Tuesday, September 16, 2003

A short crop--growing shorter....
Looking around the states wine grape producing regions, the crop is light. As the harvest progresses, this light crop is turning out increasingly short of most forecasts and revisions.
The implications are a boomerang effect in the market place. Some varieties are persisently long and will need a couple of more years to re-balance, however with consumption growth continuing at a steady pace, removals, unfarmed and under-farmed acreage, a weakening dollar and rising demand in the global marketplace, California could find itself in tight supply situations within the next year.

It does not take much imagination to see that some progress on the double digit growth of the imports, by domestic producers could snap this economic picture for wine grapes back into focus.

Watch for more...

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