5-2 IAT Grapes n Apples

 Michael Stolp who is vice president of market research and development for Northwest Farm Credit Services weighs in on grapes and apples.

“Apples -- Good prices, strong demand, and record sales supported by a short Northern Hemisphere crop suggest that Northwest apple growers can generally expect strong returns for the 2012/13 crop. Looking ahead, the Northwest apple industry will test its ability to market record-size crops without the benefit of production shortfalls in the rest of the world. Increasingly large Northwest crops coupled with a rebound in production in the U.S. East and Midwest could oversupply the market. Growers are positioning for the future by paying off short term debt, investing in efficiency boosting technologies, and retaining profits as working capital. Labor costs and availability are expected to remain challenges.

Wine/Vineyard -- Wine grape prices generally increased during 2012, a trend the industry expects will continue in 2013. To date, growing conditions in Oregon and Washington have been favorable for the 2013 crop, resulting in positive expectations for production and crush volume. Colder conditions in Idaho leave some uncertainty about winter damage, but overall conditions are positive. Domestic demand for wine continues to be robust. Recent long-term investments in Northwest wine production assets by major industry players signals belief in the Northwest as a key region for wine grape and wine production.”