Fruit Market Snapshot

Northwest agricultural markets are mostly stable to improving this spring. Irrigation water shortages in California will also impact the quality and quantity of grape and tree fruit production this fall, which should favor prices for Northwest growers. NW Farm Credit's Michael Stolp talks about the apple market.

STOLP: The outlook for the Northwest apple industry is positive, but tempered from last season. A larger U.S. apple crop has pressured Northwest fresh apple prices to levels lower than a year ago. As sales of East Coast and Midwest apples wind down, Northwest apple prices have firmed and are expected to stay strong through the remainder of the marketing season. The outlook for the 2014-15 apple crop remains clouded. Apple production in the Northwest is poised for a record year, but emerging weakness in export markets and uncertainty regarding labor availability could challenge the industry.

And he looks at the wine grape situation.

STOLP: The outlook is positive for Northwest wineries and vineyards. Global wine sales continue to increase and the Northwest has a growing presence on the domestic and world stages. Market dynamics have driven a rapid increase in wine asset and real estate investments from outside the region. California, the nation's dominant player in the wine and vineyard industries, is afflicted by exceptional drought. Irrigation water shortages in key growing regions could cause smaller fruit and lower yields for the 2014 harvest and beyond. Prices for grapes and bulk wine throughout the Western U.S. could experience upward pressure.

That's today's Fruit Grower Report. I'm Greg Martin on the Ag Information Network.