NEWSLETTER NO. 30 - March 2004

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

There is a substantial development affecting the industrial Concord market.California has, for the past 3 years, had serious surpluses of grapes,caused by over planting and by big crops.Large quantities were dumped into the concentrate market and resulted in very low prices for Red and White Grape concentrates.The low prices drew many buyers away from purchasing flavorful Concord juice and concentrate to purchasing the bland and lower colored California vinifera concentrates.

California is now essentially sold out of both Red and White Grape concentrates and what little may be available, has jumped dramatically in price.The reasons? It is estimated that over 100,000 acres of vineyards were removed because the growers were not making a profit.The 2003 crop was about 11% less than last year and 2 of the major processors of grape concentrates did not produce any for the industrial market last fall; one was bankrupt/one was unprofitable.The tons of ’03 grapes processed for concentrate declined by 245,418 tons or 33% from 2002.We don’t expect to see super low prices from there for some time to come.

Argentina and Chile are now harvesting their vinifera crops. Pricing of both Red and White concentrates are being quoted from 20-35% higher than last year and expected to increase.We expect them to be sold out quickly, forcing many manufacturers of products using red grape concentrate to take another look at Concord juice and concentrates.

Brazil is nearing the end of harvesting their Concords and Isabellas.The crop is reported to be about average in size.Prices of their concentrates are currently about the same as last year.

Washington State produced an above average Concord crop of very good quality with high brix. Concentrate is being shipped East to blend with the Eastern juice to improve their quality.

DID YOU KNOW?

The Eastern Concord growers (NY/PA/OH/MI/ONT) suffered a major disaster in ‘03, probably the worst that the industry has ever seen.Following two fairly short crops in 2001 and 2002, the grapevines set well above average yields per acre.A cool, rainy, growing season did not allow the grapes to mature properly.A large percentage of growers, recognizing the potential problem, used newly developed technology and thinned their vineyards using mechanical harvesters to shake off a portion of the green berries in mid-season to reduce the yield per acre, hoping they would ripen properly.This apparently was effective for a lot of growers but knowledgeable industry spokesmen estimate that nearly 8,500 acres or about 70,000 tons of Concord grapes were not harvested and fell on the ground because they did not meet the processors’ minimum brix requirements.

While the surplus in California is, at least temporarily, wiped out, the surplus in the US Concord industry should be eliminated soon, as well.

Due to the unusual stress placed on the Concord vines in all Eastern areas, the condition of the fruiting wood, for the 2004 crop, is under par and a below average crop can be predicted.In Washington, vineyards produced average fruiting wood.However, winter temperatures as low as –18° F, killed a large percentage of the fruiting buds and a below average crop is predicted there also.All Eastern, as well as the Western processors had their tanks full following the large ‘03 crop but the combination of factors we have described indicates a strengthening of the Concord market.

Please review our charts on page 3.We have changed from a 5 year history to 10 years to provide more references.

Please check our offers on page 4 and our website, www.herb-barber-sons.com, for further information.

It will be our pleasure to be of service to you.

Herb / Van / Sue

Prices are for 1 truckload of drums about December 1, following harvest.They reflect supply & demand.Demand fell off sharply since 2000 due to the influence of California’s low prices.Users blended heavier or removed Concord from their formulas, switching to low priced vinifera concentrate.