8-2 IAT Cherries and Wine

 Emmet’s cherries took a hit this year but what about the rest of Idaho?Every quarter I call Michael Stolp, who is V.P. Market Research and Development for Northwest Farm Credit Services is kind enough to provide us with his quarterly Market Snapshots. Today it’s cherries and wine. 

 Cherries -- The Northwest cherry season is off to a rough start. Heavy and persisting rains throughout May and June caused widespread harvest disruptions and substantial crop damage. Reports from impacted orchards range from spotty damage to total losses. The level of profitability for cherry growers is uncertain this year. The high cost of rain damage control and field sorting, along with crop losses will pressure early season growers’ margins. Mid-season producers generally see price declines during peak harvest, and the heat wave in Eastern Washington through the July Fourth  week will take an additional toll on the crop. Late season harvest volumes are expected to be lighter than usual, which should provide some price support.

Wine/Vineyard -- The outlook for the Northwest wine and vineyard industries is generally positive for 2013. An early spring and warm weather conditions throughout Washington and Oregon hint at the possibility of another strong crop year, although rainy weather in Washington has presented some challenges in crop management. While the wine supply gap in California is narrowing, enough of a shortage remains to boost grape prices. Northwest wineries report optimistic sales growth for the first part of 2013. Although increasing wine sales suggest an improving economy, some uncertainty and volatility continues to linger in the marketplace.