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National Raisin Releases Minimum Price for Crop Payment

Posted on: Tuesday, 23 August 2005, 00:00 CDT

Aug. 23--National Raisin Co. is the first Valley packer to announce its payment for the 2005 crop, establishing $1,210 per ton as its minimum price.

The year matches last year's price and is well above the $745 paid in 2001.

The company "strongly feels that Thompson grape growers should consider making raisins this year," said J. Kenneth Bedrosian, vice president of operations for National Raisin in Fowler.

The price comes as growers face the decision whether to dry grapes into raisins or sell them green for crushing into concentrate or wine.

Wine giant E&J Gallo, which usually establishes a price for Thompson grapes to be crushed, has not announced a price this year, said Nat DiBuduo, president of Allied Grape Growers in Fresno.

But some wineries have been buying the grapes at $200 a ton, he said.

Raisins were a $252 million crop in Fresno county in 2004.

"At this point, the raisin harvest is just around the corner, with September coming and the grapes ready to be picked," said Glen Goto, CEO of the Raisin Bargaining Association in Fresno. "Sugar levels are coming along nicely now that the weather has cooled.

"Growers will have to make a decision soon whether to lay the grapes down to make raisins or to sell them to the winery."

Goto said it was encouraging that a processor is willing to pay growers a minimum of $1,210. Those who sell to National could make more, Bedrosian said, depending on the size of this year's crop. The contract follows a sliding scale.

The Raisin Administrative Committee in Fresno has not yet set the marketing formula that would determine the exact price growers would be paid up front because the amount of expected reserves has not been determined.

Goto believes it will take more grapes to make raisins this year because of some challenges to the crop.

"It's in the best interest of the raisin industry to have a crop that supplies our marketplace," he said.

Sun-Maid President Barry Kriebel said that the cooperative has been holding district growers meetings, and "we've told our growers we think $1,210 is a good nunber and it's another good year to make raisins."

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Source: The Fresno Bee

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