Today for your Northwest Farm Credit Services 4th quarter snapshot, we look at cherries and wine. Karen Witt Vice President at Northwest Farm Credit Services said northwest cherry growers are expected to break-even or perhaps see slightly profitable margins, depending on harvest timing.
“Cherry growers continue to experience a large, midseason supply glut that reduces profits while prices in the early and late seasons are more favorable. Little cherry disease was significant in 2018 and is expected to challenge production in the future.”
When turning to the wine industry, Witt said all indications are Northwest wineries will be profitable due to stable sales and consumers that continue to trade up to higher-priced wines.
“Vineyard returns are pressured due to several years of large vintages creating oversupply in some areas and varieties. Wine sales growth is positive. However, most of the growth is driven by increases in value of wine sold and not increased consumption. In fact, wine consumption is flat, which is challenging the industry.”
Join us Friday as we wrap up our weeklong series with Hay and Wheat.
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