Demand Wasn’t There for 2017 Cherry Crop
As we continue our look at Northwest Farm Credit Service’s 4th quarter outlook report, we turn our attention to cherries and wine grapes. Karen Witt, NWFCS Vice Presidents says 2017 was a an exceptional year for cherry growers, at least on the production end. She says unfortunately consumer demand wasn’t there this season.
“Northwest Farm Credit Services profitability outlook shows slight profits for cherries marketed before the 4th of July. However, cherries marketed after the holiday returned below breakeven margins.”
Cherry crop sizes are volatile from year to year, since weather events can significantly reduce marketable cherry volume. However, planted cherry acreage and cherry crops have increased over the last 30 years, and 1,114 cherry acres were planted in 2016.
When looking at wine grapes, Witt says the 2017 Washington harvest was abundant, with estimates just below last year’s record crop. That decrease is due to smaller fruit clusters. Meanwhile in Oregon, the harvest is estimate is 5%-10% largest than last year.“Wine sales, especially for direct to consumer segments remain strong, and Northwest Farm Credit Services’ profitably outlook indicates robust profits.”
Witt adds the recently approved Tax Reform bill is good news for wineries, generating tax rebates on the first 750,000 gallons produced.
If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com
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