County’s crop value drops for a second year

Sonoma County saw the overall value of agricultural products
drop for a second straight year, with livestock and poultry,
nursery products and field crops leading a $19.3 million drop from
2001’s $584 million total for the 2002 harvest.
According to the Sonoma County Agricultural Commissioner’s
annual crop report released last week — which includes
agricultural sales of everything from Christmas trees to honeybees
— the total value of the county’s crops for 2002 was $565
million.
Wine grapes are still the county’s most valuable crop, both
overall and on a per ton basis. Total wine grape prices rose
slightly, from $370 to $376 million, with a rise in white grape
production accounting for that increase.
The value of the white grape crop climbed from $120.4 million to
$127.2 million. There were 75,322 tons of white grapes, up from
65,872 in 2001, which offset a price drop. Whites sold at an
average of $1,689 per ton, quite a bit less than the $1,828 per ton
for 2001.
Red grape totals were down from $255 million to $250 million,
and sold at an average of $2,320 per ton, down from $2,367 per ton
in 2001. Total red wine grape tonnage was 107,818, very close to
2001’s 107,712.
Cabernet sauvignon again led the reds at a total of $86.9
million for 32,258 tons compared to last year’s $86.8 million for
32,194 tons. In 2001, Cabernet dropped $7 million from 2000. Merlot
again came in second at $57 million for 29,037 tons compared with
$59.5 million for 27,879 tons in 2001. Merlot value had dropped $4
million between 2000 and 2001.
Pinot noir grapes again came in third, despite the overall value
dropping $4.5 million to $41.7 million for 19,571 tons.
Chardonnay dominated the white grape totals at $105.2 million
for 60,844 tons, compared with $100.8 million for 52,853 tons.
Sauvignon blanc came in a distant second at $14.6 million for
9,612 tons, up from 2001’s $12.5 million for 8,267 tons.
All wine grape sales totalled $376.4 million, with sales of
market milk at $76 million and livestock and poultry at $41.8
million trailing far behind.
“Last year we had on average a five percent reduction in
prices,” said Nick Frey, executive director of the Sonoma County
Grape Growers Association. “That’s not too bad. We had a few more
tons of grapes, which led to greater income even with with price
reduction.”
Wine grape acreage increased from 58,364 in 2001 to 59,891 in
2002.
Frey said supply and demand are well-balanced for chardonnay,
merlot and zinfandel with a tighter market for cabernet sauvignon
and pinot noir. Chardonnay from the cooler Russian River and
Carneros appellations are in slightly more demand, he said. He
cautioned against planting any new vineyards or changing over
production to different varietals without firm contracts for the
fruit.
“Some wineries over-bought in ’99 and 2000 and still have
inventory to sell out,” he said. “We need to allow time to allow
market demand to catch up to the supply. We don’t need to add any
more vines.”
Competition from foreign wines, especially Australian wines, is
cutting into the California wine market, he said.
“They’re coming in with a weak dollar, real competitive prices
and a decent quality product for the price,” he said. “Australian
wine is now 25 percent of the California market.”
Olive acreage is now up to 211 acres, 77 bearing and 134 not
bearing, up from 70 acres last year.
Lex McCorvey, executive director of the Sonoma County Farm
Bureau, said many grape growers have seen olives as a way to
diversify their production.
“People are always looking for a new niche market,” he said. “We
see it with some people in the grape industry where they plant some
olives for cured olives and olive oil. It’s compatible with the
wine industry from a culinary point of view. You see the same thing
in some of the dairies introducing other cows, goats and even sheep
to create unique cheeses. To survive in the industry, you have to
carve out that niche market.”
Market milk production increased, but prices dropped, so the
total value dipped from $90.8 million in 2001 to $76 million in
2002, a mark McCorvey called a 30-year low.
“Sonoma County dairies are competing with other dairies, often
foreign, that don’t have the same costs in terms of labor and water
quality,” he said. While some local customers are willing to pay
for responsible agriculture and the increased quality that
stewardship brings, many aren’t, he said.
“When push comes to shove, everyone’s looking to pinch pennies,”
said McCorvey. “That’s human nature.”
While paying to protect the environment is difficult for
farmers, there is help for them, he said.
“The new federal farm bill has allocated money for farm
stewardship programs,” he said. Those programs, administered
through the resource conservation districts, help farmers make
their operations more sustainable.
Truck farm vegetable production has increased with $10,131 in
revenue from 562 acres, up just slightly from $10,119 from 438
acres. Apple acreage increased slightly, from 2,952 to 2,958 acres,
while apple sales shrank from $5.9 million to $4.6 million with
drops across the board in Gravensteins and late, fresh and
processed apples.
Christmas tree production was down from 15,652 trees sold for
$525,900 in 2001 to 13,560 for $505,900 in 2002 — but the price
per tree jumped from $33.60 to $37.31. Beekeepers saw their return
drop for honey, wax and pollination from $112,600 to $104,700.
McCorvey said that while this part of the agriculture cycle may
look bad, Sonoma County’s diversity of soils and microclimates, is
its strength.
“Sonoma County has always had a robust agricultural and farming
community,” he said. “Our farmers have the resourcefulness to adapt
to changing conditions.”
For a copy of the report, contact the agricultural
commissioner’s office at 565-2371, or visit the county web site at
www.sonoma-county.org.