California Ag Network

Category: Grape Industry

  • USDA Temporarily Suspends Continuance Referendum Requirement for California Raisins

    The U.S. Department of Agriculture (USDA) is announcing the temporary suspension of the continuance referendum requirement under the federal marketing order regulating the handling of raisins produced from grapes grown in California.

    This action suspends the continuance referendum requirement while USDA conducts formal rulemaking to amend the marketing order. The suspension will remain in place until Nov. 26, 2029.

    The final rule was published in the Federal Register on Jan. 23, 2024. An interim final rule was published in the Federal Register on Oct. 16, 2023. AMS received one comment in support of the rule. Accordingly, no changes were made from the interim final rule to the final rule published.

    More information about the marketing order regulating the handling of raisins produced from grapes grown in California is available on the 989 raisins webpage on the Agricultural Marketing Service (AMS) website.

    Authorized by the Agricultural Marketing Agreement Act of 1937, marketing orders are industry-driven programs that help producers and handlers achieve marketing success by leveraging their own funds to design and execute programs that they would not be able to do individually. AMS provides oversight to fruit, vegetable and specialty crops marketing orders and agreements to help ensure fiscal accountability and program integrity.

  • Public Hearing in February on Proposed Amendments to California Raisins Marketing Order

    The U.S. Department of Agriculture (USDA) announced it will hold a public hearing on proposed amendments to the federal marketing order for California raisins Feb. 13-14, 2024, from 9 a.m. to 5 p.m. PT at the Raisin Administrative Committee offices in Fresno, California.

    The committee, which locally administers the marketing order, recommended the following amendments:

    • Reduce membership from 47 to 21.
    • Eliminate the designated cooperative bargaining association member seat.
    • Lower quorum requirements from 25 to 14.
    • Remove producer district representation.
    • Remove the requirement for separate member and alternate nominations for independent or small cooperative producers.
    • Remove two factors for establishing marketing policy.
    • Add language to clarify the quality of reconditioned raisins.
    • Add authority to accept voluntary contributions.
    • Add language regarding ownership of intellectual property.

    The hearing will continue, if necessary, until all amendments have been addressed. USDA will conduct a producer referendum if the hearing record favors the proposed amendments.

    The hearing will provide all interested persons an opportunity to speak in support of or in opposition to the proposals and for USDA to receive such evidence on the record. People may also file briefs after the hearing, and file exceptions to any recommended decision that may be issued.

    All attendees are required to make a notice of appearance on the record. All persons wishing to submit written material as evidence at the hearing should be prepared to submit multiples copies of such material during the hearing.

    Hearing details:

    Date:               Feb. 13-14, 2024

    Time:              9 a.m. to 5 p.m. PT

    Location:        Raisin Administrative Committee offices

    2445 Capitol Street, Suite 200, Fresno, California

    The hearing notice was published in the Federal Register on Jan. 12, 2024.  Copies may be obtained from Christy Pankey, Marketing Specialist, or Matthew Pavone, Chief, Rulemaking Services Branch, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email: Christy.Pankey@usda.gov or Matthew.Pavone@usda.gov.

    Authorized by the Agricultural Marketing Agreement Act of 1937, marketing orders are industry-driven programs that help producers and handlers achieve marketing success by leveraging their own funds to design and execute programs that they would not be able to do individually. AMS provides oversight to fruit, vegetable and specialty crops marketing orders to ensure fiscal accountability and program integrity.

  • Opportunities to Grow Tree Nut & Wine Exports in Serbia

    Serbia offers good opportunities for the U.S. exporters of consumer-oriented agriculture products. From January-October 2023, total U.S. exports of agriculture products to Serbia reached $22.6 million, an increase of about 16 percent compared to the same period in 2022. The most significant commodities traded were almonds, whiskey, bourbon, tobacco, sweet potato, pistachios, peanuts, vegetable planting seeds, pet food, cranberries, juices and extracts from hops, wine, dietetic foods, concentrated proteins, snacks food, fish, and seafood products. This report provides U.S. food and agriculture exporters with background information and suggestions for entering the Serbian market. The statistical data are as of October 2023.

    The World Bank (WB) ranks Serbia as an upper middle-income economy based on the Gross National Income per capita of the previous year (2023). Serbia is ranked 35th among the 39 countries in Europe. Moreover, the International Monetary Fund projected real GDP change at 2 percent in 2023. The total GDP is projected at $75 billion. Serbia is a developing country with a vibrant agriculture and food industry which contribute to almost 10 percent of total GDP. In 2023, the average annual inflation rate is expected to be 8.5 percent. Serbia has Free Trade Agreements with the European Union (EU), Turkey, and the Eurasian Economic Union (Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan). It is also a signatory to the Central European Free Trade Agreement (CEFTA). January-October 2023 Serbia’s total agri-food exports reached a value of $4.1 billion, a decrease of 8 percent from the same period in 2022. The total agriculture imports in 2022 were valued at $2.9 billion, a decrease of 3 percent compared to the same period in 2022 with a registered $1.2 billion surplus.

    In the January-October 2023 period, agri-food imports were $2.9 billion, a 3 percent decrease compared to the same period in 2022. Over 60 percent of imports come from the EU member states, while 30 percent come from the CEFTA member countries. The total U.S. agri-food exports to Serbia for the January-October 2023 period were valued at $22.6 million, with an increase of about 16 percent compared to 2022. One major obstacle to increasing the U.S. market share in Serbia a is 30 percent customs import tax on most agri-food products, compared to zero import taxes for products from countries with whom Serbia has signed FTAs (about 90 percent of Serbian trade partners). Essential commodities imported from the U.S. include almonds ($4.9M), whiskey bourbon ($3.5), consumer products ($2.6M), pistachios ($2.5M), tobacco ($1.4M), peanuts ($860,000), baby food ($605,000), vegetable seed ($580,000) and hake ($520,000).

    Serbia is the largest agricultural market in the Western Balkans, with strong agricultural production and food processing tradition. Serbia is a global leader in the production of non-GMO corn and raspberries. The food processing industry accounts for approximately one-third of Serbia’s processingindustry. Over 20,000 food businesses are operational, and about 90 percent are micro, small, or medium-sized enterprises. This industry employs more than 120,000 people and is a rare example of a sector that has not been hit adversely by the economic crisis during COVID-19 pandemic. The largest subsectors in Serbia by value are dairy, meat, fruits, vegetables, wine, and confectionery industries.

    Food retail revenue in the Serbian market is approximately $9 billion a year, which represents a relatively small market. Foreign retail chains hold more than 80 percent of the total retail market, mainly divided between Dutch-owned Delhaize (owner of retail chains Maxi and Tempo) and the Croatian Fortenova Group (owner of retail chains Idea, Roda, and Mercator). Other international retail chains include Germany’s Metro, Lidl, and Greece’s Super Vero. Domestic retail chains represent only some 20 percent of the Serbian market: Dis, Univerexport, and Gomex. More than 50 percent of all food products are still sold through small grocery shops (estimated to number close to 30,000). Due to significant changes in consumer behavior during the COVID-19 pandemic, online retail increased by almost 600 percent since March 2020. Delivery services also expanded their business in Serbia by more than 400 percent over the past 3 years.

    Economic Situation

    The Serbian economy is rebounding from last year’s energy price shocks, despite continuing adverse economic conditions both regionally and globally. Economic growth is expected to reach 2 percent in 2023, increasing to 3 percent in 2024 as domestic demand recovers. Unemployment is at an all-time low. Inflation rose to 16 percent in February 2023, which was slightly higher than expected, led by higher food and energy prices. Average inflation in 2023 is expected to be 8.5 percent mostly driven by cost-push pressures. Additional challenges include the performance of the Serbian energy sector and the availability of electricity and gas in the winter of 2024, as well as the rising cost of financing the fiscal deficit and debt obligations considering higher interest rates. With limited space for future stimulus packages, structural reforms are needed to bring the economy back to sustained and growth, boost jobs and incomes. Currently, almost 60 percent of the population’s income is spent on food it is expected to be even more during 2024.

    Serbia needs to make further changes to its regulatory policy, mainly in accordance with the 2023 European Commission (E.C.) Annual Progress Report for Serbia published on November 8, 2023, https://neighbourhood-enlargement.ec.europa.eu/serbia-report-2023_en. According to the report Serbia made limited progress overall. The capacity to pursue key challenges in trade policy needs to be strengthened, to move forward with accession to the World Trade Organization (WTO), where again no progress was made. In October 2023, Serbia provided an updated list of actions to be taken in the context of the WTO accession process as part of the action plan on its remaining legislative alignment with the EU acquis. In the coming year, Serbia should adopt a WTO-compliant law on genetically modified organisms, to move forward with remaining bilateral market access negotiations and towards finalization of its accession to the WTO.

    Overall Business Climate

    Serbia is an open economy with a strategic geographic location that makes it an attractive destination for investment and exports. Serbia has easy access to both EU and non-EU markets, a highly skilled and educated force, and solid infrastructure that has led many global companies to establish manufacturing and service facilities (see Serbia’s Country Commercial Guide https://www.trade.gov/country- commercial-guides/serbia-market-overview?section-nav=5477 ).

    Recent Trends

    The local and regional media frequently publish articles detailing consumers perceived (and actual) discrepancies in the quality of identically branded food products sold in Western Europe and Serbia. Concerns about ingredients and lower quality also have a strong influence on buyers’ confidence in imported products. This “dual ingredient” issue is common in Central and Eastern European countries. Most consumers have adjusted their eating habits and diet for health reasons, increasing health consciousness. Price remains the most important factor affecting purchasing decisions.

    Serbian consumers are increasingly purchasing online especially cross-border retail for lower prices and this segment is expected to grow at an annual average rate of over 10 percent over the course of the next five years. Currently, e-commerce is 5 percent of total retail turnover at about $500 million a year with 2.9 million online shoppers. The number of shoppers is expected to increase to 3.9 million by the end of 2024. Read the full report from USDA Foreign Ag Service HERE.

  • Legislation Introduced to Extend Pierce’s Disease Control Program

    Last week, Assemblywoman Dawn Addis, (D-Morro Bay) introduced AB 1861 to extend a vital program within the California Department of Food and Agriculture (CDFA) that protects California’s picturesque vineyards and our iconic wine industry from deadly disease. This legislation is sponsored by the California Association of Winegrape Growers and Wine Institute.

    “The wine industry is integral to the economic success of the Central Coast and all of California,” said Addis. “I’m proud to author AB 1861 that extends a crucial line of defense for our wine industry against invasive disease. We have a track record of collaboration among State, local, federal government and the industry itself when it comes to battling Pierce’s Disease and the Glassy Winged Sharp Shooter. I’m proud to extend this collaboration and to be part of the on-going success of California’s wine regions.”

    “Over the last 23 years, the Pierce’s Disease Control Program has been fundamental in addressing the challenges posed by Pierce’s Disease and other pests and diseases,” said Natalie Collins, President of the California Association of Winegrape Growers. “We thank Assemblymember Addis for her leadership in authoring this important legislation.”

    “Our collaboration with California’s Department of Food and Agriculture continues to protect our vineyards against Pierce’s Disease and the Glassy-Winged Sharpshooter,” said Robert P. Koch, President and CEO of Wine Institute. “AB 1861 will extend critical research, innovation, and mitigation and prevention efforts to safeguard the health and vitality of our winegrapes against this invasive species. We are grateful for the support of Assemblymember Addis and the California legislature.”

    California’s wine industry stands as a formidable economic force, contributing significantly to the state’s prosperity. California leads the nation in wine production, producing 80 percent of all U.S. wine and generating a staggering $170.5 billion in annual economic activity. With 615,000 acres of winegrapes producing 3.6 million tons, California’s commitment to sustainability shines through, with eighty percent of its wine produced in certified sustainable wineries.

    Growers are all too familiar with the significant threat posed to vineyards by Pierce’s Disease (PD), carried between plants by an insect called the glassy-winged sharpshooter (GWSS). Since the 1990s, GWSS has been one of the most invasive and deadly pests for vineyards. When a vine develops PD, its ability to draw in moisture is hindered and the plant will either die or become unproductive. PD has caused millions of dollars in damage throughout the state.

    To safeguard California’s wine industry and support ongoing research, inspection, and control measures for PD, AB 1861 will extend the Pierce’s Disease Control Program (program) and the PD/GWSS Board from 2026 to 2031. This extension is subject to approval of growers through a

    referendum that would be conducted in 2025. The last PD/GWSS referendum, conducted in 2020, passed with 78 percent approval of California winegrape growers.

    California’s first indication of a severe threat posed by this disease occurred in Temecula in August of 1999, when more than 300 acres of vineyards were infected with PD and had to be destroyed. In response, the Legislature enacted a legislative package that year creating the advisory task force. In 2001, the program was created to fight the spread and find solutions for PD and GWSS.

    The program has demonstrated success in controlling the spread of PD and GWSS due to the collaborative efforts involving federal, state, and local agencies, along with grower-funded research. The program is funded through a combination of federal and industry funds, as well as grape grower assessments. These assessment funds are used for research, outreach, and related activities on PD, GWSS, and other designated pests and diseases of winegrapes.

    The research overseen by the PD/GWSS Board is critical to advancing knowledge, improving practices, and guaranteeing the longevity of the California winegrape industry. The focus of current research projects ranges from investigating pests and diseases to evaluating existing control methods to exploring new promising control strategies.

  • Global Bulk Wine Market Challenges to Navigate

    Watch this brief interview with Turrentine Brokerage bulk wine broker Marc Cuneo following his State of the Industry report at Malcolm Media’s Tree & Vine Expo on what’s going on in the bulk wine market and the challenges that lay ahead. Read the State of the California grape industry reports in the January and upcoming issues of American Vineyard Magazine.

  • Waning Demand Concerning Future of the Wine Industry

    At Malcolm Media’s recent Grape, Nut & Tree Fruit Expo, Allied Grape Growers’ Jeff Bitter delivered a State of the Wine & Grape Concentrate Industry report, that left attendees concerned about the near future of the wine industry. Predicting an imminent market correction that will impact most in the industry, watch his interview and read more about it in American Vineyard Magazine.

  • Turrentine Brokerage Reflects on Challenging 2023 Vintage (CA Northern Interior)

    Like many other vineyards in the state, Lodi and the the Northern Interior of California were severely impacted by mildew pressure in 2023. This contributed to significant crop losses, lowering the overall wine grape crush. Watch this brief interview with Mike Needham from Turrentine Brokerage following his State of the Industry report at Malcolm Media’s Tree & Vine Expo.

  • California Association of Winegrape Growers Promotes Mindy DeRohan

    The California Association of Winegrape Growers (CAWG) is pleased to announce Mindy DeRohan’s promotion to Manager of Membership and Communications.

    Previously serving as CAWG’s Communications Manager, DeRohan will now oversee member relations while continuing to lead communication strategies.

    Natalie Collins, CAWG President, expressed excitement, stating, “Mindy has been a valuable asset to CAWG, and we are thrilled to see her take on this expanded role. The integration of communications and membership management under her leadership will undoubtedly enhance our association.”

    Collins emphasized, “Mindy’s background equips her to fortify member relations, ensuring optimal support and engagement for our growers and business members.” With a decade of experience in agriculture and communications, DeRohan is well-prepared to contribute significantly to CAWG’s mission of delivering value to its members and stakeholders.

    Before joining CAWG, DeRohan held roles as the Program Manager for the California Foundation for Agriculture in the Classroom and as the Manager of the CAPCA ED Continuing Education Program for the California Association of Pest Control Advisors.

    DeRohan, a Cal Poly, San Luis Obispo alumna, holds a Bachelor of Science in Agricultural Science and a Master of Science in Agricultural Business. She is also a 2016 graduate of the Leadership Farm Bureau program.

  • Research Identifies Traits That Could Advance Grape Breeding, Sustainability

    Wild North American grapes are now less of a mystery after an international team of researchers led by the University of California, Davis, decoded and catalogued the genetic diversity of nine species of this valuable wine crop.

    The research, published in the journal Genome Biology, uncovers critical traits that could accelerate grape breeding efforts, particularly in tackling challenges like climate change, saline environments and drought.

    “This research marks a significant step in understanding the genetics of grapevines,” said Dario Cantù, the senior author on the journal article and a professor in the Department of Viticulture and Enology. “It lays the groundwork for future advancements in grape breeding by identifying key genes responsible for important traits.”

    The research team developed and used state-of-the-art technology to construct a comprehensive pangenome, which is a complete genetic blueprint, of wild grape species.

    This so-called super-pangenome of nine species allowed the team to map genetic diversity, identify similarities or differences among them, and pinpoint specific traits that breeders may want to incorporate. First author Noé Cochetel, a postdoctoral researcher in Cantù’s lab, did the analyses and played a pivotal role in the project.

    It is the first North American wild grape pangenome to be mapped and catalogued, Cantù said.

    “This offers tremendous potential for advancing sustainable grape cultivation, especially in regions facing water scarcity challenges,” said Cantù, a plant biologist who also holds the Louis P. Martini Endowed chair. “This pangenome will enable further genetic exploration of other vital adaptive traits, essential for industry resilience, like drought tolerance, heat resistance and defense against Pierce’s disease.”

    Caused by a strain of the bacterium Xylella fastidiosa, Pierce’s disease kills grapevines by clogging their water-conducting vessels.

    Wild grape pros and cons

    North American grapes are known for their resistance to disease and adaptability, but they are not favored for taste and wine quality. European grapevines like chardonnay and cabernet sauvignon are less resistant to diseases but are renowned for producing high-quality wines.

    North American species have a wide geographic range. As a consequence, they have evolved to withstand diverse climatic, soil and pathogen conditions, encompassing a broad spectrum of genetic diversity.

    That is why nearly all wine grapes produced worldwide are from European vines grafted onto North American rootstocks.

    Ability to select traits

    The detailed pangenome will empower breeders to selectively incorporate desired traits from wild grapes, such as salt tolerance, while avoiding less desirable characteristics.

    “Salt tolerance is a crucial trait for rootstocks,” Cantù noted. “Identifying these traits at a genetic level is a major advancement for grape breeding.”

    Andrea Minio, Jadran F. Garcia, Rosa Figueroa-Balderas and Mélanie Massonnet from UC Davis contributed to the research, as did experts from Cornell University, UC Irvine, University of Tennessee Health Science Center, U.S. Department of Agriculture’s Agricultural Research Service and Human Technopole in Italy.

    Funding from the National Science Foundation, the E&J Gallo Winery and Louis P. Martini Endowment in Viticulture supported the research. The UC Davis Genome Center, of which Cantù is a member, performed sequencing. — By Emily C. Dooley, UC Davis

  • CAWG Awarded CalAgPlate Grant for Owl Box Construction

    The California Association of Winegrape Growers (CAWG) is excited to announce the receipt of a $9,908 grant from the 2023 California License Plate (CalAgPlate) program, administered by the California Department of Food and Agriculture (CDFA). This grant aims to elevate agricultural education and leadership opportunities for both students and teachers throughout California.

    The grant project, aptly named “Creating a Sustainable Future: Owl Box Construction for Hands-On Agricultural Learning,” will empower FFA students with a unique hands-on experience in constructing 200 owl boxes. These purpose-built boxes will be distributed to winegrape growers as part of CAWG’s upcoming 50th-anniversary celebration in November 2024. Beyond the celebratory aspect, the grant presents FFA students with a valuable opportunity to contribute to practical solutions for sustainable agriculture.

    Through this engaging project, students will not only gain woodworking experience but will also delve into essential aspects of agriculture, including the role of biodiversity, pest management strategies, and the critical importance of preserving natural ecosystems. The educational components seamlessly align with FFA’s overarching mission to nurture and develop young agricultural leaders.

    Natalie Collins, President of CAWG, shared her enthusiasm for the grant, stating, “This project is truly exciting for both CAWG and California’s FFA students. It introduces solutions that promote hands-on learning and contribute to environmental stewardship, cultivating collaboration between our association and the future stewards of our industry in FFA. It’s a win-win that propels us toward a greener and more resilient viticultural landscape.”

    This project was one of only four applications selected for funding in 2023. The funding for the CalAgPlate program is derived from the sales of specialized license plates with an agricultural theme, through the California Department of Motor Vehicles. Since the initiation of the CalAgPlate grant program, CDFA has awarded more than $2 million to foster agricultural education and leadership development.