Monday, February 12, 2007

2006 Harvest Report Issued

The California Department of Food and Agriculture released data on last year's grape harvest. As expected, fewer grapes were harvested in 2006 than in the record-breaking year of 2005. Last year, 3.5 million tons of grapes were crushed as compared to 4.3 million tons in 2005. This is generally good news for farmers and wine makers as there remains a glut of wine in the market and aging in wineries' barrels and tanks. There are particularly large supplies of Cabernet and Merlot waiting to be sold.

The 2006 harvest continued to show the impact of the film "Sideways." Merlot production continued to decrease while Pinot Noir increased. Hopefully, the reduced Merlot yield will help alleviate the current surplus. Keep in mind, though, that nearly three times as much Merlot is grown as Pinot Noir. Chardonnay remains the most harvested wine varietal, followed by Cabernet Sauvignon, Zinfandel, Merlot, and French Colombard. (If you are not familiar with the last varietal, it is used largely in producing inexpensive white wine.)

Grape prices increased slightly from 2005 levels. Statewide, the average price paid for a ton of red grapes was $634. An average of $503 was paid for a ton of white grapes. However, in the Bay Area's premium wine producing counties of Napa and Sonoma the average price for a ton of wine grapes was $3,000 and $2,000 respectively.

The complete report may be found by clicking here.

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