NWFCS: 2019 Could Be A Down Year For Cherry, Grape Growers

As we continue our 2019 Northwest Farm Credit Services Quarterly Commodity Snapshot, we take a look today at wine grapes and cherries.  Bill Perry NWFCS’s EVP of Lending and Insurance said cherry growers could see compressed returns if Chinese tariffs remain in place for the 2019 season.

“Northwest FCS predicts early and late season cherries will capture higher returns due to lower supply. However, supply gluts are anticipated mid-season, which will subdue producer returns.”

When looking at wine, Perry said their 12-month outlook calls for profitable wineries and slightly profitable vineyards.

“As more consumers reduce their alcohol consumption and turn to substitute beverages, growth in wine consumption is slowing. Still, consumers continue to trade quantity for quality, which is increasing the value of wine sales. Increased labor costs and abundant grape supplies challenge the vineyard industry,” Perry noted.

Join us Wednesday as we turn our attention to apples and pears.

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