California’s wine industry is facing a significant challenge with the smallest red grape harvest in over two decades. The 2024 grape crush report, released by the California Department of Food and Agriculture, reveals that up to 30% of red wine grapes may have been left unharvested. This marks the smallest overall grape crush since 2004 and the smallest red grape crush since 1999. While white grapes were generally picked, many red grapes without contracts remained on the vine.
Glenn Proctor from The Ciatti Company noted that most white grapes were harvested, even at low prices, while red grapes were often left unpicked. The total wine grape crush amounted to 2.84 million tons, a 22.8% decrease from 2023. Napa Valley saw a 16.5% drop in red grape volume and a 15.5% decrease in white grapes. Despite this, Napa Cabernet prices remained relatively stable, with only a 2% decrease in average price per ton.
The disparity between red and white grape harvesting was evident across various regions. Sonoma County, with twice as many red grapes as white, experienced an 18.3% decline in red grape harvest, while white grapes were down 8.8%. Mendocino County, known for Anderson Valley Pinot Noir, saw a 27% drop in red grapes but a 2.2% increase in white grapes, one of the few regions with a larger white grape crop.
The small red grape harvest can be attributed to a heat spike in October, which primarily affected red grapes as most white grapes had already been picked. The red grape crush decreased by 27% from 2023, while the white grape crush was down 18%. Last year’s white grape crush was the smallest since 2008, despite having more white grapevines now.
Steve Fredricks, president of Turrentine Brokerage, explained that the heat reduced yield per acre, but this might benefit the wine industry overall. With Americans buying less wine in 2024, wineries and distributors are dealing with excess inventory. A smaller harvest could help balance the oversupply from previous years.
The report highlights several regional impacts. Region 13, including Fresno and Madera counties, had the largest white grape harvest, down only 3.5% from 2023, while red grapes fell by 22.1%. Monterey and San Benito counties saw white grapes drop 25.3% and red grapes 33.1%. The Central Coast, including Santa Barbara and San Luis Obispo counties, experienced even larger declines, with white grapes down 34.2% and red grapes down 42.3%. Lodi’s white harvest decreased by 23.4% and reds by 25.1%. Kern County’s red grape harvest plummeted by 48.4%.
Despite the demand for white grapes, farmers did not see increased profits. The average price per ton for major white varieties like Chardonnay, Sauvignon Blanc, and Pinot Grigio dropped slightly. Prices for rare white varieties such as Cortese, Falanghina, and Marsanne fell by about half. Cabernet Sauvignon, despite being in oversupply, saw a 1.8% increase in average price.
Fredricks noted that most grapes picked were contracted, and there was little demand for bulk wine. This situation might prompt farmers to consider switching from red to white grapes. However, white grapes averaged $699 per ton, down 4.8% from 2023, while harvested red grapes sold for nearly twice as much at $1311 per ton, down 2.6%.
Overall, the smaller crop size could be beneficial for the California wine industry by addressing the oversupply issue. However, it poses challenges for growers in terms of financial returns. The industry still faces the task of encouraging more wine consumption to resolve its supply-demand imbalance.