2-12 IAT Wine & Lumber

 The last  look at market snapshots.

 Last week we ran a series of snapshot looks at various segments of  Northwest agriculture from Michael Stolp, VP-Market Research and Development  for Northwest Farm Credit Services  over in Spokane.  Today we finish up by looking at  the wine and lumber  industries.

Wine/Vineyard -- The 2012 Northwest grape harvest concluded in November. Favorable growing conditions across the Northwest resulted in one of the best vintages ever in terms of quality. Grape growers saw a record harvest and very good quality. California also experienced strong production and quality, but bulk wine supplies in the state remain tight, limited by poor harvests from previous years. The outlook for Northwest grape growers and wineries is good, supported by increasing wine sales, bulk wine shortages in California, and an expected global wine shortage in 2013.

Forest Products -- Improvement in the housing market contributed to higher domestic lumber demand that drove increased lumber production and imports during the second half of 2012. Mills generally enjoyed stronger profit margins on improved lumber prices and log prices that remained at or below 2011 levels for most of 2012. Log prices were pressured upward late in the year due to higher demand from mills and a spike in log exports. Recent log price increases may represent a trend that continues into 2013. Industry dynamics are expected to remain volatile pending a sustained recovery in the U.S. housing market