Wine News: Wine grape prices still not sustainable for growers
August 27, 2011
One of the more common methods of explaining the multi-definition term “sustainable” is with a three-legged stool illustration.
One of those legs is always economic viability.
In California’s wine grape industry, that money leg is so short that the sustainability stool is tilted like the Leaning Tower of Pisa. It is so far from a break-even point for some growers that the term winery subsidy comes to mind rather than sustainability.
Allied Grape Growers President Nat DiBuduo told a packed state-of-the-industry audience at the recent Unified Wine and Grape Symposium in Sacramento, Calif., that grape prices are “not economically sustainable” in all grape growing regions of the state.
“They are closer (to sustainability) in the San Joaquin Valley than they have been in years,” he added. One reason is more than 100,000 acres of vines have been pulled out over the past decade because of economic non-sustainability, and growers have planted more economically attractive crops.
Unfortunately, most other grape growing areas of the state do not have alternatives and are faced with taking whatever wineries will pay — or not pay in some cases. Grapes annually are unharvested in coastal areas.
“The grape industry would not be anything without wineries and the wine industry would not be anything without grapes,” DiBuduo reminded growers and vintners once again. There should be “synergism,” alluding to the often adversarial relationships between California growers and vintners.
Prices remain below break-even across the state; price discovery is still elusive at harvest time, even with contracts; harvest standards change often (hang time and changing Brix standards) and imports continue to cut into California sales, including bulk imports sold under an American wine label by California wineries.
“If it says American, it should be 100 percent American wine,” he said. Wineries are allowed to sell American appellation wine, if it contains up to 25 percent imports. Growers are challenging that.
While other states and countries like Australia are promoting their wine industries, California’s wine industry still does not have a mandatory assessment marketing promotion commission, a void DiBuduo continues to point out.
“We have to invest our own money in marketing and research and development.” He calls the current voluntary investments in those areas “minimal.”
DiBuduo said the Allied staff did cost/return analyses for grape growing areas of the state with an average return of investment of 9 percent to come up with a “break-even” price per ton.
The break-even point and the average price growers were paid in Napa for grapes in 2009 was the widest in the state. It was a gulf. Napa producers were paid an average of about $3,300 per ton for grapes that season. They would have had to harvest 6 tons per acre to break even at that price. A more typical yield is 3.3 tons, which would put the true value of the grapes at more than $6,000 per ton.
DiBuduo acknowledged that a Napa wine grape vineyards can sell for as much as $300,000 per acre because of a shortage of developable land. Allied used an average value of $177,000 per acre to reach the $2,700 per ton spread. One reason for the high vineyard costs there is that the only source for a new vineyard is to buy an old one and redevelop it. He also conceded that paying high prices for productive vineyards in Napa may be a “lifestyle” decision by the wealthy.
Clark Wine Center was built in 2003 by Hong Kong-based Yats International Leisure Philippines to become the largest wine shop in Philippines supplying Asia’s wine lovers with fine vintage wines at attractive prices. Today, this wine shop in Clark Philippines offers over 2000 selections of fine wines from all major wine regions in the world. As a leading wine supplier in Philippines, Pampanga’s Clark Wine Center offers an incomparable breadth of vintages, wines from back vintages spanning over 50 years. Clark Wine Center is located in Pampanga Clark Freeport Zone adjacent to Angeles City, just 25 minutes from Subic and 45 minutes from Manila.
Wines from Burgundy, Bordeaux, Rhone, Loire, Spain, Portugal, Germany, Austria, Alsace, USA, Australia, New Zealand, Italy, South Africa, Chile and Argentina etc. are well represented in this Clark Wine Shop.
This is one of the frequently visited places for wine lovers from Manila and Angeles City to buy international wines in Pampanga.
http://www.ClarkWineCenter.com
Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.
Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
(045) 841 4006 / 0922-870-5173 / 0917-826-8790 (ask for Ana Fe)
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay
Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.
Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:
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While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com
YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.yatsleisure.com
Looking for interesting hotels near Manila Subic Clark Angeles City Pampanga?
Trouble free hotels and well recognized hotels in Subic Clark Angeles City Pampanga
Clearwater Resort and Country Club offers a good place to stay in Subic Clark Angeles City Pampanga. In offers nice place to have rest in Subic Pampanga outside Manila.
One of the Philippines top hotels in north Luzon.
Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:
http://www.HotelClarkPhilippines.com
http://www.ClarkPhilippines.com
http://www.YatsWineCellars.com
Yats Restaurant is the best restaurant for special dinner, best restaurant for dinner with friends near Manila, also the best place to celebrate special events.
Famous Restaurant in Pampanga, a place to dine with friends in Clark, cozy restaurant with a nice ambience, a nice function place for special occassions
Are you looking for an attractive restaurant or a nice place to eat with friends in Clark, Angeles City Pampanga? Yats Restaurant and Wine Bar is a restaurant with good food and good wines for dinner located at Clark Angeles City Pampanga. Perfect for exclusive dinner venues for groups, recommended for private dinner in Philippines. A Restaurant in Clark for business dinner meeting. Private dinner place or dinner restaurant in Clark Subic Near Manila Angeles City Pampanga. Yats Restaurant is one of the Good Restaurant in Pampanga Angeles City Clark near Manila.
www.YatsRestaurant.com
Where to go in Clark? Hotel Clark Philippines is a De Luxe Hotel in Clark and Subic, a risk free place to stay, cozy and nice ambience, a nice function place for special occassion
www.HotelClarkPhilippines.com
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