Ciatti Co. Hoping for a Smaller Winegrapes Crop in 2017

Brexit Also A Concern for California Sellers

By Joanne Lui, Associate Editor

The Ciatti Company – a worldwide company headquartered in San Rafael, CA – has been in the wine, grape concentrate and spirit brokerage business since 1971. They are experts in the industry, and President Greg Livengood spoke to California Ag Today recently to give an update on this year’s harvest and prices around the globe.

Ciatti Co. President Greg Livengood
Ciatti Co. President Greg Livengood

“World supply is down a little bit this year from last. We saw some major weather events in the southern hemisphere to start out the year. … Starting in January in Argentina, we saw a fair amount of rain throughout the harvest. They were down a little over 30 percent from their three-million-ton average harvest and that really set the tone for South America,” Livengood said.

“Right behind that, the Chileans got going. They hit about the halfway point of their harvest when El Nino came and slapped them around a little bit. It rained very hard there – five major weather events – and their crop was down at least 20 percent, but in addition to that, they probably would have been down more, but they tried to salvage some of that fruit that suffered a lot of damage from the rain.”

According to Livengood, all of this may not affect pricing in California.

“It certainly helps to set a floor, a pricing floor, and that floor has come up,” Livengood said. “I don’t know that pricing necessarily will go in any direction here based on what happened down there, but … it’s a much more shallow dive that pricing could potentially take here if things go the wrong way.”

A real concern for California winemakers is actually Brexit – Britain’s exit from the European Union.

“ U.K.’s been a very good … market for wine. It is. They don’t grow a lot of their own so they’re buying it from everywhere else. It’s been a very good market for the U.S. The problem with Brexit is the economy. It’s the value of the pound, so the pound took a big hit when Brexit was announced. There’s concern it will take more of a hit. That decreases their buying power and that’s a concern for us here in the U.S. because our prices are generally a little bit higher than all of our competitors around the world,” Livengood said.

“We’re selling on the California name and we’re selling on quality and so as that consumer and as that retail buyer in the U.K. has less buying power, we do have concern that they may look for alternatives to California.”

Overall, Livengood actually hopes for a smaller crop worldwide because high crop yields in multiple years isn’t necessarily a good thing for the industry.

“You never want really long oversupply.  2013, worldwide, it was a bumper crop just about everywhere.  We had too much wine in ‘14 and ’15 … and it’s taken us almost three years to really eat through a lot of that inventory.  A shorter worldwide crop here in 16 is certainly something that we would welcome.”

Future Looks Bright with Young Cattlemen’s Club

Cal Poly San Luis Obispo Group Educates Fellow Students About Cattle

By Joanne Lui, Associate Editor

If their attendance at the California Cattlemen’s Association’s 100th Annual Convention was any indication, the future is bright for the next generation of cattlemen and cattlewomen. We spoke to Veronica Staggs, a junior at Cal Poly San Luis Obispo, about why she’s a member of the Young Cattlemen’s Club and what they are doing to educate students about the cattle industry.

Veronica Stacks, member of the Cal Poly San Luis Obisop Young Cattlemen's Club
Veronica Staggs, member of the Cal Poly San Luis Obisop Young Cattlemen’s Club

The club, which is a chapter of the California Young Cattlemen, has about more than 50 members, with both those who grew up on cattle ranches and many who just have a passion for livestock agriculture, Staggs said

Staggs, who is studying animal science at Cal Poly with the goal of becoming a livestock veterinarian, is one of those who doesn’t haven’t a background in cattle.

“I actually love cattle, but it’s a great industry to go into and to be a vet for because the people you work with are just so nice, and so genuine, and they’re so easy to work with,” Staggs said.

The prospect of working with cattle ranchers was a main reason that drew her to studying animal sciences.

“I just think that cattle ranchers are super easy people to work with,” Staggs said. “They’re super genuine. You can work well with them. They treat you like family, so I think being a vet for cattle ranchers would just be a super great job.”

Cal Poly San Luis Obispo is well-known for a great agriculture program in general. The Young Cattlemen’s Club does their part to get to engage fellow ag students about the cattle industry.

“We do a lot of networking with people not a part of agriculture to show them what’s going on,” Staggs said. “And most of them are pretty receptive to it, and actually get interested in what’s going on and seeing how their food reaches their table.

Recently, the club even brought a calf into the student union to let people meet the animal and to educate the public about food animals. The Young Cattlemen also use social media to get their message across.

“We try to put a lot of information out there for them, because we think that it’s important for everyone to understand how food reaches their table and that it’s not just from a super market,” Staggs said.

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Clovis, Calif., August 14, 2014  Timely, relevant and important California agricultural radio news is now available for the first time ever –online, 24/7. Find it at www.CaliforniaAgNews.com.

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