Winegrapes, flowers bloom in 2021 Sonoma County Crop Report, while dairies drop

Sonoma County’s annual crop report showed a rebound of nearly 20% from the previous year, fueled by increased production of pinot noir, cabernet sauvignon and zinfandel grapes.

After a dismal 2020 crop widely affected by smoke taint, a more forgiving fire season in 2021 allowed grapes to mature to their fullest, according to Sonoma County Winegrowers President Karissa Kruse.

“Sonoma County grape growers faced one of the most challenging harvests on record in 2020 due to the impact of smoke exposure from the numerous wildfires across the state of California,” Kruse said in an email. “The 2021 Sonoma County winegrape harvest was a return to a more normal year for local farmers.”

Sonoma County’s agriculture economy reported a total value of $811,446,600 in 2021, according to the crop report, up from $680,648,600 in 2020. Flowers and nursery products also saw a return to elevated production. But the same could not be said for milk production at Sonoma County dairies, which are struggling to make ends meet due to increased production costs and set prices.

The good

Thanks to a merciful fire season and a market rebound for wine caused by the easing of COVID-restrictions at restaurants and wineries in 2021, Sonoma County’s grape crop earned $540 million in 2021, a 51% increase in gross value over the previous year, Kruse said.

“In 2022, there has been more grape demand than supply which has led to the higher per-ton pricing. When the market returns to being demand driven, pricing tends to follow, which is what we saw in 2021,” Kruse said.

Kruse specifically noted the pinot grape crop from the report, which makes up approximately one-fifth of all grapes produced in Sonoma County, she said.

“Pinot noir grapes saw the largest impact due to the timing of harvest,” Kruse said in an email. “Any impact to these grape can result in a large swing in overall value of the total winegrape crop on any given year.”

But the rebound of the grape crop comes with some reservations from historical levels of production, said Ned Hill, the owner of La Prenda Vineyards Management, which oversees nearly 1,000 acres of vineyards throughout Sonoma Valley.

“2020 is almost something to discount, but we still are not back to quote-unquote normal levels even with 2021,” Hill said. “That's talking about yield and value. The price per ton has stalled out and our yields certainly are not... going to be what they were in from 2018, 2019 yields.”

Increased competition with alcohol alternatives, the still-recovering restaurant economy and disruptions to global markets for materials such as fertilizer have also abetted recent harvests, Hill said.

But the more pernicious challenge facing Sonoma County grape growers is extreme weather, Hill said.

“The one thing we can’t escape is the climate,” Hill said. “The lack of rain, the heat spells, the wind... The springtime this year was was hellaciously windy, and all of that affects the crop.”

Extreme weather patterns over the growing season have caused inconsistent grape production across the 1,200 acres of Sonoma Valley vineyards managed by La Prenda Vineyards Management. This has resulted in “record-low” harvests at some fields while others have have “extremely, unbelievably high harvests,” Hill said.

“Normally, you can point your finger on a certain area or a certain rootstock or a certain soil type,” Hill siad. “We can't this year.”

The bud

The 2021 crop report found the value of nursery products increased 30% from 2020, stemming from increases of more than 30% each for the sales of ornamental plants, miscellaneous nursery plants and cut flowers.

The crop reported specifically noted the 23.5% year-over-year decrease in plants for flower beds, which the report attributed to the public’s effort to conserving water.

Ornamental flowers were the third-highest grossing crop for Sonoma County, behind winegrapes and milk, with a gross production of nearly $26 million in 2021.

And the ugly

While overall numbers were up in the crop peport, one of the most significant declines came from milk production, the second largest “million dollar crop” cited in the 2021 report at $124 million, down from $157 million the previous year.

The Mulas Dairy Company had its 100-year anniversary this year, according to CEO Mike Mulas, but a grim present and future wait for the generational Sonoma Valley family.

Mulas said the declines highlighted in the 2021 report are afflicting the entire dairy industry due to increased costs, which in turn have led to decreased production. These challenges resulted in more than $33 million less in gross value than the previous year, countywide.

“The price we have to pay to get that production, everybody’s trying to get creative and cheapen up their rations however they can to survive in the business,” Mulas said. “You’re backing off certain things, so you’re losing production by doing that.”

The war in Ukraine and its effect on oil prices, lingering supply chain issues from the pandemic and California’s ongoing drought have increased the costs of feed, from corn to canola, to soybeans and barley.

While these issues are not unique to the dairy industry alone, Mulas acknowledged, their effects on the organic dairy industry in Sonoma County have been outsized.

“The value of livestock and poultry products decreased 21% compared to 2020. This decrease is largely due to a 21% decrease in organic and conventional milk production despite a 10.8% increase in organic and a 13.7% increase in conventional milk value per unit,” the report states.

Mulas said five Sonoma County dairies closed this year or chose to leave the region. And the future of Sonoma County dairies looks even more bleak.

“I don’t know if there’s a dairy in the county, whether you’re Sonoma or Marin, that’s not looking at an exit plan,” Mulas said. “You do something you love, but it’s getting tough to do.”

Contact Chase Hunter at chase.hunter@sonomanews.com and follow @Chase_HunterB on Twitter.