FRESNO, Calif. (KMJ/KFSN) — Many in the ag industry worry the Trump administration’s tariffs could result in the loss of some overseas markets.
Jeff Bitter of Allied Grape Growers says local winegrape producers don’t share the same concerns as other farmers when it comes to the proposed tariffs.
“For California growers, the tariff issue isn’t as big a concern as in general production agriculture because most of the wine produced in California is actually shipped domestically,” he said.
Allied Grape Growers is a cooperative marketing group that represents 500 growers around the state.
Bitter says just 10% of the state’s winegrape production gets shipped out of the country.
Wine drinkers might give more California wines a try if selections from France and other countries see a price spike as a result of tariffs.
“Potentially, it could cause some wines to become higher in price, import wines, so people might look to domestic options instead,” Bitter said.
Wine consumption, though, has dipped since the pandemic.
We have seen some Valley winegrape growers pull out their vines because of the decreased demand.
Bitter says the California wine industry overall needs to reduce acreage so growers can get a better price for their crop.
“Last year, we removed about 37,500 acres,” he said. “In the last two years, we removed about 60,000 acres, which is about four times the size of Manhattan.”
The trend might continue.
Bitter adds more than 400,000 thousand tons of grapes did not get harvested last year because there was not a market for the crop.
Bitter was recently in Washington, DC, to talk about the industry’s support of tariffs to help ensure California wines are not undercut by cheaper imports.
