CALIFORNIA CRUSH “BACK TO NORMAL,” WITH DECLINES IN CHARDONNAY
It looks like things are starting to balance out. The California wine industry can breathe a sigh of relief after preliminary reports last week that the 2006 grape crush met most expectations at a so-called “average” 3.1 million tons.
The California Agricultural Statistics Service (CASS) issued its Preliminary Crush Report for 2006 last Friday, reporting that 3.1 million tons of wine grapes were crushed in the state during 2006, a total tonnage decrease of about 16% compared to the painfully large 2005 crush. The 2006 return to more modest yields should help make up for the excess of 2005, which probably won’t be fully absorbed by the industry until 2009, left to sit in tank and barrel space until then.
Although 2006 ranks as California’s third-largest wine grape crush to date, average yields statewide were about 6.5 tons an acre, compared to nearly 8 tons per acre in 2005. (The second largest crush took place in 2000.)
The dip in production has helped continue the trend of steadily rising prices around the state despite the aftermath of the 2005 crush (although many growers feel that prices are still not high enough). CASS reported that grapes produced in Napa County (including Cabernet, Chardonnay and Merlot) received the highest average price, about $3,000 per ton. Sonoma and Marin counties received the second highest returns of $2,000, up 6% from the previous year.
The overall 2006 Chardonnay price of $750 was up 5% from 2005, and the Cabernet Sauvignon price of $953 was up 2% from 2005. The 2006 average price for Zinfandel was $508, up 8% from 2005, while the Merlot average price was down 9% from 2005 at $663 per ton.
In terms of the actually crush, Chardonnay yields were much lower than expected, ranked as one of the lowest Chardonnay crops that California has seen in the past six years. The total California crop of about 548,000 tons was down sharply from 740,000 tons crushed in 2005, which should help smooth over the oversupply problem.
"The 2005 harvest pushed Chardonnay into oversupply but the market for wine in bulk is signaling a much reduced inventory after the 2006 harvest. Interest in Chardonnay is stronger than it has been in seven years,” said Steve Fredricks, vp Turrentine Brokerage, in a statement.
The Cabernet Sauvignon crush was down 22% from 2005 but remains the second largest Cabernet crop ever in the state. In Napa, the region’s Cabernet Sauvignon set a new record price of $4,137 per ton — a 4% jump from last year’s all-time high.
Total Merlot tonnage fell 2% with 90,000 fewer tons crushed. This should help balance supplies as Merlot growers continue to grapple with the negative side of the ‘Sideways’ effect (although IRI numbers show that Merlot sales are rising). Still, 2006 was the second largest Merlot crop ever.
Pinot Gris tonnage increased from 66,000 to 76,000 tons harvested in 2006, while Sauvingon Blanc tonnage fell from 117,000 tons to 109,000. Zinfandel was down 24% percent to 340,000 tons.
Pinot Noir faired the best with production and prices increasing throughout the state. Tonnage increased by 11% with about 11,000 tons more Pinot Noir harvested in 2006 than in 2005. It seems that Pinot Noir is not far from becoming a mainstream varietal, much to the dislike of some industry vets who feel that many Pinot makers are not staying true to the wine. However, in terms of volume, there is still no comparison to the total tons of Merlot and Cabernet.
Overall, the harvest could have been better, but it definitely wasn’t bad. Thankfully, yields were much closer to average than in 2005, but it will take some time before the California wine industry makes a full recovery.
“It was an average yielding harvest on vineyards that are mature throughout the state,” said Nat Dibuduo, president of Allied Grape Growers in Fresno. “What we need is another average-to-below average year for the 2007 harvest so we can get all varieties back into balance.”
The California Agricultural Statistics Service (CASS) issued its Preliminary Crush Report for 2006 last Friday, reporting that 3.1 million tons of wine grapes were crushed in the state during 2006, a total tonnage decrease of about 16% compared to the painfully large 2005 crush. The 2006 return to more modest yields should help make up for the excess of 2005, which probably won’t be fully absorbed by the industry until 2009, left to sit in tank and barrel space until then.
Although 2006 ranks as California’s third-largest wine grape crush to date, average yields statewide were about 6.5 tons an acre, compared to nearly 8 tons per acre in 2005. (The second largest crush took place in 2000.)
The dip in production has helped continue the trend of steadily rising prices around the state despite the aftermath of the 2005 crush (although many growers feel that prices are still not high enough). CASS reported that grapes produced in Napa County (including Cabernet, Chardonnay and Merlot) received the highest average price, about $3,000 per ton. Sonoma and Marin counties received the second highest returns of $2,000, up 6% from the previous year.
The overall 2006 Chardonnay price of $750 was up 5% from 2005, and the Cabernet Sauvignon price of $953 was up 2% from 2005. The 2006 average price for Zinfandel was $508, up 8% from 2005, while the Merlot average price was down 9% from 2005 at $663 per ton.
In terms of the actually crush, Chardonnay yields were much lower than expected, ranked as one of the lowest Chardonnay crops that California has seen in the past six years. The total California crop of about 548,000 tons was down sharply from 740,000 tons crushed in 2005, which should help smooth over the oversupply problem.
"The 2005 harvest pushed Chardonnay into oversupply but the market for wine in bulk is signaling a much reduced inventory after the 2006 harvest. Interest in Chardonnay is stronger than it has been in seven years,” said Steve Fredricks, vp Turrentine Brokerage, in a statement.
The Cabernet Sauvignon crush was down 22% from 2005 but remains the second largest Cabernet crop ever in the state. In Napa, the region’s Cabernet Sauvignon set a new record price of $4,137 per ton — a 4% jump from last year’s all-time high.
Total Merlot tonnage fell 2% with 90,000 fewer tons crushed. This should help balance supplies as Merlot growers continue to grapple with the negative side of the ‘Sideways’ effect (although IRI numbers show that Merlot sales are rising). Still, 2006 was the second largest Merlot crop ever.
Pinot Gris tonnage increased from 66,000 to 76,000 tons harvested in 2006, while Sauvingon Blanc tonnage fell from 117,000 tons to 109,000. Zinfandel was down 24% percent to 340,000 tons.
Pinot Noir faired the best with production and prices increasing throughout the state. Tonnage increased by 11% with about 11,000 tons more Pinot Noir harvested in 2006 than in 2005. It seems that Pinot Noir is not far from becoming a mainstream varietal, much to the dislike of some industry vets who feel that many Pinot makers are not staying true to the wine. However, in terms of volume, there is still no comparison to the total tons of Merlot and Cabernet.
Overall, the harvest could have been better, but it definitely wasn’t bad. Thankfully, yields were much closer to average than in 2005, but it will take some time before the California wine industry makes a full recovery.
“It was an average yielding harvest on vineyards that are mature throughout the state,” said Nat Dibuduo, president of Allied Grape Growers in Fresno. “What we need is another average-to-below average year for the 2007 harvest so we can get all varieties back into balance.”
posted at 2:25 PM
<< Home