Canada: Ontario Grape Prices Steady for 2013

(Wines&Vines) - Growers looking to sell grapes in Ontario, Canada, don’t just go to the winery down the road to negotiate a deal. It’s a bit more complicated. For most varieties, grape prices in Ontario are established by negotiations between the Grape Growers of Ontario, the Wine Council of Ontario and the Winery and Grower Alliance of Ontario. 2013 is the second year of a two-year pricing agreement for Ontario grapes, and the only change from the 2012 prices is an increase of 1% for white hybrid and white vinifera varieties and a 1% increase in red hybrid varieties. There is no change in price for red vinifera. 2013 prices are quoted in Canadian dollars per tonne (1 tonne equals 2,204.6 pounds).

The first two-year pricing agreement was a pilot program used to establish prices for 2010 and 2011. It was successful to the point of continuing an agreement for another two years, which expires in 2013. Debbie Zimmerman, CEO of the Grape Growers of Ontario, told Wines & Vines that negotiations for 2014 and beyond are likely to begin this fall, and she believes that long-term pricing has been successful.

Allan Schmidt, chair of the Wine Council of Ontario, told Wines & Vines, “Long-term pricing is working only because we don’t have to negotiate every year. It provides stability but doesn’t allow for fluctuations in grape availability.” He expressed a willingness to start negotiations this fall but pointed out that there is no requirement to do so until next year.