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In an oversupplied market with rising costs, being a winegrape grower is probably the hardest it has ever been. Natalie Collins, President of the California Association of Winegrape Growers, breaks down the cost of winegrape growing in CA, the challenges in the marketplace, and the policy dynamics in the US, CA, and EU that continue to exacerbate the challenges for CA’s winegrape growers.
Detailed Show Notes:
CA Winegrape Growers - based in Sacramento, lobbies at the state and federal level
Key cost drivers of winegrape growing
Grape pricing not rising w/ input costs - Central Valley ~$500-600/ton, Central Coast ~$1-2k/ton
The annual CA Winegrape Crush Report shows pricing for all varieties by district
US wines can have up to 25% foreign wine blended in and be labeled as US wine
2023-2024 - CA left ~300k tons/year on the vines; 2025 ~50% of vineyards don’t have a contract for the 2025 harvest; industry calling for another 50k acres to be removed (60k removed since 2022); all regions pulling out or mothballing/minimally farming vines
Tariff impacts (May 2025)- input costs increase, but can be positive for CA winegrape growers
Deportations - creating fear, people are afraid to leave their homes for fear of their families getting separated
Seasonal labor is not big, 90% vineyards are mechanically harvested; H2A temporary workers (mostly from Mexico, all-in cost ~$30/hr, often more productive, cannot be paid more than domestic workers)
Economic impact of CA wine - 422k CA employees / 1.1M across US, $73B CA economic impact / $175B/year US
All agriculture is struggling in CA, replacement crops for grapes not easy (some almonds, pistachios, cherries); costs ~$30-70k/acre to plant a vineyard
Duty Drawback - a federal tax refund program meant to encourage exports
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