The Crush - July 2019 - 1

Volume 46 Issue 7 July 2019

[ FEATURE STORY ]

Utilizing the Crush Report For Business Decisions
USING DATA FOR CONTRACT PRICING, PLANTING DECISIONS, INVESTMENTS
By Ted Rieger

TABLE 2: Total tons crushed by type, variety and district.

Two grape market analysts provided insight and advice on the
"Utilizing the Crush Report to Make Sound Business Decisions"
panel at the CAWG Summer Conference. CAWG President John
Aguirre, who served as session moderator, said, "The Crush
Report is not perfect and could use improvements, but we're
lucky that we have it for our industry,
as not all crops and commodities have
this type of resource to make financial
decisions."

TABLE 6: Weighted average grower returns per ton delivered.

Allied Grape Growers President Jeff Bitter
said the California Grape Crush Report
came about through legislation known as
the Clare Berryhill Grape Crush Report
Act of 1976, named for the former state
legislator and Ceres grape grower who
authored the legislation (and the father of
current CAWG chair Bill Berryhill).
The annual Crush Report is compiled and
published by the California Department
of Food and Agriculture (CDFA) in
cooperation with USDA's National
Agricultural Statistics Service (NASS)
Pacific Regional Office in Sacramento. PDF
files of annual reports from 2018 to 2008
are available through the CAWG website under the "Resources"
tab. Crush Reports are also accessible at the NASS website at
www.nass.usda.gov/ca.
The report includes a map and definitions of the 17
California grape pricing districts and 10
tables of crush tonnage and pricing data.
Bitter believes the following tables are the
most useful:

TABLE 8: Base prices paid to growers by Brix adjustment factors,
purchased tonnage, type, variety and reporting district where
grown. Weighted average base prices and total purchased
tonnage are included.
TABLE 10: Weighted average grower
returns per ton for "non-related" party
purchased grapes delivered. Bitter said
this table gives a truer picture of average
prices compared with table 6 that includes
"related-party" transactions, such as
wineries that supply grapes to themselves
for lower or no costs.
Bitter said table 8 is the bulk of the report
with the most detailed information
about grape pricing and where the most
analytics can occur. The 2018 report totals
159 pages, and table 8 alone makes up 128
pages. He showed how table 8 data can be
turned into graphs to see the distribution
of pricing for specific varieties in specific
districts.
Bitter presented 2017 data graphed for chardonnay in District
11 (Lodi) showing tons purchased at each price point that
ranged from $250 per ton to $1,300 per ton, but the majority of
district chardonnay sales were $500 to $600 per ton, indicating a
relatively small price distribution range.
In contrast, District 4 (Napa) cabernet sauvignon showed a huge
range in 2017 prices from $1,500 to $15,000 per ton. The highest
volume sales price point was 1,400 tons that sold at about $5,800
per ton. This indicates a grape market with a diverse transaction


https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Reports/index.php

The Crush - July 2019

Table of Contents for the Digital Edition of The Crush - July 2019

The Crush - July 2019 - 1
The Crush - July 2019 - 2
The Crush - July 2019 - 3
The Crush - July 2019 - 4
The Crush - July 2019 - 5
The Crush - July 2019 - 6
The Crush - July 2019 - 7
The Crush - July 2019 - 8
The Crush - July 2019 - 9
The Crush - July 2019 - 10
The Crush - July 2019 - 11
The Crush - July 2019 - 12
The Crush - July 2019 - 13
The Crush - July 2019 - 14
The Crush - July 2019 - 15
The Crush - July 2019 - 16
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