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Industry Insights
Industry Insights
Ag TRENDS Articles
March 29, 2024
posted by Dr. Dave Kohl
In 2024 and beyond the quarter-century mark, managing trends and disruptions will be a high priority when conducting strategic planning for ag operations.
January 24, 2024
Agricultural Economics and Finance: Views from the Rearview Mirror and Windshield
posted by Dr. David M. Kohl
People often say that time seems to accelerate as one ages. Of course, I can defend that comment because I am that age and demographic. The year 2023 has quickly gone by and movement towards the quarter-century mark is upon us.
October 04, 2023
Global & Domestic Economic Snapshot: Think Globally, Act Locally
posted by Dr. David M. Kohl
The phrase think globally, act locally has never been more appropriate in managing business, household and personal financial decisions.
SEARCH BY STATE
Wine Vineyard
Jan 26, 2024, 10:52 AM
Title :
Wine Vineyard
Short description :
Industry information for Wine Vineyards in the Pacific Northwest. Updated 3/31/2024
Survey link :
https://www.surveymonkey.com/r/WineVineyardSnapshot
AgWest Farm Credit’s 12-month outlook sees wineries as slightly profitable and vineyards as breakeven.
- Excess wine supply in Washington
- Removal of uncontracted acres
- Winter damage in some growing areas
- Mixed Direct-to-Consumer sales
- A large crop in California
- Declining imports
Profitability
As a whole, wineries should be slightly profitable, and vineyards breakeven over the next year. Both Washington and California are likely to remain oversupplied for multiple years. Some producers with uncontracted production in Washington are removing acres and some vineyards experienced damage over the winter. Direct-to-Consumer sales are mixed, with Oregon and California experiencing declines in sales volumes. Falling import volumes and rising per-bottle values may provide some support to domestic prices.
Industry drivers
Wine grape acres decline in Washington
Some producers with uncontracted production are removing acres in response to an oversupplied market, particularly with cabernet sauvignon. Some growers may replant with varieties that are better aligned with consumer demand, including sauvignon blanc and chardonnay. It can take three to six years for new varietals to come to market, and the long-term impact on prices is not clear.
Cold weather damages vineyards
Cold weather in January damaged some vineyards in Walla Walla, northern Washington and British Columbia; however, the extent is not yet known. Damaged acres could reduce wine grape production in 2024.
Excess wine supply in Washington
While the removal/replanting of vineyard acres and damage from recent weather events could reduce yields and improve the supply and demand balance, Washington is likely to remain oversupplied over the next couple of years. Excess inventories with multiple vintage years remain a challenge.
California’s 2023 crop size increases
California’s 2023 wine grape crop increased 8% from 2022, in part due to production gains in the North Coast, Central Coast and northern interior regions; however, a significant number of tons were not harvested due to weak demand and quality issues. As in Washington, California faces an oversupplied market.
Direct-to-Consumer (DtC) sales mixed
DtC sales values in 2023 were relatively flat across the West Coast; however, declines occurred in terms of volume in both California and Oregon. National DtC sales are increasing in the $60+/bottle categories and falling in lower-priced tiers.
Imports decline in 2023
Wine imports declined from nearly every major trade partner, particularly Chile (down 45% year over year), France (16%) and Italy (13%). While total value declined as well, per-bottle values increased by 7% on average. Reduced import volumes and increased per-bottle values could support domestic prices.
Wine imports by country
Source: U.S. Census Bureau.
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