California Wine Prices Rise as 2011 Grape Crop Shrunk
The California wine grape harvest fell last year as prices improved to record highs.
Crop production declined 6.8 percent to 3.3 million tons, according to a preliminary report by the California Department of Food and Agriculture.
The drop in supply may have helped firm up prices, following several years in which prices were hurt by the weak economy. The average price for all wine grapes rose to $634 a ton. That was a 10 percent increase from the year before and set a record. Supply is forecast to remain short for the foreseeable future, keeping prices strong for grapes and bulk wine. The corollary to this is that ultimately, consumer prices will increase as well.