Issue link: http://winesandvines.uberflip.com/i/62409
GRAPE GRO WING the coastal growers to come closer to the traditional margins they have seen in grape prices over their interior counterparts. Even Sauvignon Blanc, which had been a grape marketing nightmare the previous two years, experienced high demand and prices that were closer to the prices paid prior to the recession of 2008-10. W&V: Should growers plant more grapes? What varieties and in what areas? DiBuduo: We have seen a quick turn- around in the market for grapes. Much of this is due to the impressive shipment numbers at the value and mid-priced seg- ments of the market, and a good part of it is due to the shorter crop in 2011. The relatively weak U.S. dollar has huge im- plications, as imports are less attractive. But just because we have seen a stronger year doesn't mean we need to plant thou- sands of acres of grapes. The strength of the market may be a short-term phenom- enon based on current conditions. If those conditions remain in place, then it can become a longer term opportunity. Nobody should be making planting decisions based on the performance of the market over any one- or two-year time period. It is more important to look at the growth rate of the industry (in terms of acres planted) over the past five years, as well as the growth rate of wine sales. Most of the data suggest that we have not been planting vines quick enough to keep up with vineyard removals and long-term market growth potential since about 2007. So our position is still not to do any speculative planting, but the industry could use additional acreage each year to keep up with potential market growth. "Pinot Noir's appropriateness in warmer regions is still questionable." —Nat DiBuduo, Allied Grape Growers Those new acres should be planted under contract with guidance from buyers on what varieties are needed and from what regions. There are two primary market forces determining what should be planted today. The first is vineyard removals. Much of what is being removed are older vineyards (generic varieties) that have served as the base for value-priced www.powerflexfence.com Premium Products at affordable prices... • Gripples & Torq Tool • Heavy Duty Tensioners • Hi-Tensile Wire (40 year life) • Knipex Tools (Lifetime Warranty) • Professional Wire Dispenser • Premium Crimp Tools & Sleeves Professionals Prefer PowerFlex wines or as blenders into value-priced va- rietal wines. Due to this age phenomenon, there is an opportunity to plant generics in the value-priced segments of the mar- ket (i.e. the Central Valley). The other force driving planting is the "what's hot today" phenomenon. And today, there are a number of "hot" varieties: Cabernet Sauvignon tops the list, and florals such as Muscat of Alexander are obviously there, but Chardonnay, Zinfandel and Pinot Grigio surely get honorable mentions. Not-so-desirable varieties are still Sauvi- gnon Blanc, Merlot and Syrah. Pinot Noir's appropriateness in warmer regions is still questionable, although the market remains strong, which presents lots of long-term questions for those thinking about it. W&V: As a result of cost consider- ations and ongoing labor shortages, is more mechanization probable in Califor- nia's vineyards? DiBuduo: As one looks at the harvest of the 2011 winegrape crop as well as many agriculture commodities, we saw a short- age of skilled labor to hand-harvest the crop as well as maintain the skilled labor to run the machine-harvesting crews. We see the availability of agriculture labor without a comprehensive immigration A Tradition of Excellence SGS-COC-005822 The Premier Printer for Wineries Sustainably Produced Pressure Sensitive and Glue Applied Labels • Commercial Printing "Wine is constant proof that God loves us and wants to see us happy." -Benjamin Franklin www.benfranklinpress.com 417-741-1230 • info@powerflexfence.com 480 Technology Way, Napa, California 94558 Tel 707 253-8250 Fax 707 253-8251 QSEE US AT UNIFIED, BOOTH #330 Wines & Vines JAnUARY 2012 93