California’s raisin industry is at a crossroads, facing declining acreage, rising labor and production costs, global competition and the challenge of attracting the next generation of farmers. But Jeff Smutny, President and Managing Director of the Raisin Administrative Committee (RAC), believes the industry has the tools, resilience and innovation needed to grow again.
In a wide-ranging interview with “the Ag Meter” Nick Papagni, Smutny discussed the future of California raisins, new varieties, dried-on-the-vine production, international marketing, USDA programs, domestic consumer outreach and the need to level the playing field with foreign producers.
A Resilient Industry Facing New Challenges
Smutny brings extensive USDA experience to the RAC, having previously worked with federal marketing orders and with the USDA Western Regional Office in Fresno. His relationship with the raisin industry dates to 2008 and 2009, giving him a long perspective on its challenges and ability to adapt.
The RAC operates under a federal marketing order that allows the industry to collect assessments on raisins produced. Those funds support USDA-mandated inspections, international marketing and compliance efforts. Smutny described the marketing order as a regulatory and marketing “toolbox” that gives the industry ways to address quality and trade concerns.
California remains among the world’s top five raisin-producing regions, but production has fallen from roughly 350,000 tons or more annually to about 220,000 tons. Raisin acreage has also declined as Central Valley growers compete with less labor-intensive crops, particularly tree nuts.
New Varieties Could Help Growers Stay Profitable
One of the industry’s key strategies is varietal research. Smutny said newer raisin varieties can potentially produce four or five tons per acre compared with lower yields from traditional Thompson Seedless vineyards.
The industry is also investing in dried-on-the-vine systems and overhead trellises, which can significantly reduce labor requirements and allow more mechanization. The transition, however, is expensive, with Smutny estimating conversion costs at approximately $20,000 to $22,000 per acre.
Research underway at a facility in Parlier is evaluating five or six varieties for earlier maturity, higher yields, mildew resistance and desirable flavor characteristics. Some newer plantings are already approaching five tons per acre.
Gunny Sacking and the Need for Fair Competition
Another issue discussed was “gunny sacking,” in which table grapes that are not harvested for the fresh market are allowed to dry and later gathered and sold. Smutny said an estimated 20,000 to 30,000 tons of this product may become available annually, but its uses are limited and it can be acquired at a much lower cost. The RAC is examining how to address the issue under existing grades and standards.
Smutny also emphasized the importance of protecting California growers from unequal competition. Through the federal marketing order and Section 8E, imported raisins must meet applicable U.S. grades and standards. The industry wants to ensure foreign producers face appropriate requirements when bringing product into the United States.
Countries including Turkey, South Africa and producers in South America are increasing raisin production, making international competition an important concern for California growers.
Marketing Raisins to a New Generation
Smutny believes marketing may be one of the biggest opportunities for rebuilding the raisin category.
The RAC currently focuses most of its marketing resources overseas, supporting California raisins in markets across Asia, Europe, Mexico and Canada. Domestically, large packers and brands handle much of the marketing, although the RAC is considering ways to support those efforts without competing against them.
Smutny sees enormous potential in social media. Influencers, chefs, nutritionists and dietitians could demonstrate raisin recipes directly to families and then repurpose that content for websites, recipe cards, food manufacturers and other marketing channels.
He also sees opportunities in new products. Raisins can be transformed into pastes and concentrates, creating possibilities for snack bars, protein products and other foods. Flavored raisins and creative packaging could also help introduce the product to younger consumers.
Schools Could Help “Farm Consumers”
The USDA school lunch program is another major opportunity. Smutny said raisins are a nutritious, naturally sweet snack and an important component of school food programs.
His message was memorable: growers need to “farm consumers” as well as raisins. Introducing children to raisins through school meals could help establish lifelong familiarity with the product and reconnect younger families with a traditional California agricultural commodity.
California Agriculture Needs a Stronger Voice
The discussion eventually broadened to California agriculture and the state’s political leadership.
Smutny said the next governor should understand the importance of California agriculture to the state, the nation and the world. He praised USDA Secretary Brooke Rollins and said California agriculture has a strong working relationship with USDA, including federal inspectors and Farm Service Agency personnel operating throughout the state.
At the same time, he hopes state leaders recognize the extraordinary costs and regulatory burdens facing California farmers. Smutny argued that California quality ultimately comes from California farmers and that reducing unnecessary costs could make it easier for them to remain competitive.
“Raisins Are Great Again”
Asked the toughest question of the interview—whether raisins can be great again—Smutny didn’t hesitate.
“I think raisins are great again,” he said.
He pointed to the industry’s resilience, unity and willingness to invest in its future. His vision is to reverse acreage losses, increase yields, expand consumption, develop new products and strengthen domestic and international demand.
For growers interested in connecting with the RAC, Smutny provided Jeff@raisins.org and 559-225-0520 as contact information.
Smutny closed by wishing California growers a successful crop and expressing hope that weather challenges, including the potential threat of El Niño, would not interfere with the season.
For the full conversation—including Smutny’s thoughts on new raisin varieties, mechanization, marketing, foreign competition, USDA programs and the future of California agriculture—listen to the complete interview between “the Ag Meter” Nick Papagni and Jeff Smutny.