The Grape Growers of Ontario (GGO) have negotiated a two-year wine grape (Classes 5-10g) price agreement with Ontario Craft Wineries and Wine Growers Ontario. Under these challenging circumstances, prices will increase an overall six per cent in year one and 3.4 per cent increase in year two.
Matthias Oppenlaender, chair of the GGO board, says that more details will be available in the coming days.
Not only has inflation increased input costs significantly, but Ontario growers in the Niagara peninsula have discovered significant winter injury. It stemmed from a January 15, 2022 night of minus 26°C which resulted in bud injury. Chardonnay and Pinot Noir varieties are susceptible when temperatures dip below minus 20°C. So this means a shorter crop will be harvested in the fall.
The organization represents more than 500 grape growers who manage 17,000 acres of vineyards in Ontario. The Grape Growers of Ontario negotiates prices for all grapes sold to processors. While growers contract their grape sales directly with processors, prices must be no less than the minimum set through negotiations between the Grape Growers of Ontario and Ontario's grape processors. About 95 per cent of grape production is directed into commercial winemaking.
Source: Grape Growers of Ontario July 29, 2022 newsletter