As one of the world’s premier growing regions, California’s dynamic grape industry continues to thrive—and we give you the lowdown on this season’s varieties, varmints, land, labor, water, and weather.
California boasts over 99 percent of all grapes grown commercially in the United States, with over 70 varieties to satisfy every taste. And through the ongoing development of new cultivars, availability now stretches from May to January with plenty of bounty for the fresh consumption, winemaking, and raisin industries.
Sanger, CA-based Sarabian Farms grows grapes for both the fresh and raisin markets. When Michael Sarabian’s father first started the business, grapes were their only crop, but tree fruit, vegetables, and nuts were added as the years passed.
Currently, grapes account for about a third of the farm’s output. “As far as grapes, we’re in a happy place,” comments Sarabian. “Labor really is a factor and grapes are labor intensive, [but] most of our grapes go to raisins. We take the top quality for fresh market; what we don’t sell, we harvest for raisins.”
The table grape industry has performed particularly well in the past few years, continuing to surpass production records. This is due in part to increasing per acre output. Sarabian says there have been some advances in trellis systems, with growers are using more overhead trellises to increase quantities. “If the market can absorb higher production every year, this bodes well for the industry.”
Another part of the equation is enticing consumers to buy more grapes after trying new varieties. Grower-shippers continue to introduce new proprietary varieties, most variations of longtime favorites, like the Green Emerald from Sunlight International Sales or the recently announced ‘Milano’ from Columbine Vineyards, to add to its green seedless varieties.
A specialty variety gaining attention this season, the “Cotton Candy,” is a green grape that tastes like—you guessed it—cotton candy. Though only produced in limited quantities in California, additional acreage is being planted in Mexico as well to keep up with demand. Cotton Candy grapes are scheduled to hit stores in August or September and are especially popular with children.
Other new varieties grown in Mexico for shipment to U.S. markets include the strawberry grape and the Sweet Celebration, developed by breeders at the renowned Volcani Institute, which works with growers from all over the world. The Sweet Celebration variety is candy apple red with high levels of both sugar and acid. One of the more unusual grape varieties gaining popularity at retailers is called “Witch Fingers” commercially—with slender, elongated, rather pointy black grapes with a very sweet flavor. This late summer-early fall fave is also attracting younger consumers.
So far, California weather has been on the side of growers. John Harley, vice president of sales and marketing at Anthony Vineyards, Inc., a grower and shipper in Bakersfield, estimates table grape production will jump from the 105 million units (19-pound box equivalent) produced last year to more than 117 million. Harley believes the state’s environment, soil type, and weather make it ideal for grape production.
Speaking of weather, Louie Galvan, director of Delano-based Fruit Royale, Inc., says this year growers did not benefit from a cool winter—instead there was an “early frost, then we jumped right into spring.” Since table grapes require dormant hours or ‘chill time’ to come into spring with full vigor, this year’s abrupt temperature change forced the fruit out sooner. The result, Galvan believes, may be smaller bunch formation.
Imports, Exports & Top Competitors
Overall exports of table grapes are on the rise, with nearly half of production shipped to countries around the world. Canada is the top destination, buying between 15 and 17 percent of California’s table grape crop annually, followed by China and Mexico.
“People like grapes and it used to be the only thing they wanted was the red seeded, the Red Globes, but that’s not the case anymore, and we’re sending more late-season varieties,” commented Chuck Olsen, president of The Chuck Olsen Company, Inc., based in Visalia.
Olsen also sees exports rising, particularly as demand in mainland China and Southeast Asia continues to build. Although Chinese growers are cultivating their own grapes, Olsen believes the country lacks the infrastructure, including roads, cold storage facilities, and safety requirements to support large-scale production and shipping. He also notes shipments to Taiwan have increased over the past two years, and Vietnam as well.
As far as top competition for California, Ferrell Hughes, senior vice president at Paramount Export Company in Oakland, cites them by geographic location: in Asia, it’s China; in Europe, it’s Spain, Italy, and Greece; in the Southern Hemisphere, it’s Chile and Peru; and in Africa, it’s South Africa.
Paramount Export’s top supplier for table grape imports is Chile followed by Peru. Hughes mentions that Chile still has a nod on volume and that although it will take a few years, he believes Peru will take the lead in imports to California. “Peru is getting better quality and is in a better position against early grapes in the region. Their grapes are coming in earlier and lasting longer.” Paramount Export ships to 33 countries with Asia being a top buyer in Southeast Asia and throughout the Pacific.
According to Olsen, California’s location is not only a prime asset in growing grapes, but in regard to competition as well—since the growing season of other major producers is opposite that of the Golden State. The exception is Mexico, which does compete with Coachella Valley. Though Mexico matches Coachella closely in climate, it doesn’t have as much impact up in Visalia, where he is located.
New Varieties & Future Predictions
In keeping with the past few years, the Flame Seedless variety continues to dominate table grapes, and growers continue to plant more acres with the perennial favorite.
According to the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS), by 2005 there were 16,891 acres of Flame Seedless varieties planted in California’s grape country, and more acreage was added for the next six years totaling 1,287 acres. Though new acreage did fall dramatically in 2012 and 2013, the grand total currently in operation has reached a staggering 18,270 acres.
In wine grapes, Chardonnay and Cabernet Sauvignon are the leading wine varieties, as wine consumption continues to climb in California and throughout the United States. Like table grapes, wine grape acreage has ridden a wave of heightened interest and growers have continued to add to their plantings. Wine grape acreage rose from 2005’s 408,852 acres to a total of 494,192 acres in 2013 as listed in a recent NASS report. Of this acreage, red wine varieties dominate total acreage (308,698 acres for red, 185,495 acres for white). And lastly, regarding raisins, Thompson Seedless grapes continue to maintain their hold on the raisin market, while also remaining popular for the fresh market, juice concentrates, and wine.
With more than three decades experience in the grape industry, Hughes has seen varieties come and go. The Flame Seedless, the first red seedless grape, had a very short window, but now growers have Crimson Seedless, Vintage Red, and Scarlet Royal—all of which are available into September and early October, and can be stored well into January.
With this extended selling time, grapes are no longer just a summer treat. In addition, Hughes finds Red Globes have been “replaced by more consumer-friendly varieties that are seedless, big, and bright—it’s all about what the consumer wants.”
This year’s early start to the season provided adequate supply and ample time to get grapes to marke for the kickoff of summer, Memorial Day weekend. Most suppliers and retailers were also pleased Independence Day (July 4) fell on a Friday this year, allowing for better sales and promotional opportunities.
Harley applauds advances in growing technology, especially ‘heartier new varieties’ that can stay on the vine longer and mature later to extend the growing season. More growers are also covering their vineyards with plastic to keep grapes on the vine into the fall months, which he says has “allowed us to expand into November, shipping through December and into January.”
This extension, Harley maintains, has had a dramatic effect on the California grape industry. “In the past, most of November, December, and January were dominated by imported commodities from South America or other locations.” Now, with the adoption of advanced technologies and the introduction of new varieties, growers are able to ship and sell domestic grapes instead of imports. “Customers tend to stay with domestic products longer if the varieties are available and the quality is there,” he explains, which is exactly what California table grapes have been able to deliver.
Traceability also builds consumer confidence, and for its part, Stevco, Inc., headquartered in Los Angeles, is continuing to improve product traceability and its presence on social media at the same time. “We’ve partnered with HarvestMark,” explains Jared Lane, Stevco’s vice president for sales and marketing, to give customers real-time tracking information. “If the customer likes [the product], they can find out where it was from,” further, he notes, “they can also Tweet it or share it on Facebook.
Sustainability Update
When asked about sustainability and implementing strategies to be more eco-friendly, Nick Dulcich of Sunlight International Sales, based in Delano, expressed a bit of frustration, stating, “This is a tricky question.”
Pest Management
Dulcich believes a shift in thinking about ‘cause and effect’ has occurred in California over the last two decades. Previously, growers were cautioned against using a number of pesticides and herbicides, as they were connected to bad press and consumer concerns.
“Then came integrated pest management (IPM) where ‘good’ bugs eat ‘bad’ bugs,” Dulcich says. Although buyers and consumers applauded the use of IPM, there were a few side effects—one being an increase in natural predators such as spiders. “So where do you draw the line?” he asks, “a spider in a bunch of grapes, or pesticides?”
Lane of Stevco had much the same reaction when asked about sustainable measures in the field. “That’s a very intense question,” he conceded, and he, too, brought up the spider problem. “In grapes last year, the biggest issue was the black widow spider. It was a big consumer issue this year, where we saw [internet] postings of spiders in the grapes.”
Indeed, there were numerous accounts of black widows tucked in containers or bags of California grapes, which had been shipped to grocery retailers across the country. Incidents were reported in Bismarck, ND (grapes bought from a Walmart store), Maplewood, MN (found in a student’s school-provided lunch), St. Louis, MO (Aldi), Wauwatosa, WI (Aldi), Brighton, MI (Kroger), Dillsburg, PA (Giant), and even up in Montreal, Quebec (Super C)—though no reported bites or injuries.
Given the danger posed by black widows, growers needed to treat their vineyards, but the necessary spray was highly toxic and not popular with environmentalists. Like Dulcich, Lane called it a “a double-edged sword”—but mentioned some growers decided to spray grapes while dormant, hoping to rid vines of black widows in the winter, before the grapes grew into bunches.
Other growers from the San Joaquin Valley to the North Coast areas had concerns about leafhoppers and webspinning spider mite populations, though there were no reports of major infestations affecting leaves or overall production.
More Ways to Be ‘Green’
In their efforts to be more eco-friendly, growers are implementing a number of measures from field to fork. Dulcich says Sunlight recently signed a three-year contract for electronic tensiometers to measure the amount of moisture in the soil.
Not only do the new meters provide anytime/anywhere access, but when managed correctly, can greatly conserve water—especially critical during the state’s ongoing drought conditions. Dulcich says he can check his “phone and know if the soil is dry or wet, and if they’re conserving water but not underwatering.”
Jasmine Vineyards, Inc. of Delano, CA, is working with EnerNoc, which provides ‘energy intelligence’ software that enables companies to analyze energy usage. “So at peak energy usage in the summer, say 100 degrees in July at midday, we receive a note to shut off our fans and slow our energy usage,” explains Brain Crettol, Jasmine’s sales manager. “This saves energy and alleviates pressure on the grid during peak power times.”
Sustainability is also impacted by packaging, especially with the adoption of recyclable bags. “As an industry, everything went into one (standard) bag,” commented Crettol. “Now consumers like bags with handles; they stand up on their own, can be easily carried, and hold more.” The bags replaced the use of Styrofoam, and changes also include recycled cardboard and plastic containers, which Crettol says “can be shipped and used over and over again.”
Courtney Kilian is based in Vista, CA and has worked with both domestic and international growers and organizations, including the Natural Resources Conservation Service and California Avocados Direct.
FRESH FORUM
What do you feel is the toughest challenge facing the table grape industry?John Harley—Anthony Vineyards, Inc.
Going forward, it’s going to be labor. Short-term it will be water, but looking five years out—labor will become a major issue as far as availability and cost. With grapes— a highly labor-intensive business—and the minimum wage going up and immigration issues—labor will stand out more than anything else.Chuck Olsen—The Chuck Olsen Company, Inc.
Our costs; in the last five years, labor has gone from $7 an hour to $10 per hour. Grapes are very labor intensive, so it’s a big challenge.Louie Galvan—Fruit Royale, Inc.
Water; it’s the number-one priority on everyone’s mind.Brian Crettol—Jasmine Vineyards, Inc.
Labor and water; California is in the middle of a terrible drought. On the West side of the valley, they’re letting the ground go fallow because there is no service water. All the water we’re using, we have to pump from the ground. Labor has been an issue for a number of years; grapes are very labor intensive. By the time grapes get to the consumer, they’ve been handled by human hands half a dozen times. Labor is very tight and expensive.Ferrell Hughes—Paramount Export Company
Water and land; there are always trends where people are pulling stuff out and putting stuff in. But overall, the water issue—if we don’t get more of a long-term solution.Michael Sarabian—Sarabian Farms
Labor; for California especially. The labor situation is difficult every year, and there are pockets [of time] every season that are extremely difficult. Water is up there too with the drought; if it would rain, then it would take away the pressure because we would have surface water again. Now all the water is from wells. With the surface water supply depleted, there’s pressure on the underground supply because that’s not replenished.Jared Lane—Stevco, Inc.
In our area right now, it’s water—water, and quality of water. Table grapes demand very clean water; grapes cannot handle salinity. Purchasing and procuring water is a big issue.Nick Dulcich—Sunlight International Sales
Weather; we’ve been a victim whether it’s drought or rain. It’s always something with the elements.
A Few Challenges
Although the table grape industry continues to expand, there are still challenges to deal with, such as labor and water.
Both Harley and Olsen cite labor as a major obstacle, though many growers are more concerned about California’s ongoing drought. Hughes believes the issue needs to be addressed with a long-term solution in mind, not quick fixes like some people digging deeper wells but not really considering the impact this may have on their neighbors or down the road.
Olsen explains that many grapes are grown in areas where there is little well water and are dependent on surface water. Given the current battle for water allocations, irrigation districts have warned if there is water available, it could cost as much as $650 per acre foot. This, of course, would affect pricing. “When you are talking $1.00, $1.50, or $2.00 more per box, that hurts—especially if you’re facing a tough market with a lot of fruit out there,” he says.
Concluding Thoughts
With table grapes reaching close to 110 million boxes last year, and quite a few young vineyards in the ground, the California grape industry could continue to break records for the next few years.
Hughes believes the only major limitation or caveat is water. Despite robust demand, some growers are tearing out grapevines and replacing them with nuts, which require even less water. Despite the challenges, however, most California growers are finding ways to adapt, especially with an extended season.
With such quality fruit and high demand, many grower-shippers believe the sky is the limit. “At the end of the day, consumers buy with their eyes—especially grapes,” says Jasmine Vineyards’ Crettol. “They’re an impulse buy; as long as they look good and we get them in front of the consumer, they’ll buy.”
