California’s total grape crush for 2024 reached 2.844 million tonnes, a significant drop from 3.685 million tonnes in 2023, according to the Pacific Region Grape Crush Report published by the California Department of Food and Agriculture on February 10. This marks a 24% decrease, making it the smallest grape harvest in California in two decades. The figures are also notably lower than the 3.2 million tonnes predicted earlier by the Silicon Valley Bank (SVB) Wine Industry Report in January.
Oversupply and Vineyard Reductions
To tackle the ongoing oversupply of grapes, California’s wine industry saw more than 37,000 acres (14,973 hectares) of vineyards removed in the past year. However, industry leaders, including Natalie Collins, president of the California Association of Grape Growers, argue that further action is necessary. Allied Grape Growers is now advocating for the removal of an additional 50,000 acres (20,234 hectares) to help restore market balance.
The state’s vineyard losses have also been exacerbated by wildfires in recent years. In February, LVMH-owned Newton Vineyard in Napa County announced its permanent closure after being devastated by the Glass Fire in September 2020, which destroyed most of its vines. The fire razed 27,300 hectares in Napa and Sonoma, including the loss of Newton’s 2019 vintage aging in barrels. Only two hectares of the vineyard’s vines survived the blaze.
Declining Grape Prices
Amidst a shrinking crush, grape prices in California have also seen a decline. The 2024 Pacific Region Grape Crush Report revealed an average price drop of 4.5%, with grapes selling for $992.51 per ton, compared to $1,038.77 per ton in 2023. Red wine grapes continued to fetch the highest prices at $1,311.15 per ton, though this was still a 2.6% decrease. White grapes, however, saw a more significant plunge, with prices falling by 4.8% to $698.61 per ton.
Napa grapes remained the most valuable, with an average price of $6,863.46 per ton. Despite this, Napa’s grape prices also experienced a decline of 2.3% compared to the previous year.
Looking ahead, Collins anticipates that the grape crush in California will continue to shrink in 2025 as the industry grapples with an oversupply and other ongoing challenges.
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