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Raisin growers to fetch $1,323 a ton

Price up slightly, crop size down from 2008.

Published online on Friday, Oct. 09, 2009

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California's raisin growers will receive $1,323 a ton for their raisins this year, up from $1,310 last year, according to the Fresno-based Raisin Bargaining Association.

The price increase is part of a three-year agreement between the grower's association and region's packers. The 2007 deal -- in its second year -- was created as a way to help the industry through supply gluts and low prices.

"This was a huge benefit last year when the crop was really big," said Dinuba grower Michael Mikaelian.

Raisin growers brought in a 364,000-ton crop in 2008. This year's crop is estimated to be much smaller at 275,000 tons.

The crop may be smaller because of farmers trying to save money by cutting back on supplies such as fertilizer, and because of a reduced water supply in some areas.

Glen Goto, CEO of the Raisin Bargaining Association, said that despite the smaller crop, the industry should have an adequate supply to sell throughout the year.

This year, growers will be paid 85% of the per-ton price once they deliver their raisins. They will receive the rest after the industry achieves a 275,000-ton mark, and after there is sufficient funding for an industry-supported export program.

Goto said the association is encouraging growers to deliver their crops in a timely fashion. The sooner the crop estimate is achieved, the sooner the growers can receive their final payments.

The central San Joaquin Valley is the nation's leading producer of raisins, with Fresno County the top grower.

In 2008, grapes dried into raisins in Fresno County were valued at $309 million.

This time of year, growers are beginning to deliver their crop to the industry's packinghouses where they will processed and shipped throughout the world.

Although most raisins have been harvested, Goto estimates about 10% of the crop may remain in the field.

The threat of rain next week, however, will likely accelerate the harvest. The National Weather Service is forecasting a chance of rain Monday night, rain likely Tuesday and a chance of showers Wednesday.

"I would bet that if there is anything left on the ground, it will be picked up before Tuesday, for sure," Mikaelian said.


The reporter can be reached at brodriguez@fresnobee.com or (559) 441-6327.

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