Fruit Snapshot

Each quarter of the year Northwest Farm Credit Services releases their Market Snapshot, a look at what has been happening in the northwest ag industries. Michale Stolp, V.P. Market Research and Development for Northwest Farm Credit Services takes a look at the apple industry.

STOLP: The outlook for the Northwest apple industry is tempered from last season. For 2013-14, the second largest crop in Northwest history is matched with a rebound in the North American apple crop. Average apple prices are expected to decrease. Early season markets are likely to be pressured as Northwest apples impacted by extreme heat, and excess fruit in competing regions, is pushed into the market. As higher quality fruit is pulled from storage in early 2014, prices should rebound from projected season lows. Overall, the Northwest apple industry is anticipated to remain profitable this season, but not to the same degree as last year.

And he takes a look at the wine industry.

STOLP: The quality of 2013's vintage is being reported as exceptional. Improved wine sales in the Northwest are indicative of industry optimism. The overall U.S. industry is profitable, driven by an improved economy, rise in consumer confidence, increase in selling channels, and improved  value relative to price. However, challenges linger concerning market accessibility and off-balanced inventory levels. Due to continued consolidation among distributors, wineries' market access will remain an ongoing challenge, especially for smaller brands. In contrast to near record low inventories leading up to the 2012 harvest, current bulk inventories are high. Spot prices for bulk wines are expected to be soft until inventories are better balanced.

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