Grape growers spend more to produce less this year as one calamity follows another; still, yields might not be as bad as some feared

Grape growers finally have good news about the 2010 harvest: It's over.

One of the most miserable, expensive, anxiety-inducing seasons in memory has come to an end.

Growers picked the last of this season's harvest in early November, and have been busy washing equipment and preparing for what they hope will be a vastly easier 2011.

"It's over," said Steve Dutton, whose family farms 1,100 acres of vineyards in west county. "We're happy to get through it. It's been a tough year."

With all the crop now harvested, it appears the yields might be better than earlier expected.

Nick Frey, president of the Sonoma County Winegrape Commission, said yields might be down around 15 percent compared to historic averages. Earlier estimates had run as high as 20 percent.

Still, at last year's average grape price, a 15 percent decline in this year's harvest would cost county growers about $69 million.

That is a financial hit that might push some already cash-strapped owners out of business, and could result in mounting vineyard and winery foreclosures during the winter months.

"I think we are going to see some foreclosures," said Joe Ciatti, a winery broker and partner at Zepponi & Co. in San Rafael. "But people will hang in there the best they can, and the banks will support them the best they can."

Many growers are now focused on putting 2010 behind them.

"Let's look forward to next year," said Steve Thomas, director of vineyard operations at Kunde Estate Winery. "The goal for us now is to make the best wine we can."

Tanks at Kunde and other wineries across the county are sloshing full of young juice in various stages of fermentation.

"I was a little pessimistic going into harvest," said Tim Bell, winemaker at Kunde. "But I'm a little more optimistic now that we're into fermentation and we're seeing the progress."

Because of the cool summer and late-ending season, the grapes had more time to develop flavor even if sugar levels remained lower than normal, he said.

"They've been really smooth in the fermenter," Bell said. "We've had some really silky wines."

This year's tough growing conditions forced winemakers such as Bell to remain vigilant and ensure only quality grapes made it into production.

"It was one of the most mentally stressful seasons I've dealt with," Bell said.

He was in the vineyards at 3 a.m. during some harvest days.

"I spent more time in the fields than I normally do," he said. "I walked with the pickers and made sure everyone was dialed in on what was acceptable and what wasn't."

Lots of grapes didn't make the cut, and many people predict the 2010 vintage will be in short supply.

Some wineries turned away grapes at the end of the season because of low sugar levels or mold in the clusters.

Casidy Ward, who owns Hidden Ridge Vineyard in eastern Sonoma County, decided not to pick her and her husband's 60 acres of mountain grapes because the quality was not up to their standards.

"We just could not ripen the grapes enough," she said. "The weather just didn't permit it. It was really sad."

This year was a near perfect storm of misery for many growers. One calamity followed another, and each bit of bad news seemed to amplify the existing problems.

Growers entered the season knowing that grape prices would be low. High-end wine sales have taken a beating during the recession, and that trickles down to grape prices.

Mother Nature then wreaked havoc in the vineyards with a cool, damp summer that stunted grape growth while encouraging mold and mildew outbreaks. Growers had to spend a lot more time -- and a lot more money -- to manage their high-end fruit.

So growers endured what might be record-high farming costs, at a time when grape prices had fallen dramatically.

"This will be one of the most expensive years we've ever harvested," Dutton said.

That bleak situation was made worse when the cool weather was replaced almost overnight by a record-setting heat wave in late August. The sun blasted grapes, turning once-plump clusters into wrinkle-faced bunches. Some vineyards lost all their grapes.

So by the time farmers began picking, they had less to sell of their expensive-to-grow, cheap-to-buy crop.

"We spent more money, unfortunately, to get a little less, and get paid even less," said Thomas, at Kunde Estate.

The exact amount of crop loss due to mold and sun damage is difficult to pin down because problems varied widely from vineyard to vineyard and grape to grape.

Zinfandel grapes in key growing regions such as the Russian River Valley and Dry Creek Valley were decimated by sun damage, and were in short supply this year.

The California Department of Food and Agriculture's preliminary crop report is released in early February and will be the first clear look at the size of this year's crop.

In 2008, a late spring frost damaged budding vines, and yields were down nearly 20 percent as a result.

"There is a chance (this year's yields) will beat the 2008 crop, but we won't beat it by much," Frey said.

In fact, this year's crop loss could set new records for insurance claims, said Chris Maloney, who sells more policies than anyone else in the county.

"We had everything but locusts in 2010," she said.

Since 1998, Sonoma County growers have averaged 3.7 tons of grapes per acre, according to county records.

Vineyards cover about 56,000 acres in Sonoma County, meaning an average harvest would yield 207,000 tons of fruit and gross about $463 million for growers.

The wine industry hopes to finish closer to those marks next year.

"I'd like next year for Mother Nature to take it easy on us," Bell said with a laugh.

You can reach Staff Writer Nathan Halverson at 703-1577 or nathan.halverson@pressdemocrat.com.