In a landmark trade deal, U.S. and Canadian wine growers forged an agreement where Washington state wineries sent large quantities of American grapes to British Columbia (B.C.). This came after a catastrophic event in January 2024, where freezing temperatures wiped out 90% of B.C.’s grape harvest. The freezing weather killed many vines, significantly impacting the Okanagan Valley, a key region for B.C.’s wine production.
The January freeze in B.C. caused extensive damage to the Okanagan Valley, home to 86% of the province’s wine output. The freeze lasted five nights and severely affected the vines, leading to a staggering $254.7 million in losses for wineries and growers. Support industries, such as labor for grape pickers and hotel staff, also faced severe economic setbacks, totaling an additional $72.9 million in damages.
Washington’s Grape Surplus Amid Strong Harvest
Meanwhile, Washington State experienced a bumper crop of grapes in 2023, with excellent growing conditions. Ste Michelle Wine Estates, the state’s largest wine producer, had reduced grape purchases by 40%. As a result, many Washington growers found themselves with surplus grapes, ready to be sold. The surplus led to discussions about cross-border trade, helping to alleviate some of the struggles faced by B.C. wineries.
The Washington Winegrowers Association created a guide to help navigate the complex state and federal regulations surrounding grape shipments. Despite the challenges, Washington growers were eager to assist their Canadian counterparts, though it took months for the Canadian government to approve the shipment of out-of-province grapes without imposing tax markups. Canadian winemakers pressed ahead with grape deals, though the process faced significant delays.
The Long Road to Recovery for B.C.’s Wine Industry
The freeze’s devastating impact on B.C.’s vineyards presents an existential threat to the region’s wine industry. The replanting of dead vines will take years and cost millions of dollars. Given that it takes three to four years for newly planted vines to yield productive harvests, recovery could take a decade. This has led to some wineries closing or selling, with 25% of Okanagan wineries already for sale.
Despite the setbacks, winemakers in B.C. are showing resilience, relying on cooperation with Washington state growers. American vineyards, such as those in Lake Chelan and Prosser, offered grapes at below-market prices to help Canadian winemakers survive. The cross-border cooperation is a testament to the solidarity in the wine community, with Canadian winemakers traveling to Washington to oversee the grape shipments, showcasing a spirit of unity despite the challenges.