IAN Apples and Wine

IAN Apples and Wine

David Sparks Ph.D.
David Sparks Ph.D.
I love it when I hear positive predictions in agriculture. Well here's a positive. If you're an Apple grower here in Idaho there's a positive outlook for the Apple industry. Not surprisingly, those of you who are producing grapes for wine, the outlook is positive for vineyards. Where am I getting my information? Michael Stolp from Northwest Farm credit services spends his life analyzing the markets in agriculture and what follows is a small piece of his work.

Apples -- The outlook for the Northwest apple industry is positive, but tempered from last season. A larger U.S. apple crop has pressured Northwest fresh apple prices to levels lower than a year ago. As sales of East Coast and Midwest apples wind down, Northwest apple prices have firmed and are expected to stay strong through the remainder of the marketing season. The outlook for the 2014-15 apple crop remains clouded. Apple production in the Northwest is poised for a record year, but emerging weakness in export markets and uncertainty regarding labor availability could challenge the industry.

 

Wine/Vineyard -- The outlook is positive for Northwest wineries and vineyards. Global wine sales continue to increase and the Northwest has a growing presence on the domestic and world stages. Market dynamics have driven a rapid increase in wine asset and real estate investments from outside the region. California, the nation's dominant player in the wine and vineyard industries, is afflicted by exceptional drought. Irrigation water shortages in key growing regions could cause smaller fruit and lower yields for the 2014 harvest and beyond. Prices for grapes and bulk wine throughout the Western U.S. could experience upward pressure.

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