Newsletter No. 29 - March 2003

NEWSLETTER NO. 29 - March 2003

            This is a report on the Concord grape industrial market. If you have no interest in that, please check our Ingredient Listing on page 4. In addition to handling Concord products, WE SPECIALIZE IN ALL FRUIT JUICES, CONCENTRATES, PUREES, ESSENCES AND FROZEN FRUITS.

 The USDA reports that the 2002 U.S. Concord grape crop totaled 383,800 tons, 10% more than last year and 5% less than the past 5 year average.

            In the Eastern production areas, there was considerable concern during the growing season that the crop had been severely reduced due to April frost losses. Some growers did suffer severe losses but a better than average set (number of berries per cluster) and good berry weight, offset much of the frost damage for most growers.

             Even with August prospects for a short crop, New York juice processors reduced the prices they paid their growers, with the average dropping from $263/ton in 2001 to $235. A major cooperative supplier of Concord concentrate, announced to its members they would have to allocate and not take a % of their crops; amounting to several thousand tons. Some were absorbed by other processors at their posted prices, many tons were sold at distress prices (under $100/ton) and a % was left unharvested.         

            Washington processors, recognizing their crop was above average and the Concord market was soft, reduced their prices to their growers from $218 in 2001 to $150.

            The industrial Concord market is in turmoil because of reduction in sales and the high carryover inventory from the short 2001 crop. The market has lost very substantial percentages of its sales volume due to their customers switching to, or blending heavier with, California and South American Red and White Grape concentrates, which are being offered at very low surplus prices.

            Because of substantial marketing programs being conducted by two processors and growing public awareness that Concord grape juice is good for heart health, the retail side of the Concord market seems to be doing well. The industrial portion is struggling, due to the competition from California. Tens of thousands of acres of vineyards are being removed there but it will take awhile longer before the demand for Concord is expected to increase.

            All U.S. production areas report no serious winter injury, so prospects for the 2003 crop are average, or above, at this time.

            ONTARIO – Their 2002 crop was down 23% from last year.

            BRAZIL – Harvest of the 2003 crop was completed this month and it is estimated to be 20-30% smaller than last year. Excess rainfall also reduced the Isabella and other variety crops.

Did you know?
We estimate that about 2/3 of the Concord crop is used by branded or private label packers and the balance, or about 130,000 tons per year, are sold in the industrial market as bulk juice or concentrate. The average annual tonnage of California’s grape crop utilized for red and white grape concentrates is approximately 700,000 tons. In 2002, prices paid growers for concentrate grapes were in the range of $65-100/ton. Stiff competition for Concords!

Please check our listings on page 4 and call us for quotations on any of your product requirements or products for sale.

WE ARE NOW OFFERING CHINESE FROZEN STRAWBERRIES AND STRAWBERRY CONCENTRATE. PLEASE CALL US ABOUT THESE.

U.S. Concord Production % of Total by Area - 2002 NY-PA-OH and Michigan fell due to freeze losses while Washington’s crop was above average.	U.S. Concord SupplyCurrent Crop & Carryover 1998 - 2002 The supply from the 2002 crop, including carry over from the previous crop, is at about the past 5 year average but inventories are building.
U.S. Concord Grape Prices Cash Buyers - Juice Industry 1998-2002 Prices paid growers by independent processors dropped 11% in the East and dropped 31% in the West.	Prices of 68° Brix Concord Concentrate at Start of Pack 1998-2002 Opening prices, December following harvest, are for single truckloads of drums. Prices have dropped since December and continue their slide due to stiff competition from Red and White concentrates.

We also handle the following fruits and berries as concentrates, purees and frozen. Many are available as single strength juices.

We can supply many of the above products certified organic and also Kosher. If you are looking for products in our line, which are not listed, please call us.

Grape & Fruit Essences
We have several sources of Concord and Niagara essences priced from $12.00 to $24.00 per gallon. We also can source essences of many of the fruits listed above; both standard and high fold.

PLEASE CALL US FOR FURTHER INFORMATION OR SAMPLES.

Herb or Van Barber

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