Wine and Wine Grapes

November 14, 2024

Wine grape updates

2024 crop quality is generally good, but uncontracted growers face difficult conditions.

Harvest on the 2024 wine grape crop is wrapping up across the West. In the central coast of California, quality is generally very good, but yields are down between 20% and 50%. Anecdotal reports suggest some quality issues for cabernet sauvignon around Paso Robles. Unlike the 2023 season where California growers left a significant level of fruit on the vine due to excess market supply, the entire 2024 crop is being harvested and sold. Prices for uncontracted wine grapes are weak.

In Washington, the wine grape crop appears average in terms of yields and quality, with some reports of smoke taint across the state. Growers around Lake Chelan were impacted by frost damage. Markets are almost non-existent for uncontracted wine grapes and there are reports of buyers not honoring existing contracts. Growers who reduced fertilizer and chemical inputs to lower production costs are now facing quality issues such as powdery mildew. The Walla Walla region remains a bright spot for the state, experiencing both good quality and pricing for the 2024 crop.

In Oregon, yields and quality are generally favorable. Wine grape prices range widely, with some uncontracted growers facing limited markets and others with contracts and/or established reputations experiencing strong prices. In Southern Oregon, some acres went unharvested due to oversupplied markets and there are reports of powdery mildew.

Profitability

September 11, 2024

Wine: Breakeven profitability - Neutral 12-month outlook
Wine grapes: Slightly unprofitable - Neutral 12-month outlook

Weak markets and excess supply are pressuring wineries. This is unlikely to change over the next year.

Weak markets and excess wine supply are lowering demand for wine grapes. Producers without contracts may find it difficult to find a home for their fruit.