2014 NATURAL SEEDLESS RAISIN FIELD PRICE INCREASE

By: Laurie Greene; CalAgToday reporter

The Raisin Bargaining Association (RBA) Board of Directors has announced the 2014 Natural Seedless Raisin field price has been established at $0.8875 per pound ($1,775 per ton), representing a $0.0625 per pound ($125 per ton) increase over last year’s price.

The RBA reached agreement with all twelve of its signatory packers:

American Raisin Packers
Boghosian Raisin Packing Company
Caruthers Raisin Packing Company
Central California Packing Company
Chooljian Brothers Packing Company
Del Rey Packing Company
Fresno Cooperative Raisin Growers
Lion Raisins
National Raisin Company
Sun-Maid Growers of California
Sun Valley Raisins
Victor Packing Company

The price will be based on the following formula:

Base price	$1,582.00	$0.7910
Moisture @ 10%	80.00	.0400
Maturity @ 75%	50.00	.0250
Container rental	21.00	.0105
Transportation (minimum)	15.00	.0075
RAC assessment	14.00	.0070
USDA inspection	13.00	.0065
2014 Announced RBA field price	$1,775.00	$ .8875 per pound

According to a statement released by Glen Goto, RBA chief executive officer, the MOU calls for growers to be paid in three (3) installments, as they were last year, with an initial payment of 65% due 15 days after completion of delivery or the release of delivered tonnage from Memorandum Storage. The second payment of 20% will be due on or before February 28, 2015, and the final payment of 15% will be due on or before April 30, 2015. Packers may choose to pay all their RBA growers in fewer payments with a shorter schedule.

Individual grower yields this season are significantly lower than the previous season. Today, there is general agreement in the industry that this year’s crop of Natural Seedless raisins will be less than 300,000 tons compared to the 365,000 ton crop, which over the last 12 months our packers have done a commendable job of selling and shipping the entire amount.

Compared to the 20% crop reduction, the increase in this year’s price was a significant compromise taking into full consideration Turkey’s unusually large crop which caused their sultana price to fall.Packers are reporting challenging selling conditions into parts of Europe where sultanas control significant market share. Still, the RBA is giving the industry a crop clearing price because sultana berries are very small and will not work for a large percentage of loyal California raisin customers who specify larger berries, stricter growing and specification requirements, longer shelf-life, and superior flavor.

Steve Spate, grower representative for the Raisin Bargaining Association, “This year’s price was definitely a compromise–one that may make make neither side happy. But, hopefully it will put us in a better position for next year.”

Despite the higher price, California raisin growers face a challenging year as they will receive less revenue in total from this year’s harvest. Price is not the only issue; amid other challenges, growers must deal with continued increases in cost and regulation for labor and water. These issues coupled with other more profitable crop options, such as almonds, walnuts and pistachios, are forcing growers to evaluate how to maximize the use of their land and water resources, contributing to the escalating acreage reductions we have witnessed. For the past ten years, the state has reported a 2%-3% annual reduction in raisin-grape acreage that is now accelerating. Spate said, “The conservative estimate is at least a 10- to 15,000-acre loss of the natural seedless variety by early Spring 2015. You don’t have to drive more than two miles in the Central Valley to see a pulled raisin field or one in preparation to be pulled.”

Goto hopes this year’s modest price increase will encourage California raisin growers to continue producing enough of the safest, most high-quality raisins in the world to meet yearly demand.

Mark your calendars!

The 48th Raisin Bargaining Association Annual Membership Meeting

March 14, 2015
Location TBD
10:30 AM with luncheon to follow

Patrick Cavanaugh2016-05-31T19:32:15-07:00November 11th, 2014|

2014 California Winegrape Harvest: Earliest and Third in a String of Great Vintages this Decade

By: Monique Bienvenue; Cal Ag Today Social Media Manager/Reporter

California vintners and growers across the state are grateful for another excellent vintage, despite an ongoing drought and earthquake that rocked south Napa in late August just as crush was getting underway. A mild winter and spring caused early bud break, although the overall length of the growing season was similar to past years.

“We are about 80 percent done, going into the second week of October,” said Glenn Andrade, vice-president winemaking for Trinchero Family Estates, farmers of more than 10,000 acres of vineyards across Napa, Sonoma, the Central Coast, Lodi and Amador. “We’ve had pretty light to moderate yields this harvest, resulting in exceptional quality. Our Amador Zinfandels are amazing—great intensity and quality. We should be done by the week of October 20, which is early for us, as typically, it’s the first week in November.”

According to the United States Department of Agriculture Pacific Regional Crop Production Report of August 2014, California’s winegrape production this year is forecast at 3.9 million tons, down 8 percent from 2013’s record high crop. The 2014 harvest is the third largest on record.

“The 2014 vintage was by far the earliest start of any harvest I can recall,” said Adam Mettler, director of winemaking for Michael David Winery in Lodi. “Early concerns about adequate storage quickly faded as our vineyards continued to check in at 20-25 percent down in volume from the previous two years. The moderate crop size allowed for rapid sugar accumulation early, which created some challenging high-density fermentations, but resulted in some real nice wines.”

A compacted harvest began in July for sparkling wines and started winding down by mid-October for later ripening varieties. Moderate temperatures, with only minimal rain in September, allowed for even ripening. Despite unusual circumstances, President and CEO of Wine Institute Robert P. (Bobby) Koch is extremely pleased with the 2014 vintage for California wine.

“We are very pleased with the assessments of an exceptional 2014 vintage for California wine statewide,” said Koch. “And we look forward to sharing these outstanding 2014 wines with wine lovers throughout the nation and the world. Although we came through this harvest without major impact, we’re keenly aware of the ongoing drought and its effects on California’s entire agricultural community, including wine. We are doing our part as vintners and growers to mitigate water usage through a variety of sustainable practices.”

Patrick Cavanaugh2016-05-31T19:32:18-07:00October 28th, 2014|

Bayer CropScience Will Honor a Leader in the Produce Industry

Bayer CropScience Produce Innovation Award Goes to Grower with A Great Idea

Bayer CropScience will honor a leader in the produce industry whose thinking, practices and use of technology enhance the role of produce in creating better lives. The Bayer CropScience Produce Innovation Award will recognize a grower whose innovative efforts improve yield and quality of a produce crop; increase accessibility of produce to a broader group of people; or increase demand for produce by expanding awareness and appreciation for the health benefits of fruits and vegetables, including tree nuts and potatoes.

“Bayer CropScience is proud to honor a grower with this award demonstrating the power of ‘Science For A Better Life,’” said Rob Schrick, horticulture lead, Bayer CropScience. “‘Science For A Better Life’ is our mission at Bayer, and we’re excited to spotlight an innovator that deploys methods in the field, across their operations or within the supply chain to enhance the positive contribution of produce on individual lives and society overall.”

“There currently is a great deal of discussion surrounding the nation’s health, and there are many challenges regarding nutrition and produce availability among economically and culturally diverse communities. One thing is for certain: fruits and vegetables, including potatoes and tree nuts, provide crucial nutrients to positively impact health and enhance lives.”

Bayer announced the new award program during the Produce Marketing Association’s Fresh Summit Convention and Expo in Anaheim, California. Entries will be accepted now through January 5, and the winner will be announced during Bayer’s 10^th annual Ag Issues Forum, being held February 24 – 25, 2015, in Phoenix, Arizona.

The award is open to any grower who receives a significant portion of income from the production of a crop within the citrus, grape, pome fruit/stone fruit, tree nut, vegetable or potato industry. The winner will receive an all-expense paid trip to the 2015 Ag Issues Forum in Phoenix, a $10,000 grant to advance their award-winning innovation or to support a project in their local community that also increases the positive contributions of produce in people’s lives, a $2,000 gift card to the Apple Store to further efforts in business technology, and recognition as a produce innovator.

“We are looking for individuals and operations who aren’t afraid to try new things and who embrace technology to advance the industry and enhance the positive contributions of produce,” Schrick said.

Bayer CropScience aims to leave a better world, harnessing cutting-edge agricultural innovations to deliver on Bayer’s mission: Science For A Better Life. Bayer’s Horticulture group offers customized, integrated crop solutions based on high-quality vegetable seeds, effective chemical and biological crop protection, and complementary services.

Visit www.bayercropscience.us/ProduceInnovationAward for more information or to submit an application. See official rules for more details.

Patrick Cavanaugh2016-05-31T19:32:18-07:00October 23rd, 2014|

Bayer CropScience Offers Biologic ‘Serenade’ to Fight Pests

Serenade Offers Big Dividends to Growers Fighting Pests

By Kyle Buchoff, CaliforniaAgToday Reporter

In this new frontier of pest and disease controls with biological fungicides and insecticides, Dr. Jonathan Margolis, the Vice President of Biologics Research for Bayer CropScience at the company’s new West Sacramento Research Facility, recently commented on Serenade, a major biologics product used by many growers. “When I joined Bayer in 2005, I would never have expected that we would still be spending this much effort on fundamental basic research on understanding Serenade and its mode of action, and ultimately on improving it.”

“We’ve invested a tremendous amount of resources on characterization of the chemistry that’s produced by the microbe,” Margolis explains, “on understanding how it interacts with plants—the signals it exchanges with plants to stimulate their growth and turn on host defense responses. Even more importantly, we want to understand the fundamental genetics of the organism so, in the future, we can use physiological cues, nutrients and growth conditions to change the way it produces these biologic chemicals in terms of increased efficiently.”

The company states that Serenade is a fungicide and bactericide that stops harmful spores from germinating, disrupts cell membrane growth, and inhibits attachment of the pathogen to the leaf. Biologic applications target Botrytis, Sclerotinia, Xanthomonas, and Erwina on grapes, strawberries, leafy vegetables, potatoes, pome fruit and tree nuts.

(Featured photo source: “Enhancing Global Food Security, Facts and Figures 2012-2013 Bayer CropScience”)

Patrick Cavanaugh2016-05-31T19:33:24-07:00September 23rd, 2014|

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.

Patrick Cavanaugh2016-05-31T19:33:25-07:00September 18th, 2014|

California Center in Shanghai Offers Direct Trade Gateway to Calif. Ag Industry

By Kyle Buchoff, Reporter

Strategically located in the new free trade zone in Shanghai, the California Center offers California companies a direct gateway to buyers and wholesalers in the Shanghai metro area (pop. 20 million) and beyond. The California Center is a private entity but enjoys strong support from both the California and Chinese governments.

Gordon Hinkle, VP California Center

While the Center showcases a huge range of California products and services, agriculture comprises the single largest trade category. Gordon Hinkle, vice president of the California Center explains, “Our range of members runs across the gamut, but we do have a heavy [emphasis his] emphasis on ag because some of the highest demand for California goods and services is in ag and wine. We aren’t limited only to food and ag, but I would say it is the largest portion of what we are doing.”

The former international trade director for the California Asian Pacific Chamber of Commerce, Hinkle said, “We have a lot of different organizations and associations that are involved with us,” Hinkle continued, “to help promote their products. Everything from processed goods to fresh fruits and vegetables…a very important part of what we are doing is working directly with the ag community.”

Recently Mr. Hinkle and other associates visited pistachio, raisin and olive oil producers in the Fresno area. “These are the folks we are helping to introduce and increase their exports into China, and we have had very good early response.”

Gordon also serves as a Committee Chair for the 150^th Anniversary Celebration of the Chinese Workers Contribution to the Construction of the U.S. Transcontinental Railroad, which will be holding numerous events in 2015, recognizing Chinese contribution and significance to American history.

The California Center provides door-to-door service to bring products to Chinese buyer destinations in a seamless operation that includes: shipping, customs clearance, warehousing, sales transactions and customer services. Through the center’s portal, Chinese buyers can navigate through listed California companies seamlessly and with great ease!

Patrick Cavanaugh2016-05-31T19:33:25-07:00September 17th, 2014|

Specialty Crop School Scheduled in Salinas Oct. 7-9

Salinas Valley Short-Course to Focus on Business and Regulatory Drivers for Coastal Crops

The October 7-9 Specialty Crop School features California’s Salinas Valley where lettuce, cole crops, strawberries and wine grapes reign.

This intensive 3-day course has been specifically designed for suppliers to specialty crop businesses who require an in-depth understanding of key drivers impacting Salinas Valley growers and their purchasing and management decisions. The year-round production cycle of the Salinas Valley sends fresh leafy greens, vegetables and other cool season crops to markets around the world.

Participants will return to their organizations equipped with new information to refine their business strategies according to new food safety, pest management, traceability and water requirements as well as meeting retailer demands.

The Salinas Valley School, headquartered in Watsonville, will include field visits to farms, processing facilities and research centers as well as discussions with growers, pest management experts, agronomists, regulators and university scientists. Field stops are planned in lettuce, cole crops, artichokes, strawberries, seed production and winegrapes.

Featured speakers include Bonnie Fernandez from the Center for Produce Safety at UC Davis; Richard Smith, Monterey County Cooperative Extension; Becky Sisco from the IR-4 Minor Use Registration Program; Richard Spas, CA Department of Pesticide Regulation and representatives from several local farming companies.

Early-bird rates are available until September 10 and registration closes on October 1. Class size is limited and seats are available on a first come, first served basis.

For complete Specialty Crop School course topics and registration information, go to www.specialtycropschool.com

Patrick Cavanaugh2016-05-31T19:33:29-07:00August 25th, 2014|

Kern County Ag Ranks Second in State, Fresno Drops to Third

Ruben J. Arroyo, Kern County Agricultural Commissioner reported the 2013 gross value of all agricultural commodities produced in the county was $6,769,855,590, according to the 2013 Kern County Agricultural Crop Report, representing an increase (6%) from the revised 2012 crop value ($6,352,061,100). Thus, Kern County ag ranks second in state, with Tulare ahead, and Fresno behind.

Kern County’s top five commodities for 2013 were Grapes, Almonds, Milk, Citrus and Cattle & Calves, which make up more than $4.6 Billion (68%) of the Total Value; with the top twenty commodities making up more than 94% of the Total Value. The 2013 Kern County Crop Report can be found on the Department of Agriculture and Measurement Standards website: www.kernag.com

Tulare County reported gross annual production in 2013 at $7.8 Billion, Fresno County, $6.4 Billion, and Monterey County, $4.38 Billion.

As predicted by many, including CaliforniaAgToday on July 15, 2014, Fresno County, long-time top ag county in the state—and in the nation—now ranks third in the state and has regressed in ag growth since 2011.

Les Wright, Fresno County Ag Commissioner, attributes much of the decrease to the water shortage, particularly exacerbated by a large part of the West Side being dependent on both state and federal surface water deliveries that have been curtailed by pumping restrictions due to the Endangered Species Act.

Patrick Cavanaugh2016-05-31T19:33:30-07:00August 19th, 2014|

Forest Fires Could Be Impacting Winegrapes

Smoke Taint Could Cause Off-Flavor Vines

Many forest fires throughout California have been near or upwind from many winegrape vineyards and could be causing problems for the grapes.

Jim Kennedy, a professor and chairman of the Department of Viticulture and Enology at the California State University of Fresno, explains a particular serious problem due to smoke enveloping vineyards.

“A lot of these fires are getting very close to the wine industry, and that’s a problem because the smoke that these fires generate, they come in contact with clusters of fruit. The compounds that are smoke get absorbed onto the fruit and the plant likes to modify these compounds, because it can be quite toxic to plant cells,” said Kennedy. “The wine gets made from that fruit and the wine ages, the smoke compounds become released again, and it’s a real problem. Your wine starts to resemble an ashtray, its smell and character,” he added.

Kennedy said the tragedy is that the fruit is exposed to the smoke and it’s not readily and obviously upfront as problematic.

“A winemaker goes through the wine-making process thinking their fruit has escaped the problem, and low and behold a year down the road its become an ashtray. And that is something as the grape and wine industry we’re really keeping an eye out on these forest fires, and consulting with winemakers in these different regions so they are aware that this is a potential issue,” said Kennedy.

Kennedy said that this problem, also known as “smoke taint” has been seen many times.

“The classic sample is Australia. With the bush fires in Australia a lot of the vineyards are very close to eucalyptus groves, and so there’s a lot of research that has come out of Australia in terms of how to measure the potential for smoke taint in fruit and how to deal with it once you got it. The Australians tend to be on the front-end of it because it’s an issue that has much more potential for disaster in their industry,” said Kennedy.

Patrick Cavanaugh2016-05-31T19:33:31-07:00August 15th, 2014|

Winegrapes: New acreage helps offset drought impacts

Source: Steve Adler; Ag Alert

Although per-acre yields may be down in some regions due to drought and other concerns, California farmers expect to produce another large winegrape crop this year, as a result of increased acreage. Winegrape harvest has started throughout California, primarily for early varieties of white grapes that are destined to become sparkling wines.

Government estimates issued last week placed California winegrape acreage at 570,000 acres in 2013, up from 508,000 the previous year. About 45,000 of the 2013 winegrape acres were classified as non-bearing.

With the harvest beginning in most areas from 10 days to two weeks earlier than usual, the biggest concern among growers is that many wineries do not yet appear prepared to receive the grapes.

“Being this early, I don’t believe the wineries were prepared to open on time, so right out of the gate we had some quality issues because of early ripeness and delays on the winery side,” Tulare County winegrape grower JR Shannon said. “We’ve barely been picking for two weeks and it is already showing signs that the winery tanks are still full from last year and they aren’t very eager to get grapes in right away.”

Noting that harvest will continue for several more weeks, Shannon said many wineries haven’t even opened yet.

“The early signs are that it is going to be a long, non-grower-friendly season and the wineries are showing no excitement about anything except pinot grigio. We spent a lot of money planting these new vineyards for them and they are not cooperating in getting the grapes into the wineries,” he said.

That view was supported by Nat DiBuduo, president and CEO of Allied Grape Growers in Fresno, who said there is real concern among growers who don’t have contracts with wineries.

“We are getting reports of some of the larger wineries that have decided to bottle as needed, which means the tanks are full. We know the 2012 crop and the 2013 crop were big, and what that has created is that they aren’t buying any more grapes than what has been contracted for. And there are a lot of grapes that aren’t contracted,” he said.

DiBuduo said the vast majority of grapes are under long-term contracts, but there are some that don’t have contracts and growers in that situation are just waiting for wineries to start buying them.

“I hope the wineries start to realize that this is going to be a lighter crop. They will all honor their contracts, but I am hopeful that they will recognize the smaller crop and buy these other grapes. The speculation is that some of these wineries will come out with lower prices when all of these growers are in panic mode,” he said.

In Lodi, winegrape grower Joe Valente of Kautz Farms said harvest at his vineyards would begin this week, putting it 10 days earlier than usual.

“It is probably one of the earliest or second-to-the-earliest starts that I have seen here in Lodi in the past 35 years. We are starting this week, but it all depends on the sugars. Ideally, once we get started we can keep going, but it is all dictated by the sugars,” he said.

Valente also expressed concern about a potential shortage of tank space for this year’s grapes.

“The last two years were large crops, and how empty the tanks are going into harvest will dictate how much we will be able to pick. It depends on the varietals that are in demand. They will find room in the tanks for certain varieties that are in demand,” he said.

On the South Coast, grape grower Jeff Frey of Santa Maria said he has heard talk of tank shortages, but at this point it doesn’t appear to be an issue in his area. A bigger issue for coastal growers is the ongoing drought, he said.

“The situation concerning drought on the South Coast depends on where you are at. We haven’t had any rain to speak of, but growers who were able to irrigate through the winter are looking pretty good. We have a pretty good crop set and we will start harvesting next week, which is very early for us. I have a few vineyards that are out of the periphery that have wells that are going dry and there isn’t much water, so those yields will be down,” he said.

In the Paso Robles area, grower Neil Roberts of Templeton said he is very pleased with the way winegrapes developed this year.

“The crop looks average in size, which is probably a good thing, and the quality looks tremendous,” Roberts said. “We’ve been OK with water. Some of the shallower wells have had some issues, but overall there weren’t any problems. If everything goes well, we should be done by the end of October.”

DiBuduo said the drought is having an impact in the San Joaquin Valley as well. The quality of the grapes being produced is fine and sugar levels are good, but the berries and the bunches are smaller, he said.

“It appears that the overall crop will be lighter than last year and a lot of it has to do with the drought. Growers have tried to maintain the vines and keep them as fresh as possible, but we are hearing from all over the place about growers’ pumps going out and it has been taking several weeks for the pump repair people to take care of the problem,” he said.

Shannon, too, has been having problems with lack of water. He said he has been forced to pay up to $1,200 an acre-foot for water that in a normal year costs $60.

“It is kind of salt in the wound right now with all the other issues we have been dealing with,” he said. “Hopefully the groundwater will last another three months.”

Shannon said he has three or four wells out of commission waiting for pump repair, calling 2014 “the toughest year in my experience.”

Valente said that so far this season, he hasn’t had any problem with wells.

“Our concern is groundwater legislation and what that might mean to us. We keep hearing that farmers aren’t managing our groundwater, and I truly believe that the state and federal governments aren’t managing our surface water,” he said.

Patrick Cavanaugh2016-05-31T19:33:32-07:00August 13th, 2014|