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Groups affirm Ontario winegrape prices: plateau pricing to continue; arrangement intended to absorb surplus grapes.

Vineland Station, Ontario--White wine-grape prices will increase by 1% in accordance with the two-year pricing agreement reached last year for most hybrid and vinifera winegrape varieties. The Grape Growers of Ontario, Wine Council of Ontario and Winery & Grower Alliance of Ontario agreed to extend the 2010 pricing arrangement into 2011. Red hybrid and vinifera varieties will remain unchanged from 2010. Ontario currently has 128 licensed wineries, according to WinesVinesDATA.

Several other prices related to late harvest wines or ice wines remain unchanged. The minimum price for ice wine grapes is 125% of the price based on normal harvest. Ice wine juice prices in Canadian dollars are: hybrid juice: $15.76 per liter at 35[degrees] Brix, and vinifera Juice: $24.16 per liter at 35[degrees] Brix. The price for late harvest hybrid juice stays at $4.58 per liter at 26[degrees] Brix.

Winegrape Prices in Canadian Dollars Per Tonne

          Variety          2011 price

New York Muscat                $520

Seyval Blanc and Vidai         $600

De Chaunac and Rosette         $659

Marechal Foch                  $780

Baco Noir and Chambourcin      $843

Auxerrois                    $1,216

Gamay and Zweigeltrebe       $1,283

Johannisberg Riesling        $1,396

Chardonnay                   $1,424

Gewurztraminer               $1,554

Sauvignon Blanc              $1,570

Pinot Gris                   $1,575

Cabernet Franc               $1,676

Cabernet Sauvignon           $1,875

Merlot                       $1,894

Pinot Noir                   $1,933

Shiraz                       $2,164

Plateau-pricing pilot for four varieties

All three parties also agreed to continue the pilot plateau-pricing model inaugurated last year for Chardonnay, Riesling, Cabernet Sauvignon and Cabernet Franc.

There will be no tonnage restriction, and no new varieties have been added to the program. As was the case last year, plateau pricing is limited to deliveries made within the Brix window shown for each variety. The Brix level each year is based on a five-year rolling average. Deliveries at higher Brix levels must be paid for at the 2011 base price plus applicable sugar bonuses.

Processors must advise growers well ahead of harvest of their intent to purchase grapes at plateau pricing, and growers are encouraged to work with their processors to ensure that their grapes are harvested within the plateau-pricing range.

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Title Annotation:WineEast
Comment:Groups affirm Ontario winegrape prices: plateau pricing to continue; arrangement intended to absorb surplus grapes.(WineEast)
Author:Cattell, Hudson
Publication:Wines & Vines
Geographic Code:1CONT
Date:May 1, 2011
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