As we start the second half of our Northwest Farm Credit Services quarterly commodity snapshot series, today we focus on the wine and cherry industries.  Bill Perry, Vice President at NWFCS, said their 12-month outlooks calls for breakeven conditions for Northwest cherry growers.

“Prolonged cool and wet weather, in addition to hailstorms, will significantly reduce the 2022 crop and raise breakeven prices at a time when high inflation is reducing consumers’ discretionary income. Those with sufficient crops will enjoy strong returns while others will struggle. Rising input and transportation costs will pressure margins.​​​​​​​”

Meanwhile, Perry says the outlook calls for profits for both vineyards and wineries.

“Multiple years of short crops should keep grape prices elevated. Unseasonably cool and wet weather may reduce yields and lead to frost damage in certain locations, but overall impact appears minimal in Washington and remains unclear in Oregon. Consumers continue to spend more per bottle of wine, but high inflation may limit this trend. Rising input and transportation costs remain a challenge.”

Join us Monday as our snapshot series continues with fisheries, forestry and nursery products.

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