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ONTARIO GRAPE AND WINE INDUSTRY ISSUES
You are invited to attend a meeting of the GGO membership for an update on the October 13, 2009 Government of Ontario industry announcement and the recent events to-date. This fact sheet has been created for your review and discussion at the Grower information meeting.
WHEN: Monday, March 22, 2010
TIME: 1 p.m. - 4 p.m.
Where: Bethany Church
1388 Third Street Louth
St. Catharines, ON L2R 6P9
MESSAGE FROM THE CHAIR
February 18, 2010
To Members of the Grape Growers of Ontario
Yesterday many of you may have received letters from the following wineries:
Andrew Peller Ltd., Colio Estate Wines, Magnotta Winery and Vincor Canada confirming statements made over the past few weeks that they will be reviewing long term supply agreements. As you are aware the Cellared in Canada (CIC) manufacturers are reacting to the October 13th, 2009 Government of Ontario announcement that will increase the tax levy on blended wines sold in winery retail stores effective July 1, 2010. While this impact is viewed as regressive by the CIC manufacturers the following facts outline the advantages they will receive from the announcement.
The Facts:
The government plan to focus the entire industry on growing VQA wine includes a 10% reduction in the tax advantage on blended wines sold in winery retail stores. Wine sold through Winery Retail Stores is subject to lower government levies than wine sold through the LCBO. Currently an $8.00 bottle of wine sold through the LCBO incurs $5.10 in taxes and levies as compared to the same bottle of wine sold at the Winery Retail store which incurs $2.07 in taxes and levies. The 10% surtax increases the overall levy to $2.72.
The government revenue generated from this initiative goes directly back to the industry to fund industry programs:
- $6 million/ year renewal of the VQA wine support program to promote sales of VQA wines through LCBO stores;
- $3 million/ year renewal of the marketing program for Ontario VQA wines;
- $3 million winery infrastructure program offered by GGO as a plan for 2010 to increase winery capacity and ultimately increase Ontario grape purchases;
- Change in Cellared in Canada (CIC) content to 40% by company and 25% in the bottle. The 5% reduction in the Ontario content by bottle is to ensure adequate quantities of Ontario vinifera grapes are available for VQA wine. This change in content provides approximately $2 million savings on grape purchases.
The GGO sees this current action of the CIC manufacturers as unhelpful in building a progressive grape and wine industry. The GGO is aware of the current situation and has consulted with legal counsel, and following proposed meetings with the two large CIC manufacturers a course of action will be determined. The GGO will advise growers of their next steps.
Please contact the GGO for further information:
Debbie Zimmerman, CEO
905 688-0990.
Yours truly,
Bill George Jr, Chair
Grape Growers of Ontario
ESTABLISHMENT & PRODUCTION COSTS FOR GRAPES IN ONTARIO
To view this report, please click here.
REDUCING COLD INJURY TO GRAPES THROUGH THE USE OF WIND MACHINES
To view this report, please click here.
BOARD COMMUNIQUE - OCTOBER 30, 2009
To view communique regarding update on Grape Growers of Ontario Advisory Team and development of Government's announcement regarding VQA quality grapes, please click here.
2009 PRICE NEGOTIATIONS UPDATE
August 7, 2009
Dear Members of the Grape Growers of Ontario:
I am writing to provide you an update following our 2009 price negotiations. As you are aware, at price negotiations, grape prices were lowered with the intent to move more grapes through all channels. Your advisory team and Board of Directors believe this price reduction incentive and signal to the industry was necessary to show the GGO’s willingness to work with our partners during tough times.
In addition to substantive price reductions and during price negotiations, the GGO presented an end-use price proposal. This temporary price category was created as an opportunity to use more of the 2009 crop in the current “Cellared in Canada” brand. It was recommended by our mediator, Dr. Frank Ingratta, that following negotiations, we meet to discuss the end-use price option and any other alternatives to deal with the 2009 surplus.
On Friday July 31, 2009 at the Farm Products Marketing Commission office in Guelph, and with the guidance of Dr. Frank Ingratta, options for purchasing surplus grapes were discussed.
Our goal at this meeting was to review our end-use pricing proposal or any other opportunity to move more grapes. Despite our suggestions and after review of our proposal, the WCO remained steadfast on their purchase target of 50,000 tonnes, leaving 8000 tonnes of grapes in surplus.
We believe we offered a principled approach to manage this year’s harvest and we believe we put reasonable price sensitive solutions on the table to move more Ontario grapes. Our focus will continue to be to find a solution that moves the current 8,000 tonnes of unsold Ontario grapes.
Sincerely,
Bill George,
Chair, Grape Growers of Ontario
GRAPE CROP ALERT REPORT
Click here for report of October 16, 2009.
Click here for report of September 18, 2009.
Click here for report of August 14, 2009.
STRUCTURAL CHANGE COMMUNIQUE
District Meetings Presentation - to view, please click here.
- Notes from District 1 - Niagara-on-the-Lake
- Notes from District 2 - St. Catharines
- Notes from District 3 & 4a - Town of Lincoln & Grimsby
- Notes from District 4b - Southwestern Ontario
- Notes from District 4c - Prince Edward County
To view the Structural Change Comminique #3 dated January 30, 2009, please click here.
To view the Structural Change Comminique #2 dated December 24, 2008, please click here.
To view the Structural Change Comminique #1 dated December 10, 2008, please click here.
To view the Structural Change Advisory Team, please click here.
For the "Structural Change" Grower Comment form, please click here.
FEASIBILITY STUDY FOR A NIAGARA/HAMILTON DISTRIBUTION CENTRE
As many of you know Niagara Region and the City of Hamilton have partnered with the Friends of the Greenbelt Foundation to undertake a feasibility study for a possible Niagara/hamilton Distribution Centre. tthe George Morris Centre has been engaged to undertake this work. This is part of an ongoing effort to support the actions outlined in the Local Food Action Plan.
A component of the study is a survey of 275 producers and processors within the Niagara/Hamilton area. This letter further explains the project process and informs producers/processors that they might be called for their input.
GRAPE BUD SURVIVAL 2008/2009
Click here for report as of January 12, 2009.
Reports can also be accessed at www.kcms.ca/research.asp.
2008/2009 COLD HARDINESS TESTING OF GRAPE BUDS IN NIAGARA
Click here for report as of January 28, 2009.
Click here for report as of January 20, 2009.
Click here for report as of January 15, 2009.
Click here for report as of January 9, 2009.
Click here for report as of December 15, 2008.
Click here for report as of November 26, 2008.
Reports can also be accessed at www.kcms.ca/research.asp.
CANADA-ONTARIO ORCHARDS AND VINEYARDS TRANSITION PROGRAM (OVTP)
Applications to the OVTP are accepted on a first-come first-served basis, until annual funding has been fully allocated. Applications submitted to date now exceed funding limits for the first year of the program. Interested growers should continue to submit applications this fall to stay in the queue for funding. As Agricorp processes applications, we will send letters to growers either confirming their acceptance or advising them that they have been placed on a priority list for the 2009 program year. Agricorp will notify applicants once funding becomes available. Growers who have already applied do not need to resubmit their application.
OVTP Application Update:
- Total Applications Received: 515
- Total Acres Applied for: 5,593
- Total Dollars Applied for: $9.054 million
Rebecca Metzger
Account Lead - Fruit & Honey
Agricorp
Direct: 519-826-7605
Fax: 519-826-4119
Toll Free: 1-888-247-4999 x 7605
PEST MANAGEMENT CENTRE NEWS
The Pest Management Centre at Canada's Agriculture and Agri-Food Canada has new information available on its website. Visit the PMC website to view the latest information.
Click here to review the status of all Minor Use Pesticides Projects sorted by crop.
Click here to review the document entitled "Identification Guide to the Major Diseases of Grapes".
WIND MACHINES FOR MINIMIZING COLD INJURY
For more information on wind machines minimizing cold injury, please click on the latest infosheet.
ONTARIO JUICE GRAPE TRANSITION PROGRAM
The Government of Ontario, through the Ministry of Agriculture, Food and Rural Affairs, has established the voluntary Ontario Juice Grape Transition Program to provide qualifying Ontario growers of juice grapes with part of the costs of removing and disposing of their vineyard stock in 2007. NOTE: THE APPLICATION DEADLINE WAS JULY 4, 2007. APPLICATIONS ARE NO LONGER ACCEPTED.
Click here for more information.
Click here to read an addendum to the program guidelines.
Click here to download a presentation on the juice grape industry.
WINE COUNTRY ENHANCEMENT REPORT
To view this report entitled "Energizing Niagara's Wine Country Communities", please click here for cover, click here for report.
GROWING FORWARD
Replanting to Optimize Ontario's Viticulture
To view this document, please click here.
GRAPE GROWERS OF ONTARIO - January 16, 2007 Special Meeting
This meeting was held at Governor Simcoe Secondary School. To view the report, please click here.
NEW WINE AND GRAPE REPORTER AT THE STANDARD
Monique Beech is The Standard's new wine and viticulture reporter.
Every Friday, The Standard will be printing a fun and lively column filled with local wine and grape industry news. This is a behind the scenes look at the industry, covering everything leading up to the finished bottle of wine.
Monique is looking for interesting tidbits on everything from who's new and who's leaving Niagara wineries to new innovations in grape growing and wine making. She is also hoping to hear about any noteworthy upcoming events wineries are hosting.
Please pass along any other story ideas/tips you may have.
Monique Beech
Phone: 905-684-7251 Ext. 247
Fax: 905-684-6032
Email: mbeech@stcatharinesstandard.ca
The Neo Bio Consulting Report - Recommendations for Grape and Wine Research Fund
To access this report, click here.
Workshop Summary On Topic of Wind Machines
For a summary of the Workshop on Wind Machines held in Niagara-on-the-Lake, December 5, 2006, please click here.
CROP PROTECTION WIND MACHINES
For more information on crop protection and wind machines, please click on http://www.omafra.gov.on.ca/english/engineer/facts/windmach_info.htm.
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