Winegrowers in Lodi, California, a region long celebrated for its Zinfandel and other varietals, are confronting one of the most challenging periods in recent history.
For over a century, Lodi has been a key supplier of high-quality grapes to wineries across the United States. However, in the past two years, many growers have abandoned their vineyards due to escalating production costs, declining consumer demand, and competition from cheaper imports.
Economic Pressures Drive Vineyard Abandonment
Randy Baranek, a fourth-generation Lodi farmer, estimates that almost a quarter of local grape production has been lost as thousands of acres have been uprooted. On average, one acre (0.4 hectares) yields 8 to 10 tons of grapes, which can sell for up to USD 3,000. Yet, growing this same acreage costs between USD 3,000 and USD 4,500, leaving many growers operating at a loss.
Abandoned vineyards present additional challenges: weeds and unharvested grapes proliferate, and clearing these fields is expensive due to state environmental regulations, forcing some farmers to leave the land fallow.
Declining California Grape Production
According to Stuart Spencer, executive director of the Lodi Wine Grape Commission, California’s grape production has steadily declined, reaching its lowest level in 20 years in 2024, with a total harvest of 2.9 million tons. A further reduction of 400,000 tons is projected for 2025.
This decline stems from both supply- and demand-related factors. Wine consumption in the U.S. has decreased over the past three years after decades of growth, influenced by inflation and changing drinking habits. Additionally, the state’s largest wineries increasingly import cheaper bulk wine, supported by federal tax incentives and subsidies for European producers, rather than purchasing locally grown grapes.
Farmers Consider Alternative Crops
Faced with ongoing losses, some growers are exploring alternative, higher-demand crops, such as almonds. Converting vineyards into almond orchards involves significant investment but can reduce labor costs and offer more reliable sales.
Kevin Phillips, one of the growers transitioning to almonds, explains that the crop is less expensive to maintain, requires less labor, and sells easily without extensive negotiation. Matt Manna, owner of Rancho Manna, calls this year his toughest in 20 years, highlighting the urgency for farmers to adapt.
A Shifting Agricultural Landscape
The situation in Lodi is causing widespread concern among winegrowers, many of whom fear losing their livelihoods if current trends continue. The gradual transformation of vineyards into alternative crops illustrates the economic and social pressures reshaping California’s wine industry, reflecting broader challenges in the domestic and global wine markets.
Source: Vinetur