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

Updated October 2009 by Diane Huntrods, AgMRC, Iowa State University.

Production
Raisins are the most popular dried fruit in the United States, accounting for about two-thirds of total dried fruit consumption (ERS). Raisins are primarily produced in California’s San Joaquin Valley and are sun dried. In 2008, over 5.0 billion pounds of raisin-type grapes were produced

California raisin acreage (essentially accounting for all U.S. raisin acreage) peaked in 2000 at 280,000 acres. The next year, however, acreage decreased sharply to 235,000, following a severe decrease in prices in 2000. Since then, acreage has increased but not to previous levels. In 2008, 221,000 acres of raisin-type grapes were of bearing age.

The United States is generally the largest raisin producer in the world, although Turkish production did surpass U.S. production in 2006. Historically, U.S. and Turkish production combined have accounted for 80 percent of global production figures.  (FAS 2009)

Raisin production was once the most labor-intensive activity in North America (Rural Migration News). It traditionally involved a lot of hand labor, up to 40,000 to 50,000 workers for the typical six-week harvest, to cut bunches of green grapes and layer them to dry in the sun on paper trays between the rows of grapevines. However, the new dried-on-the vine (DOV) technology facilitates machine harvesting of the dry raisins, reducing worries about rain damage. Mechanization eliminated 90 percent of the harvesting jobs.

Processing
Green grapes have around 22 to 26 percent sugar, and drying reduces the amount of water and increases sugar to 60 percent by weight. Four to five pounds of green grapes dry into a pound of raisins.

Sun-dried seedless raisins constitute 93 percent of the total raisin crop. These raisins are the most popular raisin for cooking, baking, salads, desserts and eating out of hand. Golden seedless raisins account for 5 percent of the total raisin crop. Golden raisins are mechanically dehydrated and specially treated with sulfur dioxide to preserve the golden color. They are popular in fruitcakes. Currants are seedless mini-raisins. Made from a specific variety of grape, they are sun dried for use in baking.  (Raisin Administrative Committee)

As of 2008, 24 raisin packers in California were responsible for the processing and packaging of raisins. The largest packers are Sun-Maid Growers of California, a cooperative owned by farmers. In addition, the 24 packers were also handlers (shippers) of raisins.

Marketing
The California raisin marketing season lasts from the beginning of September to the end of May.

The Raisin Administrative Committee (RAC), established through the federal Raisin Marketing Order regulating raisins produced from California grapes, has authority to determine the quality, volume and price of raisins that may be shipped by handlers in any marketing channel or that must be placed in a reserve pool to be disposed of by RAC.

In years of oversupply, the RAC also can implement the Raisin Industry Diversion Program in which growers voluntarily participate in programs aimed at reducing supply. Program participants are reimbursed for either removing vines or spur pruning to reduce fruit production. In 2002, the Raisin Industry Diversion Program enrolled 27,000 acres. The program was not implemented in 2003 or 2004.

In addition, RAC has used funds provided by the Market Access Program to increase consumer and trade awareness of high-quality California raisins and to promote their use in food services, baking and cooking recipes overseas (FAS). Marketing efforts have also focused on opening the Indian market to permit the U.S. high-quality product to meet increased demand from a growing middle class in India. However, high tariffs and increasingly strict import requirement for raisins have restricted market access to India (FAS).

U.S. domestic marketing efforts have waned since the discontinuation of the California Raisin Advisory Board and retirement in 1994 of the advertisements depicting “dancing raisins.” In its place the California Raisin Marketing Board, created by the California Raisin Marketing Order in 1998, supports and promotes the increased use of California-grown raisins and sponsors crop production, nutrition and market research.

Demand
In 2007, per person consumption of grapes was 21.1 pounds and of raisins was 7.0 pounds (ERS). This is a 3.8 pound decrease from 1988, when consumption peaked at 10.8 pounds per person.

Prices
Following significant increases in production from 1998 to 2000, the price of raisins fell dramatically. Arbitration between growers in the Raisin Bargaining Association and the raisin processors resulted in prices of less than $563 per ton in 2000 (Rural Migration News). Although prices continued downward after 2000, to a record low of $377 per ton in 2002, prices rebounded to $1,127 per ton in 2004 after two years of continuous decline in production. (FAS). By 2008, the price per ton had rebounded to $1,310.

2008 was the first year of the three-year agreement between the Raisin Bargaining Association and the region’s packers, which provided growers with a minimum price for their grapes. The minimum price is based on a sliding scale, allowing raisin prices to adjust up or down from the minimum agreed price, based on the final production levels. In 2008, the minimum price was set at $1,310 per ton. Because production was up, however, the average grower price for raisin-type grapes was $1,170 per ton, which was 13 percent higher than the previous year's average price but lower than the minimum price set for that year. The minimum contract price set for 2009 is $1,323 per ton.  (ERS 2009)

History
Raisins are dried grapes. Their name comes from the Latin word racemes, which means “a cluster of grapes or berries.” Grape growing (viticulture) appears to have started around 6000 BC in present-day Armenia, Azerbaijan and Georgia, and it is reasonable to assume that dried grapes were consumed from early days. By the 9th century A.D., at least 78 varieties of grapes were being grown in the Near East.

Spanish missionaries brought their grape-growing and wine-making knowledge to Mexico, New Mexico and California in the 18th century when establishing their missions. They also made raisins from Muscat grapes. Eventually, the San Joaquin Valley in California became a desirable location for raisin production because of the long, hot growing season and abundant water supplies. By the late 1800s, Armenian raisin producers had settled in the area and used their expertise to make the industry thrive. Also in the late 1800s, a Scottish immigrant, William Thompson, developed the Thompson seedless grape, which became the prevalent grape variety used in raisin production (California Raisin Marketing Board). In addition to being an excellent grape for raisin production, the Thompson seedless grape is versatile because it can be marketed as a fresh commodity or used to make grape juice or wine.

Exports
The United States is a net exporter (exports less imports) of raisins. On a quantity basis, the United States was the second largest exporter of raisins in the world in 2008, following Turkey. On a value basis, the United States exported raisins valued at a record-setting $300.0 million, a 41 percent increase from 2007.

The top destination for U.S. raisins in 2008 was the United Kingdom (UK), which accounted for $59.7 million. Other important destinations that year were Germany, Japan and Canada, who imported U.S. raisins valued at $34.7 million, $34.3 million and $29.3 million, respectively.

Imports
In 2008, the United States imported 42.5 million pounds of raisins, down 11 percent from the previous year, primarily from Chile. Chile has been the leading supplier of raisins to the United States since 2000. U.S. imports of raisins peaked in 1998 at 49.5 million pounds. In 2007, imports provided just 11 percent of the raisins consumed domestically.

The European Union (EU)-27 was the largest global importer of raisins in 2008, followed by Russia (FAS 2009).

Sources
California Raisin Marketing Board, Fresno, California.

California Raisin Packers, Raisin Administrative Committee.

California’s Farm Labor Market: The Case of Raisin Grapes, University of California-Davis, 2008.

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

Fruit and Tree Nuts Outlook, ERS, USDA, 2009.

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

Raisin Administrative Committee

Raisin Update, Dennis Pollock, The Fresno Bee, 2008.

Raisins: World Markets and Trade, Foreign Ag Service (FAS), USDA, 2009.

Rural Migration News,University of California, Davis, 2004.

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

Developed September 2006 and updated October 2009.