Price Set At $1650 Per Ton
Thompson Seedless Vineyards To Be Pushed
Raisin Bargaining Association (RBA) announced that it has reached agreement
with its signatory packers on the 2013-14 Natural Seedless raisin harvest
announced field price. The price will be
one thousand six hundred fifty dollars ($1,650.00) per ton or eighty-two and
one half cents ($0.825) per pound. The
price is calculated using the following formula:
Base price $1,457.00 $0.7285
Maturity @ 75%
Container rental 21.00 .0105
Transportation (minimum) 15.00 .0075
USDA inspection 13.00 .0065
2013 Announced RBA field price $1,650.00 per ton $0.825 per lb.
growers have sent a strong message to the industry that they prefer selling
raisins on a 100% basis now and into the future. With that in mind, the Board of Directors of
the Association worked diligently toward a compromise with their signatory
packers to establish a fair price that reflects the additional California
raisin production for this season.
Raisin Administrative Committee (RAC) recently estimated the 2013 Natural
Seedless raisin crop at 348,437 tons in comparison to deliveries of 311,090
tons last year. The $1,650 per ton price
for the 2013 Natural Seedless raisin crop is a 13% reduction to last year but
takes into account the additional crop that is estimated for production as well
as the challenging market conditions that the industry will be facing.
agreement calls for growers to be paid in three installments this year as
opposed to four installments last season.
65% of the payment will be due fifteen (15) days after completion of
delivery, 20% will be due to growers on or before February 28, 2014, and the
final 15% will be payable on or before April 30, 2014.
the past, grower reserve raisins generated funds to assist the industry in
marketing additional production into world markets. The effort to sell this year’s additional
production without reserve programs and the temporary elimination of state
marketing and promotion funding are two reasons why the RAC assessment of
fourteen dollars ($14) per ton has been included in the pricing formula. This will provide an opportunity for the
industry to work together through the RAC in support of efforts to market 100%
of each year’s crop without reserves.
reported from the International Dried Grape Producing Countries Conference in
October, there continue to be strong indicators that Turkey has a significantly
smaller dried grape crop to market this coming season. California and Turkey are the two largest
producers of dried grapes in the world. It
was also reported that South Africa, Chile, and Argentina have suffered
tremendous frost damage in their vineyards, which will severely limit their harvest,
which begins in January. The ability to take full advantage of what appears to
be a tremendous sales opportunity requires an announced field price.
Raisin Bargaining Association Board of Directors understood the importance of
establishing this important benchmark in a timely manner to sell the maximum
amount of raisins this year. However,
they are also well aware of the impact it has on the grower community. Labor, water, and energy costs have significantly
increased for growers over the past twelve months further squeezing their
bottom line margins. As agricultural
resources in California are depleted vineyard owners will continue to seek the
best utilization of their land.
Ag Today editors spoke with Steven Spate, an RBA Grower representative, and a
raisin grower. He said: “We are witnessing a large amount of raisin grape
vineyards being removed (between 8,000 and 15,000 acres) from production this
year in favor of more mechanized and profitable crops such as almonds, walnuts,
will tell what impact this acreage reduction will have on the future of the
California raisin industry but taking the necessary steps to market this year’s
crop was extremely important for the Raisin Bargaining Association to
accomplish. We are now counting on the
California raisin packers to sell this crop to provide a better future for the
remaining growers in our industry,” Spate said.
added that processors thought the price should have been lower, but growers
generally thought that shortages in Turkey and other areas should have boosted
the price. “But still, there are excess raisins on the market and it has
created a down swing in price.
price should help to see more fruit this year and it should help with next
year’s pricing,” said Spate.
who are pushing out vineyards say that the lower price is only one factor that
is in play. Chronic labor shortages are also encouraging growers to plant a less