Top Story: Growers Observe Innovative Robotic Pruner in Action

A group of mostly grape growers got a close-up and personal tour of Vision Robotics' new Intelligent Robotic Vineyard Pruner at a demonstration, which took place at the Sutter Home Delta Ranch in Sacramento County in March.

Derek Morikawa, CEO of San Diego-based Vision Robotics, was on hand to present the new concept as well as answer any questions about the pruner, which is in its second phase of development. The state-of-the-art pruner can scan a vine, create a computer model of it, calculate a cutting plan and shear the vine. It is unique because it uses stereoscopic camera technology (two cameras that can visualize depth like human eyes), which is the key aspect of the pruner's ability to prune carefully and accurately.

In a presentation that preceded a tour of the pruner's abilities in the vineyards, Morikawa emphasized that their goal was to help growers with today's most critical concern: labor. "The writing is on the wall," he said. "We need to do something not only about the cost of labor but, most importantly, the availability of labor." Morikawa noted that the pruner does not intend to replace labor but to exist as another choice when needed, such as when service and construction industries are actively recruiting workers from the same labor pool.

The Intelligent Pruner provides the look and quality of work performed by a hand crew and can function day or night, with two pruning heads operating on two rows simultaneously. It can also take into account wires and trellis structures. The pruner operates at a stop-and-go pace with the use of a hydraulic link that expands and contracts every half-cordon step. While at this point in development the pruner is towed, it will ultimately self-propel.

Based on one acre of 726 vines, all the vines can be robotically pruned in about four hours (moving at a little over eight feet a minute, spending about 20 seconds on each vine and 1.5 seconds per cut). Morikawa stated that the pruner will save 40 to 50 percent over the cost of hand labor, with a fairly rapid payback within 2.5 seasons (working 18 to 20 hours a day over 12 to 13 weeks per season). The cost of robotic pruning calculates to about $.17 per vine versus $.35 per vine for manual pruning ($124 versus $254 per acre). The cost of the pruner will be about $150,000.

The pruner works by scanning an entire vine as the machine's small hydraulic shears approach it. Multiple photos are taken from which an accurate 3-D image is constructed. From here, pruning rules (based on how the grower wants to prune) are applied and the vines are then pruned. "It's a similar process that a human goes through," said Morikawa. "The entire cordon is considered, looking at cane position, thickness, how many buds there are, etc." Different "rules" can also be applied based on the grape variety and goals for quality and yield.

Phase 2 will span about two years, said Morikawa, who added that the final pruner design will be faster and have collision avoidance software (so foreground canes you don't want cut will be avoided while aiming for background canes). Further down the line, the company hopes to integrate functions that will aid with suckering, tying, shoot thinning and crop estimation.

Morikawa emphasized that funding for the project has come mainly from those in the wine and grape industries since they are the ones most eager to put the pruner's technology to use. He added that Vision Robotics Corp. is currently seeking investment units of $125,000 from 20 investors, who will receive tax benefits, a discount on their first purchase and other purchasing rights. For more information, visit www.visionrobotics.com.

--Cathy Fisher

EU Trade Agreement Ends, Banning Exports with "Traditional Expressions" on Labels

Permission to use more than a dozen expressions such as "chateau," "vintage," "classic," "clos" and "fine" expired March 10, 2009 on the three-year anniversary of the 2006 wine trade agreement between the United States and the European Community. This has forced wineries such as Napa's Clos du Val to halt shipping to almost every country in the Europe.

The change removes terms previously permitted under Appendix I, Part A of the trade agreement, which says the EC "shall permit the use of the terms "chateau, classic, cream, crusted/crusting, fine, late bottled vintage, noble, ruby, superior, sur lie, tawny, vintage, vintage character."

Canadian Government Helps Domestic Wineries Step onto the World Stage

Canada is taking its wine abroad in a new government-funded export strategy designed to showcase the country's premium quality products.

The Department of Foreign Affairs and International Trade (DFAIT) is spending US$81,000 (CAN$1 million at press time) during the initial 12 months of a three-to-five-year campaign. Canada's exporting wineries and industry associations will also contribute.

"Canada is not a large producer but we're at the stage where our line production is big enough to enter the export market in a much more strategic fashion," said Dan Paszkowski, the Canadian Vintners Association's president and chief operating officer. "And we think it's essential to go out there to have more people discover the distinct, high-quality, crisp and food-friendly wine that we made in a cool climate across our country."

The initiative began April 1 with the primary goals of boosting the international reputation of Canadian wine and increasing global recognition of Canada's wine regions. The core strategy involves promoting Canadian wine to influential media and wine trade representatives in a consistent way.

DFAIT's initial funding represents the approximately six percent value of wine in Canada's overall exports in 2007. The funds are part of existing resources to develop Canada's international business.

"In 2007, Canada's wine exports totalled nearly three-million litres (792,516 gallons), whose dollar value was approximately US$20.1 million (CAN$25 million)," said Renée David, DFAIT's trade media relations spokesperson. "The goal with the new initiative is to double the volume of exports of Canadian ice wine and premium table wine over the coming years."

All of this is expected to generate economic spinoffs in Canada's agricultural, tourism and domestic wine industries. "Canadians tend to pay more attention to wine that is recognized abroad for its quality," Paszkowski said.

The campaign builds on the export initiatives of individual and regional wineries in a more cohesive fashion, without hindering their efforts. "We'll never stop a company from exploring or developing a foreign market on its own," Paszkowski emphasized.

CVA first approached the Canadian government in December 2007 on behalf of its members. More than a year of regular meetings went into devising the new strategy.

"We looked at Australia, New Zealand and other countries that aren't that far ahead of us in terms of export growth but have national strategies that really helped their wineries move in tandem into exports," Paszkowski said. "While our strategy won't be about exporting volume, as it is in those countries, we felt we could learn from their approach in working as a team when visiting a particular city or country."

All wineries in Canada producing 100-percent Canadian grown, fermented and bottled grape-based wine are eligible to participate in the program's activities through their national or regional wine associations. DFAIT will also use its offices across the country and abroad to support efforts through the design and delivery of its wine programs and policies.

Under the program, export-ready wineries will increasingly enter prestigious wine fairs and competitions under the nation's banner. They will also participate at tastings, dinners and other promotional activities.

The initial focus will be limited to several key markets where Canadian wines are deemed to have the best chance of building a sustainable market. "Strategic tactics will ensure that the wine trade--agents, media, retailers, restaurants--get the Canadian wine story by experiencing it first-hand as much as possible," said David.   

"We're starting off by looking at cosmopolitan and trendsetting cities such as Chicago and New York where it's hoped our meetings with agents and white-linen restaurant decision-makers will build a higher profile for Canadian wine," Paszkowski added.

It hasn't escaped Canada's attention that the U.S. is expected to become the world's leading wine consumer by 2012 due to an increasing number of female consumers.

"The U.S. has some of the largest and easiest markets for us to enter as a young exporter because of its proximity, common language, existing affinity to the Canadian brand, understanding of our ice wine and ease in visiting our wine regions," Paszkowski said. "While some Canadian wines have already been listed, we don't think the market is saturated by any means."

It's hoped the efforts will pay off despite the current economic slump. "We recognize that our success might not be as big as it probably would have been as recently as six months ago, but there are sophisticated consumers in big cities willing to try new products," Paszkowski said. "It might also work to our advantage that our premium wines are still priced lower than some of their counterparts because we're not as well known yet."

Other first-year efforts will include hosting media and trade missions from China and the influential United Kingdom to Canadian wine regions.

The government's support in the export arena is expected to encourage additional mid-size wineries to examine their potential for selling abroad.

"Our hope is that we'll be able to get other companies export-ready over time and continue to build our industry through foreign sales," Paszkowski said.

--Julie Gedeon

Constellation Cuts Workforce by 5 Percent

Constellation Brands Inc., which employs about 8,000 people worldwide, has cut its workforce 5 percent and is lowering its profit outlook primarily due a drop in wine sales in Britain and Australia in late 2008.

Citing the global economic slowdown, the company expects to report profit of $1.60 to $1.62 a share for fiscal 2009, which ended in February. That's down from the company's estimate in January that its annual profit was $1.68 to $1.72 a share.

Constellation Brands said it had completed the $334 million sale of its value spirits business to New Orleans-based Sazerac Co. as it tries to focus on the more lucrative premium end of the wine and spirits markets. The sale of more than 40 vodka, gin, rum, schnapps, cordial and other liquor brands includes $274 million in cash and $60 million in debt financing by Constellation Brands. The company said it plans to use $210 million of the proceeds to pay down debt in fiscal 2010.

The company owns more than 250 wine, liquor and beer brands. Its fine wine division, Icon Estates, is based in St. Helena, California, and its premium wine business, VineOne, is based in San Francisco.

Kendall-Jackson, Foster's Wines Estates and Diageo have also made cuts in their workforce. Foster's said earlier this year that it would cut approximately 300 employees in the Americas and in Australia over 12 to 18 months.

California

Nickel and Dime Per Drink Bills Introduced

While a proposal to raise taxes on alcoholic beverages was ultimately not included in California's recently passed budget, new legislation that would raise taxes on wine, beer and spirits has nonetheless been introduced in the California legislature.

Assembly Bill 1019, introduced February 27 by Jim Beall, calls for a 10-cent-per-drink tax while SB 558, introduced the same day by Senator Mark DeSaulnier, would include a 5-cent fee.

Both are earmarked, meaning the funds would be dedicated for specific purposes and would not raise money for the state's general fund.

At press time, it will likely be a number of weeks before they are brought up in policy hearings, the next step in the legislative progress.

"It is not a surprise and it is unfortunate that we will have to spend a lot of time and effort on this when there are so many other huge issues," Karen Ross of the California Association of Winegrape Growers said.

AB 1019 would require wholesalers within the state who distribute alcoholic beverages to pay a 10-cent-per-drink surcharge, which would be used for alcohol and drug treatment--raising the excise tax to $2.76 per gallon according to Family Winemakers. As drafted it would require a two-thirds vote to pass. SB 558 authorizes the California ABC to collect a "fee" not to exceed a nickel per drink from everyone who sells alcoholic beverages and the funds would be earmarked for alcohol abuse programs.

More than 2,500 bills have been introduced in California since the beginning of the year.

Research Planned on New GWSS Insecticides

The California Department of Food and Agriculture's (CDFA) Pierce's Disease Control Program plans to spend up to $143,000 over the next two years to fund research to evaluate four additional contact insecticides for nursery stock treatments to kill glassy-winged sharpshooters (GWSS) prior to nursery shipments.

The research will be conducted by Dr. Rick Redak, entomologist at UC Riverside, whose previous research determined that carbaryl (Sevin) and fenpropathrin (Tame), now approved for nursery treatments, were successful in killing GWSS nymphs upon emergence. His research indicated that deltamethrin and acetamiprid killed recently emerged GWSS nymphs, but he was unable to document when mortality occurred.

The new trials, to begin this spring, will attempt to establish the timing of nymph mortality with these two chemicals. In addition, two new chemicals, spirotetramat and spinetoram, will be tested on GWSS in the new trials. These chemicals are registered for use in California on a broad range of sucking insects and are being used for treatments against the Asian Citrus Psyllid. CDFA officials are interested in finding additional chemicals for GWSS treatments due to concerns of possible pesticide resistance occurring with repeated use of just two chemicals and concerns about the availability of the two chemicals for use in the future.

In addition, Redak's new study will look at the individual and combined effects of these chemical treatments on GWSS parasites and the levels of chemical residue on treated plant material.

Maryland

New Report of Maryland Wine Industry Shows Over $50 Million Impact on State

The Maryland wine industry has a $50 million impact on the state, according to the industry's first economic impact study released by the Maryland Wineries Association. The report is a product of the Jacob France Institute of the University of Baltimore (JFI), and analyzes the economic importance--and the potential for barriers to growth--of Maryland wineries.

"This type of analysis is critical to understanding the relative importance of Maryland's wine industry to the state's rural economy," said Ray Brasfield, owner of Cygnus Wine Cellars and president of the Maryland Wineries Association.

This analysis was based on data provided by the Maryland Wineries Association from a survey of all Maryland wineries as well as data from the State of Maryland Alcohol and Tobacco Tax Bureau.

The economic impact estimates were generated using the IMPLAN model. The key findings of this analysis are as follows:

•   Maryland wineries generate $40.4 million in economic activity in the state of Maryland, support 348 jobs earning $10.9 million in salaries, and generate $3.3 million in state and local tax revenues.

•    Maryland wineries had direct revenues from winemaking and associated activities of $12.7 million. Based on the survey results, Maryland wineries employed an estimated 195 employees (including seasonal labor). The IMPLAN model estimates that Maryland wineries have regular (non-seasonal) employment of 37 full- and part-time workers.

•    An estimated 293,390 persons visited Maryland wineries or wine festivals and 63,861 (22 percent) of these visitors are from out of state. All visitors to Maryland wineries and wine festivals spend an estimated $20 million in Maryland, and out-of-state tourists attending Maryland wine festivals or visiting Maryland wineries account for 38 percent or $7.5 million of visitor spending; and

•    The sale of Maryland wines generates $7.4 million in distributor, retail and restaurant business activity.

For the full study, visit www.marylandwine.com/mwa/media/stories/economicstudy.shtml. For statistics on the Maryland wine industry,
visit www.marylandwine.com/mwa/learnmore/stats.shtml. wbm