Exports play important role for California grape shippers

Many California growers have found a profitable niche in table grape exports.

“Even with the strength of the dollar, we still are doing a good job exporting grapes,” said Justin Bedwell, president of Bari Produce LLC, Madera, Calif. “The demand is still there.”

Bari Produce exports about 60% of its crop, mostly to Asia and the South Pacific.

At the same time, Delano, Calif.-based Jakov P. Dulcich & Sons, has become one of the major direct exporters of table grapes with customers in Asia, Australia, the Middle East and elsewhere, said Nick Dulcich, owner and director of sales.

Dulcich built up its export program by establishing numerous offshore contacts over the years, he said.

Delano-based Jasmine Vineyards Inc. has long been known for its export operation, said president Jon Zaninovich.

The company exports about half its grapes throughout China and Southeast Asia as well as to Australia, New Zealand, Mexico and Canada.

Exports from Columbine Vineyards in Delano fluctuate from 15% to 20% of the company’s business, said sales manager Keith Andrew.

The amount depends on factors like currency valuation and how much volume is available from other sources.

Top Brass Marketing Inc., Bakersfield, Calif., used to export nearly half its grape crop, said president Brett Dixon.

“Now, with increased competition from around the world and fluctuations in our dollar, we have seen that number decrease to about 20% over the years,” he said.

The company ships all over the world, but, aside from Canada, Asia accounts for the largest portion of its overseas destinations, he said.

Scarlet royals, sweet scarlets, autumn royals and red globes are the company’s most popular export varieties.

One change shippers have noticed recently is a gradual transition from red globe grapes, a traditional favorite of foreign buyers, to the same varieties that have become favorites in the U.S.

Bari Produce still exports about 85% of its red globe crop, Bedwell said. But the company also ships an increasing amount of varieties like autumn king and scarlet royal.

“(Export buyers) are looking for more seedless varieties, if they can travel and make the ride,” he said.

It could be a generational thing, he added.

“The older generation prefers the seeded grapes because that’s all they have ever known,” he said. “And the younger generation will buy whatever is on sale.”

But Columbine Vineyards’ Black Globe seeded grapes remain popular in some Asian destinations like Taiwan and China, Andrew said.

Export sales of red grapes are not as brisk as they once were, Dulcich said.

“It seems like the green grapes are getting more popular, for whatever reason.”

Since grapes destined for export likely will be on the water for two to three weeks, shippers tend to send their best product abroad.

“We expect a premium when we export, so we do try to ship our premium fruit,” Bedwell said.

Export buyers like large grapes, he added, and they’re developing a preference for pouch bags.

At one time, export shipments were mostly bulk-fill, plain-pack boxes, he said. Then buyers started asking for the old-style poly bags, and now they want handle bags, he said.

“It’s easier to export now, because there’s one pack style,” Bedwell said.

Asian countries continue to be a major export destination, Zaninovich said.

“Our European business has really fallen off,” he said. “They are mostly supplied out of Spain, Italy and Greece.”

There are other challenges to the export deal, as well.

The strong U.S. dollar shrinks the buying power for other countries, Dulcich said.

Canada and Australia “would buy like mad” when the value of their currency was similar to that of the U.S., he said.

In early June, it was closer to 77 cents to the U.S. dollar, “which makes it really expensive for them over there,” he said.

That has a ripple effect because more product remains to be sold in the U.S., he said, “and the market tends to suffer here.”