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Oregon’s Planted Vineyard Acreage Remains Stable While Washington State Is Overplanted
While Oregon’s vineyard acreage maintained stability in 2023, Washington State is experiencing an oversupply of wine grapes, as revealed by the Allied Grape Growers Nursery Survey. Key Washington producer Chateau Ste. Michelle plans to cut grape purchases by 40%, highlighting the state’s surplus, with an estimated 20-30% overplanting. This excess, especially pronounced in varieties like Cabernet Sauvignon and Chardonnay, is gradually being corrected through vine removal. Approximately 60,000 tons of grapes went unharvested in Washington last year. In contrast, Oregon’s production remains steady, with Pinot Noir as its champion variety. While there is a minor oversupply of Pinot Noir and challenges in the Chardonnay bulk market, the state is expected to reach a balance by the end of 2024. Jeff Bitter from Allied Grape Growers has noted the market opportunities that exist in Washington despite the overall surplus, indicating a nuanced situation among growers.
Treasury Wine says it is ready to ship Australian bottles to China | Reuters
Treasury Wine Estates has announced readiness to resume Australian wine exports to China, anticipating a lift in tariffs that previously halted shipments. With improved Sino-Australian relations, the company sees a significant opportunity, especially for its premium Penfolds brand. Despite a profit dip due to weaker U.S. sales, Treasury Wine met core profit expectations with a first-half EBITS of A$289.8 million. Shares soared as it prepared for stronger performance in the latter half of the year and maintained a positive outlook for organic growth. The company also maintained a steady interim dividend, reflecting confidence despite past challenges.
Napa Finds Itself in Court | Wine-Searcher News & Features
Napa County is entangled in legal challenges and federal investigations, with both the county and prominent wineries being subpoenaed, though not accused of any wrongdoing. The investigation concerns contracts, including those related to a problematic garbage dump and the Napa County Airport upgrade, and involves detailed requests for correspondence between the county and various wine entities. Among the issues is a controversial Walt Ranch development plan, complicated by a potential conflict of interest involving a county supervisor’s family. Separately, Napa Valley winery owner Lindsay Hoopes is engaged in a trial against the county over visitor rights at her winery, a case with potentially wide-reaching implications for local wineries’ operations and environmental balance in Napa Valley. With undercurrents of tension, the legal outcomes could significantly impact the region’s regulatory and environmental landscape.
€230m pledged to French winegrowers is an ’empty promise’
French winegrowers are skeptical about the pledged €230 million emergency fund by the government, labeling it an “empty promise.” Rhône Valley vignerons like Denis Alary and Florence Quiot, active in recent protests, have criticized the government’s response to their grievances, which include the removal of tax breaks on agricultural diesel and the high cost of electricity and government fees. They argue that the issues at hand are administrative and cannot be resolved merely by financial handouts. Alary and Quiot call for less stringent domestic regulations that exceed EU standards, which they claim are increasing production costs and reducing competitiveness with other European producers. The agriculture sector is feeling the squeeze of inflation, and these winegrowers want to ensure competitiveness and sufficient earnings, not just compensation. There’s uncertainty about the allocation of funds and whether it will genuinely support the winegrowers’ financial needs. With the Salon International de l’Agriculture approaching, producers seek clarity and concrete action from the government.
At the 57th World Ag Expo, a water seminar cast a shadow on the day with grim forecasts for the San Joaquin Valley’s agriculture due to diminishing water supplies and impending groundwater restrictions. A staggering 900,000 acres of Central Valley farmland are expected to be taken out of production to meet the requirements of the Sustainable Groundwater Management Act. Michael Ming from Alliance Ag Services relayed that the brunt of the impact would be on Kern, Kings, and Tulare counties, with predictably half a million acres inactive in Kern County alone. This is largely due to restrictive state water policies and environmental regulations, which have reduced available water from the State Water Project. The situation threatens smaller farms in particular and is causing land valuations to plummet while discussions on alternative land use are open and urging farmers to plan for a future with severely limited water resources.
Rainy weather makes for another wet California winter – Decanter
California is experiencing a wet winter with historic rains and high mountain snowfall in early 2024, following a very wet winter and spring the previous year. Wine producers across the state are seeing this as largely positive after recent drought conditions. In Napa, well-draining soils and established cover crops prevented significant vineyard damage, holding promise for the upcoming vintage. Sonoma Coast vineyards, benefiting from organic-rich soils, faced some challenges with wind-toppled trees but minimal vine damage. Winemakers emphasize the importance of the rains for groundwater replenishment, particularly in regions like the Sta. Rita Hills, where annual rainfall averages have already been met. San Luis Obispo Coast vineyards welcome the moisture, though concerns about delayed pruning and frost risk due to warm storms persist. In Paso Robles, the rain has been beneficial, enhancing water reserves with well-timed precipitation and cold temperatures that may help delay bud break and reduce frost damage. Overall, the conditions are set to contribute positively to the health of the vineyards and the quality of the future vintages.
Warm inland regions pressured by surplus and disease
Ciatti’s February 2024 Global Market Report indicates that Australia’s warm inland regions are expecting decreased production volumes due to El Niño-related hot and dry weather, variability in rainfall, and yield capping by wineries. Despite slightly improved Chardonnay volumes from the drastic reductions of the previous year, red grape yields are down due to disease, imposed yield caps, and overstock correction, leading to a surplus and downward pressure on grape prices. Meanwhile, New Zealand’s Marlborough region is predicting a “favorable” reduction in vintage, potentially 20% lower than in previous years. Amidst this, Australia holds out for a trade resolution with China, although import figures for Chinese wine have significantly decreased, with a notable shift towards spirit consumption, particularly brandy.
