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Grape growers squeezed
San Francisco Business Times ^ | June 23, 2006 | Adrienne Sanders

Posted on 06/30/2006 11:38:46 AM PDT by Tamar1973

Elias Torres will pick grapes this season for the first time in 25 years.

The vineyard manager usually sends his laborers to do the work. But in the last two months, more than half of his 60-person staff has disappeared, he said, as a result of federal immigration crackdowns. So Torres, a 57-year-old quadruple bypass survivor, will pluck and sweat alongside field workers -- and even the vineyard owners who hire him to bring them in.

"This is the worst labor shortage I've seen since I came here in 1961," said Torres, a native of Guanajuato, Mexico, who manages work teams for more than a half-dozen growers.

Sonoma and Napa county vineyard owners -- those who grow and sell grapes to wineries -- are panicking that a recent evaporation of field workers will leave them unable to pick all their grapes at harvest in mid-September. Many are already three weeks behind schedule on crucial tasks that lead up to harvesting.

"If it continues the way it is now, we're not going to have guys and there are going to be grapes left on the vine," said Gio Martorana, a vineyard owner in Healdsburg, who sells Zinfandel, Chardonnay and other grapes to Gallo, Sonoma Creek and Amphora wineries.

That means pain at the beginning of the wine chain, where growers' labor costs have leapt as much as 25 percent this season, in part, due to a shortage of workers.

Wineries selling varietals to glassy-eyed tourists and supermarket shoppers don't grow all the fruit for the wine they make. Rather, they buy tons of specially tended grapes from surrounding growers, often contracting with several each season.

(Excerpt) Read more at sanfrancisco.bizjournals.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: agriculture; aliens; amnesty; grapegrowers; guestworker; illegal; illegalaliens; immigrantlist; immigration; invasionusa; labor; propaganda; wine
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To: CatoRenasci
Just a tiny point to make. I disagree a bit that boutique wines are overpriced - in the sense that their fixed cost per bottle is huge owing to price of the land and overhead (not the grapes which are a commodity). In fact, their true margins (adjusting for volume) are actually smaller than the big guys. It's analogous to the expensive restaurant versus the fast food one - fast food is infinitely more profitable. I'm not saying the wine is always worth the high price tag, but it's the cost needed to recoup the investment.

You don't choose to own a boutique winery to make money - trust me on this one ;-)

Your observations about Chavez are spot on.

41 posted on 06/30/2006 1:13:19 PM PDT by mgstarr
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To: slightlyovertaxed

Thats one out of the millions on welfare, hardly earth shattering or budget busting.


42 posted on 06/30/2006 1:59:08 PM PDT by Beagle8U (Liberals get up every morning and eat a big box of STUPID for breakfast)
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To: CatoRenasci

Which "majors" chardonnay to you recommend? I like dry.


43 posted on 06/30/2006 2:00:56 PM PDT by kmiller1k (remain calm)
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To: MOTR Newbie
Problem is, the apes would probably eventually learn to ferment and bottle the grapes, thus screwing the California wineries, while validating the Spaniards high regard for primates!

This could totally mess up the Ripple and Cold Duck, not to mention my personal favorite, Thunderbirds, ready availability.

44 posted on 06/30/2006 2:15:20 PM PDT by Don Carlos (Beer is proof God loves us and wants us to be happy. (B. Franklin))
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To: mgstarr
You don't choose to own a boutique winery to make money - trust me on this one ;-)

No kidding! Probably half of the boutique winery owners are in it for their own egos. My family has successfully made money in the wine business for at least 500 years, including over 100 years in California. I remember the tax structure in wine back in the 50's and 60's (and before) where your wine inventory was taxed every year - making aging prohibitively expensive relative to the price the market would pay. Bulk wines used to take a trip to Nevada in refrigerated tank cars during the tax inventory time, I always smiled when I was at the SJValley winery in late February and early March as the trainloads of empty tank cars came it and left full.... perhaps you remember those days as well. I also remember the stories of a family meeting held as the end of prohibition was being announced and the family was trying to decide whether to concentrate on fine wines in the Napa and Sonoma areas or make bulk wines in the valley. The decision was to concentrate on making what one of my great uncles described as "sound commercial wine" because, as my grandfather put it, we can make money making wine people will buy at a price where we make money, or we can go broke making fine wines. (Remember in 1964 BV Private Reserve Cab sold for $1.50 a bottle when the regular BV Cab was $1.00 - it was much worse in the late 30s and 40s. Simi walled up several thousand cases of their famous 1935 Cab so the tax guys would forget about it and only brought it out again around 1970 for the then unheard of price of $35 a bottle - and you could only buy some if Isabelle Haigh decided you were 'OK' - She'd test people by having them drink carignan (I can her her cackling 'be a man, drink some carignan') but, I digress).

It's interesting that you look at the equation on the pricing as related to the boutiques (admittedly high) cost per bottle based on the cost of land and overhead based on some notion of what's needed to recoup investment (and/or provide a ration IRR).

My take is from the other end: the consumer is (by and large) willing to pay only a given amount for wine of a given quality level. (We're not talking the few truly unique wines here) All things being equal, the majors can (when they want to) make quality wines at lower costs than the boutiques. Since I don't drink 'exclusivity' but only taste, I'm not willing to pay premium because the boutique has higher costs. To me an item is overpriced in the market when equivalent quality is available for less - the producers' relative costs are irrelevant to my choice.

45 posted on 06/30/2006 2:24:05 PM PDT by CatoRenasci (Ceterum Censeo Arabiam Esse Delendam -- Forsan et haec olim meminisse iuvabit)
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To: ansel12
how about "The American working man makes inroads against wealthy grape growers"

How about, "American grape growers are priced out of the market by low-cost imports". It happened to the French, and it can happen to us too.

46 posted on 06/30/2006 2:25:58 PM PDT by tortoise
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To: CatoRenasci
It's interesting that you look at the equation on the pricing as related to the boutiques (admittedly high) cost per bottle based on the cost of land and overhead based on some notion of what's needed to recoup investment (and/or provide a ration IRR).

That's because I'm a finance geek who decided to become a wine geek.

47 posted on 06/30/2006 2:33:16 PM PDT by mgstarr
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To: kmiller1k
I like dry.

Do you really? Everyone says they like dry whites (except a few women who admit they like it 'a little sweet'), but most people will pick wines with a fair amount of residual sugar.

After almost 50 years of drinking mostly California whites, when I want a not terribly expensive dry chardonnay, I drink real simple Chablis from a reputable shipper or if it doesn't have to be that dry, a good Macon Villages. It's not that such wines can't be made in California (though Chablis can't quite be matched), but rather that very dry, crisp style is not popular in California. And, the French wines are far better values, at least on the East Coast. Used to be you could get wines like that in California - of course the Hanzell was like a big white burgundy, but for many years Wente made a very nice clean crisp chardonnay.

It's really hard to recommend wines, because everyone's taste is different. There are only two things to know about wine tasting, one is simple, the other deceptively difficult:

1. Pull a lot of corks (i.e. try a lot of things).

2. Remember what you taste (develop a taste memory, take notes).

Very few people have reliable taste memories. Mine is only fair these days. My grandfather had a legendary taste memory - he could vividly describe wines he'd tasted before 1900 in ways that others who knew those wines said was remarkably accurate. He remembered everything he tasted, even bad wines; it was very enjoyable to taste with him, especially as he would describe how a wine was developing over time in the tank, then in barrel, and in bottle over time.

48 posted on 06/30/2006 2:37:36 PM PDT by CatoRenasci (Ceterum Censeo Arabiam Esse Delendam -- Forsan et haec olim meminisse iuvabit)
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To: mgstarr
That's because I'm a finance geek who decided to become a wine geek.

And I'm a wine guy who studied economics. I'm looking at the price from the market level, you're looking at it from the enterprise level.

49 posted on 06/30/2006 2:41:06 PM PDT by CatoRenasci (Ceterum Censeo Arabiam Esse Delendam -- Forsan et haec olim meminisse iuvabit)
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To: CatoRenasci

Interesting the slightly different perspective. There's obviously a market framework that you operate in, whether it's wine or widgets, but the enterprise economics also have to be addressed. In my case, I made vineyard decisions based on the fundamentals of the market so I was quite sensitive to both.


50 posted on 06/30/2006 2:45:48 PM PDT by mgstarr
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To: tortoise

I own a business too, I won't deal in illegal, or unethical, or (immoral for the faithful) practices to survive.

I will succeed or fail honestly, although in the contracting business many contractors of a shady bent will use illegal foreign labor to make up for their incompetency or more often just to feed their greed (isn't that always the reason?),I won't.


51 posted on 06/30/2006 2:47:07 PM PDT by ansel12
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To: mgstarr

I picked winegrapes for $6.50/hr a few summers ago (I am an American, and I volunteered to do it!). Did it mainly for the experience. It was hard, hot, backbreaking work. Not difficult, per se, but hard on the ole' spine. Doing it for a couple hours may be "fun," but doing it for 6 or 7 is generally considered "work." Then you have the occasional shear that rears up and bites you on the finger. Not pleasant.


52 posted on 06/30/2006 3:23:26 PM PDT by GnL
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To: CatoRenasci
OK, you are a wine guy, can you answer this....

I was once given a very expensive bottle of Lambrusko, made in Germany.

The best wine I've ever tasted, everyone says I'm insane, its only made in Italy.

I know what the label said, who is correct?
53 posted on 06/30/2006 4:18:23 PM PDT by Beagle8U (Liberals get up every morning and eat a big box of STUPID for breakfast)
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To: Beagle8U

There are unions all over Japan and in all Japanese industries. But, unlike unions here they have not sought their own gain on the alter of their company's disadvantage, as opposed to the world-renown behavior of U.S. unions; and thus why many foreign firms here have tried to avoid them, here.

As for working for a Japanese firm, here in the U.S., why don't you ask a Toyota employee in Kentucky if they would rather work for GM - and miss out the kind of five figure profit bonuses most of them got last year. Wonder why they prefer Toyota to a UAW job with GM?


54 posted on 06/30/2006 4:34:51 PM PDT by Wuli
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To: Beagle8U

You're not insane. Expensive is not a term usually connected with lambrusco, which is an Italian wine which is not typically appreciated by serious wine drinkers. The "Lambrusko" spelling is not unusual in Germany or Eastern European countries. Although it is not nearly as common as it once was, it is not unusual for wines made in France or Italy to be purchased by a negociant in say Germany, Belgium or England, shipped to the negociant in bulk (usually barrels for good wine) and for the wine to then be bottled (often after blending) in the negociant's cellars for sale. In your case, it might have had a label entirely in German if the wine was imported by a German negociant for an entirely German clientele. As an aside, the best bottle I've ever had of the 1955 Château Ducru-Beaucaillou was bottled in Belgium by a negociant who was known (in the day) for reliably importing bottling top growth Bordeaux. So, it's quite possible yours was an particularly well thought of exemplar of the negociant's Lambrusko.


55 posted on 06/30/2006 4:36:04 PM PDT by CatoRenasci (Ceterum Censeo Arabiam Esse Delendam -- Forsan et haec olim meminisse iuvabit)
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To: CatoRenasci
Thank you! Everyone said I was crazy when I said it was German.

It was a gift from a very high ranking judge to a well known doctor, doc didn't drink so it became a gift to me...lol

It WAS a very good wine!
56 posted on 06/30/2006 4:56:11 PM PDT by Beagle8U (Liberals get up every morning and eat a big box of STUPID for breakfast)
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To: Tamar1973

It probably never occurred to Mr. Torres to put an add in the paper for temporary help.

Teenagers and young adults around here can not find any work this summer, because the illegals have taken all the temporary jobs.


57 posted on 06/30/2006 7:22:54 PM PDT by TaxRelief (Wal-Mart: Keeping my family on-budget since 1993.)
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To: garyhope
Excuse me if I don't believe that there aren't plenty of Americans willing and able to pick grapes for a while.

He just doesn't want to fork over the $50 bucks to place an ad in the "Help Wanted" section of the newspaper.

58 posted on 06/30/2006 7:26:42 PM PDT by TaxRelief (Wal-Mart: Keeping my family on-budget since 1993.)
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To: Crucis Country

Sounds to me that if they're short X number of workers, there should be a corresponding drop of X number of welfare cases in that county.


59 posted on 06/30/2006 7:28:11 PM PDT by Sometimes A River (Miami Heat 2006 World Champions!)
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To: GnL

I pick and can berries for two weeks every summer. I have picked for several hours a day for the last few days (pre-season).

At peak season, I will pick all day, then make and can jam until I drop each day.

I will pick and can 21 acres of berries and grapes--90% BY MYSELF, 10% family labor--over two weeks.

Picking is hard work, but it can be done BY ANYONE who can move his arms, including 10-yr-olds.


60 posted on 06/30/2006 7:35:04 PM PDT by TaxRelief (Wal-Mart: Keeping my family on-budget since 1993.)
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