06/05/07 What Price for the Grape?

What prices for the Grape? I'm Greg Martin with today's Fruit Grower Report. Washington State is the largest grape growing state in the nation but even that distinction hasn't kept the prices up. In fact, the grape industry has been struggling with some of the lowest prices in 20 years. Randy Hageman is the president and general manager for Milne Fruit Products, Inc. in Prosser, Washington who produces 100% natural and pure fruit ingredients from grapes and other fruits. Hageman says competition has been tough. HAGEMAN: The Concord grape industry has competitive items out there and what we saw through the early 2000's, say from around 2001 and on is competitive products out there in the form of red and white concentrate primarily from California and also some off-shore. Hageman says buyers look for less expensive ways to put grape on their label. HAGEMAN: When Concord id on the high end of the price scale and major buyers look at alternative products like red and white selling for 2 or 3 dollars a gallon less, they quickly do the math, they realize they can put grape on their label and save a lot of money at the same time so a lot of them have reduced the amount of Concord going into their formulas for a beverage or confection. So with all the lower prices out there, how is the market shaping up? HAGEMAN: I do the market strengthening and we're seeing that and we're very pleased to see it happening not only for our own business but because of what it might mean to the growers for their grapes this fall. Concord, at this company we are sold out at this time and because of that it kind of bodes well for the supply side of the equation going into this next crop in September. That's today's Fruit Grower Report. I'm Greg Martin on the Northwest Ag Information Network.