Agribusiness Update for Wednesday 5/1/13

Agribusiness Update for Wednesday 5/1/13

Fruit Snapshot. I’m Greg Martin with today’s Fruit Grower Report.

Once a quarter Michael Stolp with NW Farm Credit Services gives us a look at their snapshot of commodities around the region and he starts with a look at apple production.

STOLP: Good prices, strong demand and record sales supported by a short northern hemisphere crop suggests that NW apple growers can generally expect strong returns for the 2012-13 crop. Looking ahead, the NW apple industry will test its ability to market record size crops without the benefit of production shortfalls in the rest of the world. Interestingly, large NW crops coupled with a rebound in production in the U.S. east and midwest could over-supply the market. Growers are positioning for the future by paying off short-term debt, investing in efficiency boosting technologies and retaining profits as working capital. Labor costs and availability are expected to remain challenges.

Stolp looks at wine grapes.

STOLP: Wine grape prices generally increased during 2012, a trend the industry expects will continue in 2013. To date, growing conditions in Washington and Oregon have been favorable for the 2013 crop resulting in positive expectations for production and crush volume. Colder conditions in Idaho leave some uncertainty about winter damage but overall conditions are positive. Domestic demand for wine continues to be robust. Recent long-term investments in NW wine production assets by major industry players signals belief in the NW is a key region for wine grape and wine production.

That’s today’s Fruit Grower Report. I’m Greg Martin on the Ag Information Network. 

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