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

Updated October 2011 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. Raisins are primarily produced in California’s San Joaquin Valley and are sun dried. In 2010, nearly 1.7 million tons of raisin-type grapes were produced, an increase from 2009. Since the price of raisins also increased to $342 per ton, the value of production reached more than $637.2 million. (NASS 2011)

California raisin acreage (essentially accounting for all U.S. raisin acreage) peaked in 2000 at 280,000 acres. The next year acreage decreased sharply to 235,000. 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 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).

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 2009, per person consumption of raisins continued to decline, falling to 1.3 pounds. Raisin consumption peaked in 1988 at 2.1 pounds per person.  (ERS 2010)

Prices
Following the low prices in the early 2000s, U.S. grower prices for raisin grapes dried into raisins have held strong, averaging at least $1,000 per ton. In 2010, prices averaged $1,540 per ton, up from $1,130 the previous season and the highest since 2004. The higher prices can be attributed to tight inventories coming into the season, which drove down raisin supplies in the United States.

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 was $1,323 per ton.  (ERS 2009)

History
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 (more exports than imports) of raisins. Only Turkey exports more raisins. Exports climbed in 2010, rising to more than $327.3, a 14 percent increase from 2009. The top destination for U.S. raisins remained the United Kingdom, which purchased raisins valued at $51.6 million. Other important destinations that year were Japan, Canada and Germany.  (FAS 2010)

Exports have been extremely strong the past three years, and high inventory levels have been drawn down to supply overseas markets (FAS 2010).

Imports
The United States imported raisins valued at $29.9 million in 2010, up 7 percent from the previous year. Chile was again the leading supplier of raisins, as it has been since 2000, providing raisins valued at $14.7 million. However, imports from Chile declined 22 percent, more than offsetting the increases from South Africa, Mexico and China.  (FAS 2010)

In 2010, imports provided just 11 percent of the raisins consumed domestically (ERS 2010).

Trends
NASS forecasts the 2011 California raisin grape crop will total 4.1 billion pounds, down 1 percent from a year ago. USDA expects U.S. raisin production to be down 4 percent from 2010, totaling 738.5 million pounds.

While this season’s domestic raisin production is anticipated to decrease, exports of U.S. raisins in 2011 are forecast to increase 6 percent from last season to 343.0 million pounds on expanded exports to Europe and China. U.S. raisin imports in 2011 are forecast to remain relatively unchanged from last season’s 42.8 million pounds because higher beginning inventories will be able to cover for the anticipated decline in domestic production
 

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, 2009.

Fruit and Tree Nuts Outlook, ERS, USDA, 2011.

Fruit and Tree Nuts Yearbook: Dataset, ERS, USDA, 2011.

Global Ag Trade System, FASonline, USDA.

Noncitrus Fruits and Nuts, National Ag Statistics Service (NASS), USDA, 2011.

Raisin Administrative Committee

Raisins: World Markets and Trade, Foreign Ag Service (FAS), USDA, 2011.

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

Developed September 2006 and updated October 2011.