Grape farm woes worry AgriAmerica chief
Grape farm woes worry AgriAmerica chief
OBSERVER Photos by M.J. Stafford An AgriAmerica truck offloads grapes to the company’s Fredonia processing plant.
AgriAmerica is helping to fill a grape processing shortage in the area with a new program.
OBSERVER Photos by M.J. Stafford An AgriAmerica truck offloads grapes to the company’s Fredonia processing plant.
AgriAmerica is helping to fill a grape processing shortage in the area with a new program.
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AgriAmerica's managing partner sees lower demand and rising costs as two big reasons some local grape growers are hurting.
"It really comes down to supply and demand," said Eric Huddy. "I think it's pretty much common knowledge that the wine market isn't what it used to be. Fewer people are drinking juice. Though there are health benefits to these juices that we feel outweigh the negatives, they still view them as a high sugar drink."
AgriAmerica started a program this fall where they are buying grapes directly from local farmers, instead of just their normal contracted sources. The program was opened in response to Refresco's cancellation of grape processing contracts earlier this year.
However, Huddy pointed out that grape processing capability has declined in this area for years. He noted the end of processing at Fredonia's Carriage House, formerly Red Wing, in 2014.
Grape supply over recent years has been "right up there," Huddy said. "This year, on the other hand, supply was actually down. ... I think everybody's overestimated the supply of grapes out there and underestimated what it takes to fill immediate needs this year."
Huddy noted the pressures facing all of American agriculture, not just grape farmers. Fertilizer, diesel, labor and equipment costs are all soaring. "It's making it harder for farmers across the U.S., including locally in the Dunkirk-Fredonia area, to make ends meet," he said.
Even with lesser supply, the prices paid for grapes this year are "relatively flat, in some cases slightly higher. The cost of grapes isn't keeping up with riding input expenses."
Huddy noted recent government buyouts of juice for school lunch programs, which included a $20 million purchase by the U.S. Department of Agriculture in August. "That's good for local farmers, it certainly uses up some inventory," he said.
"Long-term, it's probably not anything you'd want to base your business plan on."
AgriAmerica's special program this year means it is "staying open longer. We're probably gonna give a home to 2,500 additional tons of grapes," Huddy continued. The company went outside its normal purchasing circles and "It's working out for us and for the farmers," he said.
Huddy called the crop quality this year "exceptionally good," with sugar and acid content both excellent.
He said the problems facing local grape farmers should concern everyone in northern Chautauqua County.
"Historically, this has been a large grape-growing region. It always has been an economic driver in this region. It should be concerning to all of us who live around here," he said.
Huddy noted the "ripple effect" grape farms have. Economic benefits extend beyond the farm -- manufacturers, supply houses, and energy producers all make money off farms.
"When agriculture is uncertain, people aren't quick to buy tractors and pickup trucks and so on," he said.