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Title Domestic, world market growing … Grape juice concentrate emerging as a sweetener in juices, food products
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Abstract The domestic and world market for grape juice concentrate is growing. We discuss several options that may enable the San Joaquin Valley's grape industry to capture a larger share of this growth market.

Authors
Heien, Dale M
Agricultural Economist   Professor
Agricultural marketing, governmental regulation, applied demand analysis
Venner, Ray : R. Venner is a graduate student, Department of Agricultural Economics, UC Davis
Publication Date Sep 1, 1993
Date Added May 27, 2009
Copyright © The Regents of the University of California
Copyright Year 1993
Description

Consumer preferences for fruit sweeteners over table sugar have strengthened an already growing concentrate market.

OCR Text
Domestic , world market growing . . . berm or in weeds averaged 11.8and 9.0 moths per replication , respectively . 3.8 Disked nuts yielded an average of moths per replication . Emergence from shredded mummy nuts was 0.3 ( onenut was found intact followingthe shred - ding treatment ) . Percent recovery from Grape juice concentrate - 5.9 â?쳌 / , the initial population was low 4.5 % ( 24 % reduction ) , 1.9 % ( 68 % reduc - emerging as a sweetener in tion ) , and 0.2 % ( 97 % reduction ) for berm , weeds , disked or shredded , re - spectively , compared with 1991 . It is un - juices , food products known why this discrepancy occurred . In the 1991 - 1992winter , rainfall ewass relatively normal , and temperatur Dale Heien 0 Ray Venner were more moderate than in 1990 - 1991 , when a severe freeze occurred in mid - December followingplacement of thender nuts in the orchard . Interestingly , u laboratory conditions , NOW adult emer - gence was relatively similar each year . sweetensjams and jellies , yogurt , frozen These results are unlike those ob - The domesticand world market fruit desserts , cereals , cookiesand other tained for almond , which has a rela - for grapejuice concentrateis soft shell compared with walnut . tively bakery products . Fruit concentratesare growing . We discussseveral op - LittleNOW survivaloccurredin mummy replacing table sugar and corn syrup as tions that may enable the San almonds allowed to remain ina weedy many consumers perceive fruit concen - cover throughout winter . Disking also trate as a healthier sweetener . Consum - Joaquin Valleyâ??sgrape industry to resulted in considerablybetter NOWThe ers favorably view products labeled â?? no capture a larger share of this mortality in almond than walnut . sugar added . â?쳌 In 1989 , when white growth market . thicker walnut shell apparently offers grape juice concentratesold for $ 4.50 a considerablymore protection than does gallon , the costs of grape juice oconcen - w , the almond shell . trate and table sugar were similar . N Grape juice concentrate , an emerging grape juice concentrateis slightlymore growth industry , is used in making Conclusions grape and multifruit juices and in sweet - expensive . U.S . , total - Winter orchard sanitation is essential Sparklingjuice sales in the ening food products . Production in Cali - fornia increased to approximately to NOW management in walnut or - ing 37.3million gallons in 1989 , are chards . However , simply removing 462,000 tons in 1991 , accountingfor 28 % growing 15 % annually . Sales of spread - of the 1991SanJoaquin Valley crush mummy nuts from the trees does not able fruits are also increasing at the ( grape districts 12 , 13 , and 14 , see map ) . destroy overwintering larvae and pupae same rate . Demand for products con - and prevent subsequent adult emer - The concentrate , produced by heating taining fruit concentrateis expected to grape juice under a vacuum to remove gence . Our data show that adult NOW continue . water , competeswith apple and gotherar , readily emerge from intact nuts shakena U.S . grape juice concentrateis prima - n fruit juice concentratesas well as su from trees and allowed to remain on rily supplied by several varieties grow mainly on a price basis . dry , weed - free orchard floor . Shredding in the SanJoaquin Valley and by the San Joaquin Valley grape growers mummy nuts followingtheir removal Concord variety in New York and other 1presents basic generally view concentrateas a market from the trees essentiallyeliminates all northern states . Table for surplus grapes , just as wine was once U.S . grape juice concentrateproduction NOW survival . Disking nuts into the a market for grapes not marketed as soil , or allowingnuts to remain in a and trade . table grapes or raisins . Over time the The price of grape juice concentrateis weedy cover reduces emergencebut wine market has relied increasinglyon does not eliminate it ; a few nuts in strongly affected by the worldwide sup - wine - specificvarietal grapes and on ply of apple juice concentrate , which ac - each situation probably remain ex - grapes grown in Californiaâ??scoastalar - counts for approximately 72 % of US . posed and relatively dry , allowing eas . Today , the grape juice concentrate fruit concentrateconsumption . Apple NOW to survive . market is filling the surplus grape mar - and grape are close substitutes forpple Our data offer little flexibilityin man - ket role . Just as grape production multifruit and sparkling juices . A aging mummy nuts to eliminate NOW overwintering , once nuts are shaken changed in response to wine industry juice concentrateprices fluctuate with from trees . Shredding remains the bestuc - demand , grape production for concen - the level of apple juice concentrateim - method for ensuring maximum destr U.S.appleex - trate could become a primary market fore ports and the amount of the crop processed into concentrate.For tion of larvae and pupae in a walnut San Joaquin Valley growers . This articl ample , in 1991 , the prices of all fruit con - sanitation program . examinesthe prospects and problems in centrates rose substantially as rfewerate making this transition . apples were diverted into concent The concentratemarket G . S . Sibbett is Farm Advisor , Tulare due to fears surrounding the use of the County , and R . A . Van Sfeenwyk is Exfen - Grape juice concentrateis diluted growth regulator Ajar . The price of sion Entomologist , Department of Entomol - into single - strengthgrape juice and apple juice concentratein 1993plum - ogy , UC Berkeley . multifruit and sparkling juice . It also meted because of bumper apple harvests 28 CALIFORNIA AGRICULTURE , VOLUME 47 , NUMBER 5 Californiagrape districts 12,13,14 District 12 : San Joaquin County of State Highway 4 ; south Stanislaus and Merced counties . District 13 : Madera , Fresno , Alpine , Mono , lnyo counties ; and Kings of Nevada and Tulare counties north Avenue ( Avenue 192 ) . 0 District 14 : Kings and Tulare counties south of Nevada Avenue ( Avenue 192 ) ; and Kern County . 1990and 1991 . in Germany and Eastern Bloc nations , By value , the and because a larger share of the U.S . U.S . is the worldâ??s 1992apple crop was divertedinto apple largest exporter ofen - juice concentrate.The price of grape grape juice conc juice concentratetends to fluctuatewith of trate . The pattern that of apple . this trade for 1990is Internationalmarket . Grapejuice is 3 . given in table exported in three forms:frozen and un - Japanliberalizedfruit frozen concentrate , and juice . It is typi - juice imports , liftinggrape cally sold in concentratedform and pro - juice quotasin 1990 , and has U.S . cessed in the importingnation . The fifth largest im - quickly become the generally exportshigher - valuefrozen porterof grape concentrate , - in terms of concentrateand grape juice and imports value . Quality - consciousJapanesepro - lower - value unfrozen concentrate ( table cessorsprefer the Concord grape , which 2 ) . U.S . exports are Concord ( Vitusvin - is not produced in California.Before ifera ) from northern states and a limited trade liberalization , JapanfavoredUS . amount of Muscatfromthe SanJoaquin exportersto lessen their trade surplus U.S . exports of grape juice con - Valley . with the U.S . , but the import liberaliza - in - centratehave steadilyrisen . Imports Fig . 1 . Varieties grown in grape districts tion in 1990enabledJapanesefruit pro - creased sharplyin 1990and 1992 . ( Be - 12,13 and 14 are candidatesfor the cessorsto choose more freely . As a re - emergingconcentratemarket . cause we have grouped severalvarietiest sult , althoughJapanesegrapejuicee produced at differenttimes in differen concentrate importsincreased , th per - countries , importsand exportsmay rise centagefrom the U.S.declinedfrom 95 % simultaneously . ) U.S.grape juice in 1989to 64 % in 1991 . U.S . grape Argentinasupplied 62 % of concentrateexportersbenefited from liberalizationprogram . Other East mAsian - juice concentrateimportsin 1990 , but its nations are also expected to increase i Japanâ??slifting of import quotas , but they exportshave since declinedas a result of were harmed by losingpreferential ports . high inflation , increaseddomesticwine U.S.grape concen - treatment . Overall , The InternationalTrade Centre ( ITC ) prices and poor weather . Hail and un - has concludedthat the fruitjuice busi - trate exports to Japanrose as Japanâ??sin - timely rains reportedly devastated ness will remain a growthindustry for a creasinglevel of importsoffset the de - Argentinaâ??s 1993grapejuice concentrate long time . Per capita consumption of U.S . share . clining export prospects as well . But other na - fruit juices and nectars is still fairlylow Community The European Economic tions , notably South Africa , areboosting in most markets.Consumptionof fruit ( EEC ) markets for fruit concentratesare U.S.and contributed their exports to the juices is projected to increase due to currently of limitedinterest because of to a record level of U.S . grape juice con - greaterhealth consciousness.Innovative EEC trade barriers . EECâ??s customsdu - centrateimportsin 1992 . packagingby bottlers and retailers , ties for fruit concentratesare up to 50 % U.S . applejuice concentrateimports coupled with advertising and aggressive are also becoming less dependent on Ar - of their value for non - EEC exporters . promotion , will also increase consump - gentina.The growingnumber of impor - Nearly all EEC concentrateimportsare tion . Fruit concentrates are increasingly tant apple concentrate exporterswill from other EEC nations.Japaneseand used in other food and beverage prod - tend to stabilizethe prices of all fruit Canadianmarkets will likely remain the concentrates . ucts , including dairy products and U.S.grape juice primary markets for health drinks . The ITC estimatesthat the concentrate exports.SouthKorea is ex - U.S.grapejuice concen - The value of world market for fruitjuices will grow pected to eliminateimportrestrictions trate exportsincreased rapidly to $ 43.7 stronglyin the future . on grape concentratein the 1995 - 1997 d i o n in 1989and declined slightlyin CALIFORNIA AGRICULTURE , SEPTEMBER - OCTOBER 1993 29 Enhancing concentrate sales In this section , we discuss the av - enues open to industry to increase de - mand for grape juice concentrate and to make it more competitive with other concentrates . 1 . Develop red and white grape va - rieties for concentrate use , to replace the currently used winegrapes and Grape varieties Thompson Seedless . have traditionally been selected for uses other than concentrate . For example , Thompson Seedless , Chenin Blanc and French Colombard are crushed for white grape concentrate . An ideal white con - centrate variety is high yielding with a neutral taste , like Burger and perhaps Tokay . Properties of an ideal single - strength white juice grape variety are : ( 1 ) low level of phenolics for minimal color development , ( 2 ) low pulp level for good yield , ( 3 ) machine harvestability , ( 4 ) ease in pressing , ( 5 ) no aroma , ( 6 ) neutral taste and ( 7 ) high yield . An ideal red grape variety would share many of these qualities , but it would also contain dark red pigment , which might be ge - netically engineered . 2 . Investigateviticultural practices to lower the cost of productionfor Winegrape growers grape concentrate . seek the optimal tradeoff between yield and wine quality , and have been sup - ported by substantial viticultural re - search . Growers marketing grapes for concentrate attempt to maximize sugar content and do not need to consider wine quality . But they generally follow the same viticultural practices as grow - ers marketing grapes for wine . Growers for concentrate have little guidance on fertilizing , pruning and trellising to pro - duce grape sugar at the lowest cost . Also , one niche market may be har - vesting grapes early , at 12 " to 14 " Brix , so that they can be fresh squeezed into 100 % grape juice ready to drink . This could apply to certain varieties , such as Muscat . 3 . Standardizegrape solids into precise uniform grades . Food proces - sors use Statistical Process Control to precisely measure basic functional and chemical properties and their variations . Processors insist that ingredients have a uniform quality and prefer to use corn fructose as a sweetener because it con - tains a fructose level to a precise specifi - cation . In comparison , technology has not been developed to create uniform grades of grape concentrate . Also , different concentrate specifica - tions are desirable for different food products . The shift in consumer prefer - ence toward fruit sweetener may justify creating concentrates specificto food 30 CALIFORNIA AGRICULTURE , VOLUME 47 , NUMBER 5 products . According to industry Joaquin Valley concentrate in - experts , concentrate could be dustry could petition that at used in any application calling least part of the import duty be for sugar or corn syrup . Grape used to fund generic promo - juice is a much more complex tion . The petition would be system than sugar or corn syrup . more likely to succeed if the in - Issues of pH , SOz , tannins , phe - dustry were already collectively nolics , dextrose / fructose ratios promoting and researching , as and microbial content all cause was the case with the Florida interactions in mixed fruit sys - Citrus Growers . tems that have to be empirically Industry organization explored . Also , variations in characteristics , such as titrable San Joaquin Valleyâ??s grape acidity , pH and color , could be concentrate industry is not orga - exploited to develop market nized to implement programs niches for grape juice concen - outlined here . In response , sev - trate . Establishing several uni - eral valley grape growers have form grades would enable pro - formed the California Fruit Juice cessors to select the best grade Growers ( CFJG ) , a voluntary or - for their food product . ganization of grape , apple and Research on grape juice could pear producers whose fruit is The Centurian grape variety is a candidate also increase the demand for crushed for concentrate . As an al - for grape concentratebecause it is high grape concentrate . For example , the U.S . ternative , other commodity groups have yielding , high in acid and high in sugar . Department of Agricultureâ??s Agricul - enacted commissions to ensure that all ( Photoby Harold Olmo ) tural Research Service ( USDAIARS ) has industry members contribute and that developed four grades of pear juice by profitable research and marketing may tural commodities through participation clarity . Pear concentrate is also com - be supported . The programs mentioned in the USDA , Foreign Agricultural Ser - bined with other fruit concentrates in here cannot be implemented without ac - vice ( FAS ) Market Promotion Program multifruit juices . The pear industry now tive industry participation . ( MPP ) and Export Incentive Program has a decolorized , deflavorized , deodor - ( EIP ) . Selected commodities receive FAS Conclusion ized , generic fruit sweetener with vary - funding for generic and brand promo - ing levels of pear solids . ARS has not de - Grape concentrate is a growing mar - tion overseas and developing recipes in veloped similar sweeteners with varying ket , thanks to an innovative industry foreign languages . For example , the levels of grape solids . and consumer preference for fruit sweet - Concord grape industry received $ 1.4 4 . Generically promote grape con - eners over table sugar . Grape concen - million in 1991from the FAS to promote centrate , especially to the cereals and trate is diluted into grape and other fruit Concord products overseas . bakery sectors . Technical data , as well juices , and also sweetens a limited but 6 . Petitionto earmark proceeds as recipes substituting grape solids for increasing number of food products . from the $ 1 - per - gallonduty on grape sucrose in selected food areas , could be World grape juice concentrate trade is concentrate importsfor research and produced . An information package competitive , but growing . There are sev - This would be simi - generic promotion . could be assembled to show selected eral options for San Joaquin Valley lar to the Florida Citrus Growers â?? use of food processors how grape concentrate grape growers to capture a larger share excise tax revenues from orange juice can be used in their products . Little in - of the fruit concentrate market . These imports . San Joaquin Valleyâ??s grape con - formation is currently available on how options include developing new variet - centrate industry may be discouraged to substitute grape juice concentrate for ies and viticultural practices suited for from collectivepromotion , because ex - sugar . Cereals and baked products rep - concentrate , developing precise , uniform porters of concentrate to the U.S . would resent growth opportunities ; only re - grades for concentrate and engaging in not contribute to the promotion but cently have fruit concentrates been sub - generic and export promotion that would benefit from the increased de - stituted for table sugar and corn syrup . broadens industry understanding of mand . Florida citrus growers faced a The complex nature of grape concentrate how concentrate may be used . Enacting similar situation . They generically pro - makes conversion difficult . For example , these and other options may enable moted oranges and orange juice concen - grape concentrate contains more tartaric grape concentrate to join table grapes , trate . Promotion boosted demand , but acid than corn syrup , so bakery produc - raisins and wine to become the fourth much of the increase in sales was sup - primary market for California grapes . ers must be able to consistently offset the plied by cheaper imported orange juice added acidity . This program would be concentrate from Brazil . Because Brazil targeted at food processors and not con - and other nations benefited from the sumers . D . Heien is Professor and R . Venner is a promotion but did not contribute , A relevant example is the honey in - graduate student , Department of Agricul - Florida exacted an equalizing excise tax dustry , which assists food processors in tural Economics , UC Davis . on imported citrus products in 1970 . By converting from sugar to honey with a The authors would like to acknowledge 1984 - 85 , revenue from this excise tax ac - program employing technicians who helpful comments from Jim Carter and counted for 33 % of total orange excise compile properties , research applica - Amand Kasimatis . A more detailed report on taxes and was used to pay for 30 % of tions and offer problem - solving assis - grape concentrate and other possibilities to Floridaâ??s generic citrus advertising ex - tance to honey users . increase demand for grapes is availablefrom penditures . 5 . Promote San Joaquin Valley D . Heien , Department of Agricultural Eco - on The U.S . $ 1 - per - gallon duty charge grape concentratesales abroad . EX - nomics , University of California , Davis , CA imported grape concentrate generated ports are enhanced for many agricul - 95616 . $ 3,276,033 in revenue in 1991 . The San CALIFORNIA AGRICULTURE , SEPTEMBER - OCTOBER 1993 31
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