Vineyard development is becoming more challenging for winegrape growers as costs continue to be an issue. President of the California Association of Winegrape Growers, John Aguirre said costs really began to increase a few years ago with trade disruptions related to steel. The higher tariffs on steel resulted in increased costs for critical materials such as wire, stakes, and end posts. Aguirre explained that the material costs are adding to an already challenging situation.
“Now in 2022, with well-known supply chain disruptions and higher labor costs, costs of vineyard development are really skyrocketing. And certain unique situations apply as well. You look at the San Joaquin Valley where vineyard pullouts and the ability to dispose of those vines is really challenged because of growing restrictions on the ability to burn that waste,” said Aguirre. “All of this is just conspiring to make growers think, ‘well, what’s the price that I need to redevelopment my vineyard, or establish that vineyard?’ And it needs to be a much better price because the costs are just going through the roof.”
Listen to the radio report below.