USDA to purchase $20 million in Concord grape juice amid market surplus

The U.S. Department of Agriculture (USDA) has announced a $20 million purchase of surplus Concord grape juice to support growers in the Lake Erie Grape Belt and New York. This intervention follows the March decision by beverage processor Refresco to cancel 126 contracts across the region, citing supply imbalances and market challenges.

The contract cancellations have left many growers in New York and Pennsylvania without guaranteed buyers for the upcoming harvest. While the USDA's purchase aims to mitigate the impact of the surplus, some local producers expressed concern that the move does not address the underlying issues or provide direct relief to those who lost their specific contracts.

Industry factors contributing to the market imbalance include increased grape yields, competition from imported bulk wine, and restrictions on grocery store wine sales. In response, the New York Wine and Grape Foundation is developing a marketing plan to expand demand and create new markets for Concord grapes.