Profits Expected For Grape Growers, Wineries

As our six-part Northwest Farm Credit Services quarterly commodity snapshot series comes to a close, we wrap up with area wineries and cherries. Bill Perry, Vice President at NWFC said the 12-month outlook anticipates profits for vineyards and slight profits for wineries.

“Although crop size is below historical averages, low inventories and strong demand are driving up grape prices. Consumers continue to show a willingness to purchase higher-priced wines; however, consumption remains flat, and rising input costs and supply shortages will limit returns.”

However, when it comes to the cherry sector, Perry anticipates breakeven returns overall, as pricing did not recover as anticipated.

“Consumer interest was expected to be favorable but reduced fruit quality and cherry sizes [this year] resulted in lackluster demand.  Returns on cherries with limited damage and favorable fruit size are good, however pricing on small or lower quality cherries is likely below breakeven.  Some acreage wasn’t harvested due to heat damage and growers without crop insurance will suffer losses.”

If you missed any of our quarterly commodity snapshots, Click Here.

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