Looking Ahead to a Shortage in Premium California Vineyards?

With the 2009 crop being harvested off the vine as I write this first entry of the NorCal Vineyard blog, it is expected that the 2009 crop will be a big one in California. Most wineries have been sitting on the fence this year wondering just how big this crop might be? In 2005 the California vineyard crop hit its largest year on record with 3.76 million tons produced and the 2009 crop may reach $3.5 million tons. Up until a potential larger than average crop in 2009, we have experienced three light crop years in a row which had been a welcomed relief in light of the current economy.

The threat of a large 2009 crop has discouraged most growers and wineries from planting new vineyards, although this may be the perfect time as 80% of California’s vineyards are more than 9 years old, 37% are 17 years and older, with the typical productive life of a vineyard being 20 years. Andy Beckstoffer, Northern California’s largest vineyard grower is also feeling bullish as he just planted 150+ acres in Lake and Mendocino County (Chardonnay and Cabernet Sauvignon).

If you look at any wine sales trajectory charts, you will see that demand will exceed production of California grapes in a few years unless growers expand plantings. This deficiency will likely be met by cheaper imports unless California becomes pro active and quickly starts planting.

I have attached a handout titled “sample costs to establish a vineyard and produce wine grapes” for both Lake County and Napa. The information is very useful for someone considering getting into the vineyard industry and the time may never be better. If you have interest in planting a vineyard or acquiring a vineyard in the wine country, please give us a call.

"Sample costs to establish a vineyard and produce wine grapes" - Lake County

"Sample costs to establish a vineyard and produce wine grapes" - Napa

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