Water Association

 

“The San Joaquin River Exchange Contractors Water Authority thanks Senator Feinstein for the introduction of the California Emergency Drought Relief Act of 2015. We realize this is another important step to passing a bill out of the Senate later this year that provides a meaningful legislative solution to the long-standing water supply shortages that is crippling the state. We are optimistic that members of Congress and the Senate can resolve the key differences in this bill, and the previously passed House Bill H.R. 2898, the Western Water and American Food Security Act of 2015. The Authority looks forward to working with our legislative leaders to pass legislation that benefits all of California.”

–Steve Chedester, Executive Director, San Joaquin River Exchange Contractors Water Authority

 

“There is no more important issue facing the Valley than the drought. It is a statewide crisis with the most direct and severe impacts in the Valley. The Kern County Water Agency appreciates Senator Feinstein’s and Senator Boxer’s efforts to help reduce the drought’s terrible impacts by introducing a bill in the Senate that can improve water supplies for farms and cities. We are anxious for the House and Senate to start working on a compromise between Congressman Valadao’s bill and the bill in the Senate, and we encourage the Senate to take swift action on the Feinstein/Boxer bill so that process can begin.”

–Ted R. Page, Board President, Kern County Water Agency

 

“No area of the State, and perhaps the nation, has suffered more disproportionately the harmful stress of chronic water supply shortages. The San Luis & Delta-Mendota Water Authority is appreciative of the effort of Senators Feinstein and Boxer on the recently introduced California Emergency Drought Relief Act of 2015 bill in the Senate. This bill is not only important to the San Joaquin Valley, but it is also vital for the entire state of California. We encourage the Senate to act swiftly, and encourage both the House and Senate legislators to begin work immediately on a meaningful compromise bill to ensure that long-awaited and much-needed relief is realized.”

–Dan Nelson, Executive Director, San Luis & Delta-Mendota Water Authority

 

 “Friant Water Authority welcomes the introduction of Senate Bill 1894, the California Emergency Drought Relief Act of 2015, and we thank Senator Feinstein and her staff for all their efforts in bringing this bill forward. The immediate task is to pass Senate legislation so that work can begin to craft a compromise with the House-passed legislation. Our farms and communities have suffered more under these water cutbacks than any other area in the nation. Our people are desperate for solutions that will provide real water for our area. This bill is a critically important step in the process of developing compromise legislation that can be signed into law by the President this year. As the bill advances, Friant looks forward to working with our representatives on both sides of the aisle to achieve drought legislation that will provide real relief for the 2016 water year and beyond.”

–Eric Borba, Chair, Friant Water Authority

2016-05-31T19:28:08-07:00August 6th, 2015|

Subsurface Drip in Alfalfa

Subsurface Drip in Alfalfa–A Growing Interest

By Laurie Greene, Editor

Dan Putnam is a faculty member and Cooperative Extension specialist at UC Davis with a statewide responsibility for alfalfa and forage crops. He said there has been an increased interest in subsurface drip irrigation in alfalfa, which is usually flood-irrigated. Alfalfa is a key forage source for the state’s top agricultural product, dairy, to the tune of more than $7 billion per year.

“It does come with some challenges,” but he said, “the growers who have really treated this as an educational experience are continually learning how to manage this system; not only the gophers, but the irrigation management component as well. To establish a crop with drip irrigation, growers need to plant in early fall and use sprinklers to germinate the seeds. A lot of growers fail on agronomic issues, like not planting at the right time of year rather than on drip irrigation issues,” Putnam said.

Putnam noted that growers are more interested in learning about subsurface drip irrigation because of increased yields. “I think over time, we are going to see a greater adaptation of this technology in California,” Putnam explained, “particularly in areas that have very high yield potential. For example, in the San Joaquin Valley and the Imperial low desert areas where the crop is actually capable of 12-16 ton yields, our yields average about 7-8 tons per acre. And so,” he added, “we do have a yield potential that we are unable to achieve, and part of that is in the limitation of surface irrigation.”

Putnam also noted one advantage of drip irrigation is efficient nutrient delivery, which in turn fosters increased uniformity across the system. “Growers can ‘spoon-feed’ the crop rather than inefficiently apply it on the surface,” stated Putnam. “I think a lot of growers have figured this out, although alfalfa does not have a nitrogen issue. Nevertheless, we have to apply significant phosphorous, potassium and several other nutrients in some deficient soils.”

As with most things, there are drawbacks, and Putnam outlined two. “One is an increased cost of the drip line and filtration system,” Putnam said. “Growers who are considering subsurface drip need to wrestle with the cost to be sure they can increase yields enough to justify the cost. In most cases, growers have been able to substantially increase yields in their systems to pay for the $1500-2500 per acre upfront investment in the technology,” he said.

“The other drawback is maintenance,” Putnam continued, “particularly with regard to rodent infestations. We’ve seen gophers, in particular, ground squirrels and meadow voles absolutely devastate drip-irrigation fields. As our vertebrate pest specialist at UC Davis says, ‘It is essentially an ideal habitat for gophers as they have plenty of food, plenty of shelter, plenty of water, and they are able to reproduce pretty readily.’ ”

“You should consider this system only if you are willing to accept a very high level of maintenance and no tolerance for rodent infestation because, if left unchecked, they will chew on the tapes and ruin the system,” he said.

Putnam reported there are strategies to get around gophers and other rodent issues, “You have start clean and do some deep tillage. We also recommend  retaining the capability of flood irrigation in those fields to use once in a while because it reaches the furrows very effectively,” he noted.

For those gophers, Putnam recommends every trick in the book. “There are traps organic farmers are able to use, flood irrigation, and boxes to help control the population,” Putnam said. “There are products available for baiting and other types of control measures that should be used. It is really too expensive a system to allow the gophers to have their way with it, so we need to have a high level of management,” he concluded.

2016-07-30T21:43:15-07:00August 3rd, 2015|

California expects more competition for wine market

Source: Steve Adler; Ag Alert

A new report showing that the United States continues to lead the world in wine consumption is viewed as good news for the California wine sector—but it shouldn’t lead to complacency, according to three experts.

This country’s No. 1 ranking in total consumption in 2013 marked the third consecutive year of that achievement. U.S. wine consumption topped 3.3 billion liters, an increase of 5.4 percent compared to the previous year. France retained its hold on second place, with 2.8 billion liters—but that represented a 6.9 percent decrease in consumption.

California’s share of U.S. wine production is about 90 percent, although there are wineries in every state.

“Our consumption is growing in this country, but everyone realizes that the U.S. is the largest wine market in the world because we have such a large population base. Everybody in the world wants to sell their wines here, so there is a lot of foreign competition,” said Gladys Horiuchi of the Wine Institute in San Francisco.

Mendocino County grape grower and winery owner Bill Pauli said last week’s report on wine consumption underscores the importance of the U.S. market not only to California producers, but to producers around the world.

“With America’s expanding growth and improved economic times, consumption has improved and people are drinking better wines. But we still have to compete, not only amongst ourselves, but with all of the foreign competition. And that foreign competition is really the challenge in not only flavors, but price,” Pauli said.

The challenge comes not only in finished products, but from the foreign producers who sell bulk wines into California to be blended or bottled here, competing directly with California grape growers, he said.

Horiuchi said lighter crops produced in California prior to 2012 allowed foreign producers of bulk wines to make inroads. But because of the large crops in 2012 and 2013, the availability of California grapes has eased that threat, she said.

“The good news now is that the wineries are brimming with California wine of excellent vintages, so naturally the wineries have gone back to their local sources. But in order to maintain their shelf space, when the production in California is down, they will import wine from other countries,” Horiuchi said.

Competition from foreign producers was also noted by Glenn Proctor of the Ciatti Co. in San Rafael, who cautioned the state’s growers and wineries not to become complacent.

“When you are No. 1 in the world, it is not just California wines and U.S. wines that consumers are buying, but other countries are trying to get their wines into the U.S. market too,” he said. “So I think we will continue to see a very competitive environment.”

Proctor said it is important for California wineries to continue producing wines that U.S. consumers want, at prices that allow them to purchase more.

“We have to be on our game and remain competitive. The opportunities continue to grow, but we have to be ahead; we cannot be behind,” he said. “We’ve seen countries like Australia, Chile, Argentina and South Africa do a pretty good job of bringing bottled product into this country.”

While this year’s winegrape crop in California is projected to be normal in size, it follows two years of record production, resulting in large inventories in most of the state’s wineries. Proctor said that will allow California wineries to hold onto highly competitive shelf space.

“We have had two bumper crops in a row and this year looks to be a healthy crop, but not large per se. But we do have some excess of wine, especially in the Central Valley. I think we will work through the excess, and it is helpful that we don’t have a big crop this year. But we do need to increase our sales and grow. Any kind of stagnation in case-good sales would not be a good thing for the industry,” he said.

Proctor predicted that in the near term, there could be some “corrections” in prices that wineries pay to growers.

“Prices received by growers are healthy right now and some wineries may think they are too high,” he said. “We may see some correction in the marketplace in the Central Valley in the next year or two, to get inventory costs back in line.”

In the long term, he said, wineries will need a steady supply of grapes coming from California, “and you want to have new and efficient vineyards so growers and wineries can continue to be profitable.”

Proctor said some older and less-productive vineyards in the Central Valley will probably be removed and replanted, either with better-producing grape varieties or other commodities such as almonds or pistachios.

On the marketing side, Horiuchi said wineries continue to target baby boomers, people ages 50 to 68.

“The baby boomers are the ones who have the income and the ones who are dining in restaurants. But at the same time, there is a transition taking place as wineries are starting to market to the next generation, where the consumers are more involved with social media, taking pictures of wine labels and so on. They are willing to try a lot of different things,” she said.

 

2016-05-31T19:33:25-07:00September 18th, 2014|
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