By Hayley Boriss, Henrich Brunke, and Marcia Kreith, Agricultural Issues Center, University of California.

Revised May 2009 by Diane Huntrods, AgMRC, Iowa State University.


History and Overview
Viticulture was originally brought to California by Spanish Franciscan friars, who began cultivating grapes at California missions in 1769 to produce sacramental wines. However, it was not until the 1800s that the production of fresh grapes became popular. The first fresh grape vineyard was planted on land just outside of present-day Los Angeles in 1839 (California Table Grape Commission).

During 2008, 7.3 million tons of grapes, valued at $3.4 billion, were grown commercially in the United States. California accounted for 6.7 million tons, or 90 percent, of these grapes. Other top grape-growing states included Washington (5%), New York (3%), Pennsylvania (1%) and Michigan (1%).  (NASS 2009)

Compared to other grape uses, the fresh grape industry accounts for a small portion of the total grapes grown. In 2008 only 978,000 tons of fresh grapes were produced. The largest producer was California, with 969,000 tons. However, fresh grapes accounted for only 12 percent, or $366.7 million, of the total value of California's 2008 grape production.  (NASS 2009)

Washington is the major producer of grapes used for juice. In 2008, the state produced 205,000 tons, or 43 percent, of all juice grapes. Other states producing significant quantities of juice grapes include (in order): New York (26%), Pennsylvania (17%) and Michigan (14%).  (NASS 2009)

Demand and Marketing
U.S. per person consumption of fresh grapes has increased over the last three decades from 2.9 pounds per person in 1970 to 8.0 pounds in 2007 (ERS). Per person consumption of fresh grapes has actually remained around 7 to 8 pounds per person since 1985. U.S. consumption of grape juice totaled 0.6 gallons per person in 2007, an increase of 25 percent, following per person consumption of orange juice (3.8 gallons) and apple juice (2.3 gallons) (ERS 2008). The promotion of fruits and vegetables as a healthy dietary choice has helped to increase consumption. U.S. fresh grapes are marketed mainly from May through December, with Southern California accounting for much of the early season crop and central California accounting for the later supply. Demand for U.S. fresh grapes remains strong because of their high, consistent quality.

Production
In 2008, grapes were harvested on 938,550 acres. Of those acres, just 10.4 percent contained grapes for the fresh market, but that year's harvest of fresh grapes totaled 978,200 tons. As a result, the average price of fresh grapes plummeted to $523 per ton, causing the total value to decrease to $511.7 million, a figure similar to the yearly value of fresh grape production from 1999 to 2004.  (ERS 2008)

The dominant U.S. variety of fresh grape has been the Thompson Seedless, created in 1876. The green Thompson Seedless is used primarily for the fresh grape market but also for raisin production, and in some cases, wine production. Other popular table grape varieties include the red varieties of Red Globe and Emperor.

The European Union (EU)-27 accounts for nearly 40 percent of the 69 million tons of all grapes produced in the world (FAS 2008). China now ranks second, because it grows fewer grapes than Italy and France individually. The United States, which accounts for nearly 10 percent of world grape production, is the fourth largest grower in the world.

China retained its status as the leading producer of fresh grapes, harvesting 7.7 million tons in 2008. The EU-27 was the second largest producer, followed by Turkey. The United States ranked seventh in that year's world production of fresh grapes.  (FAS 2009)

Exports
Historically, just over one-third of U.S. domestic production of fresh grapes is exported. The value of U.S. fresh grape exports totaled $609.1 million in 2008, a 10 percent increase from the previous year. The United States exported fresh grapes to over 60 different countries in 2008, with Canada, China/Hong Kong and Mexico being the most important destinations. Canada accounted for 28 percent of total fresh grape exports that year, but the country's share of total exports has been decreasing. In 2008, the Canadian share of U.S. grape exports declined 8 percent to $169.4 million.  (FAS)

China/Hong Kong was the second largest U.S. export market in 2008, followed by Mexico (FAS). That year, China/Hong Kong accounted for 12 percent of total U.S. fresh grape exports (China for 2 percent and Hong Kong for 10 percent) and Mexico for 10 percent (FAS).

The United States exported $91.7 million of grape juice in 2008, primarily to Canada, Korea and Japan (FAS).

Imports
The United States is a net importer of grapes (imports minus exports), importing $974.8 million worth of fresh grapes in 2008, a 1.6 percent from the previous year (FAS). While the value of U.S. exports has increased substantially since 1989, the value of imports has increased at a greater rate, widening the trade gap between imports and exports of fresh grapes. Through imports, the United States is able to maintain a supply of fresh grapes year-round. By 2007, 52 percent of the fresh grapes consumed in this country were imported (ERS 2008).

By far the most important exporter of grapes to the United States is Chile, which supplied 70 percent ($679 million) of total fresh grape imports in 2008 (FAS). In the same year, Mexico supplied 23 percent ($225 million) of U.S. grape imports, making it the second largest source of U.S. imports (FAS). The fresh grapes from these two countries are generally imported during the off-season months. Fresh grapes are imported from Chile mainly from January through April, and Mexican imports are generally received in the United States during May and June, with smaller amounts arriving in early July.

The United States imported $134.3 million of grape juice in 2008, primarily from Argentina (FAS). In 2007, 49 percent of the grape juice consumed in the United States was imported (ERS 2008).

Prices
Prices for fresh grapes are typically higher than those for grapes used for processing, reflecting higher production costs. Much of the high production costs are attributable to a significant dependence on manual labor. Typically, prices for table grapes are lowest in August, when the U.S. domestic grape supply is at its peak, and prices begin to rise in November as supplies decrease.

During the last five years, prices for fresh grapes peaked at $986 per ton in 2006. The following year, prices declined to $873 per ton. In 2008, prices tumbled to $523 per ton.  (NASS 2009)

Prices for all processing grapes continue to remain lower than fresh grape prices. However, prices for canned and juice grapes have steadily climbed in the last few years while the price for wine grapes has remained fairly stable. In 2008, wine grapes were valued at $550 per ton, canned grapes at $323 per ton and juice grapes at $260 per ton.  (NASS 2009)


Sources
Food Availability (Per Capita) Data System, Economic Research Service (ERS), USDA.

Fresh California Grapes, History of Grapes, California Table Grape Commission.

Fresh Deciduous Fruit (Apples, Pears, & Grapes), Foreign Agricultural Service (FAS), USDA, 2009.

Fresh Table Grapes: World Markets & Trade, FAS, USDA, 2008.

Fruit and Tree Nuts Situation and Outlook Yearbook, ERS, USDA, 2008.

Fruits and Tree Nuts, ERS, USDA.

Noncitrus Fruits and Nuts, National Agricultural Statistics Service (NASS), USDA, 2009.

U.S. Trade Internet System, FASonline, USDA.

Created February 2006 and updated May 2009.