More provincial, federal support needed after cold snap devastated vines, say B.C. winemakers

B.C. winemakersare urging both thefederal and provincial governments to provide additional support to help mitigate financial losses caused by a severe cold snap in the province last winter, which they say devastated vines.

At a press conferenceat Spearhead Winery in Kelowna, B.C., industry representatives gathered to highlight the impact that December's freeze whichsaw temperatures in the Okanagan plummet to -30 C had on vineyards, harvests, revenues and jobs.

According to Miles Prodan,president and CEO of Wine Growers British Columbia (WGBC), the cold snap's repercussionscould result in a39- to 56-per-centreduction of this year's grape and wine production, leading to direct revenue losses of about $133 million for B.C.'s wine industry.

While the federal government has the AgriRecovery program to assist farmers after natural disasters, WGBC says the program primarily helps grape growers and offers limited support to wineries.

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B.C. grape growers are blaming extreme weather for reduced production. In areas of the valley where temperatures dipped closer to minus 30 C, up to 100 per cent of the buds are damaged.

The association also said the Perennial Crop Renewal Program, launched two months ago by B.C.'s Ministry of Agriculture to help farmers replant vineyards with more resilient and climate-friendly crops, has been oversubscribed, and that many winemakershave been unable to access the programsince its inception in April.

"We need help what we really need is Victoria to bring Ottawa to the table," Prodan said.

Provincial insurance not enough: winemakers

A survey commissioned by WGBC, published this month, concluded the "climate change-related" freeze could lead to the loss of 381 jobs, a 20 per cent reduction in the industry's workforce.

The survey also found that theextreme weather has resulted inover $200 million in indirect economic revenue loss to B.C. Liquor stores and restaurants;a 54 per cent reduction in grape and wine production for the 2023 vintage, with long-term damage to 45 per cent of the Okanagan's planted grape crop; and29 per cent of vines needingreplacement due to the cold snap.

The grape varieties most affected by the adverse weather conditions includesyrah, merlotand cabernet sauvignon.

Dapinder Gill,general manager of Kismet Estate Winery in Oliver, B.C., said although the winery has had insurance coverage for 25 years, it has not been sufficient to coverthe damages caused by last winter's extreme weather.

Gill said the provincial agricultural production insurance program and Perennial Crop Renewal program have not been helpful.

"The insurance program hasn't been updated over the years of how it's supposed to cover growers," he said.

"We are being paid about $7.5 per plant, and this has been the same for the last 10 to 15 years, and the cost of planting a single plant has increased to about $15 a plant.

"We're being told you're not getting covered through the Perennial program because you have insurance, and the insurance is not covering enough, so we're being short-handed on both sides."

David Paterson, general manager of Tantalus Vineyards in Kelowna, echoed concerns regarding the provincial agricultural production insurance program, saying it fails to adequately cover all costs associated with crop replanting.

"[The insurance program] definitely needs to be revamped it's quite antiquated, and basically just covers the cost of the plants from the nursery but does not take into account any of the labour, water [and] fertilizer," he said.

Paterson also expressed worrythe reduction in wine production would lead to wineries closing tasting rooms, resulting in further revenue loss.

In an emailed statement to CBC News, B.C.'s agriculture ministrydid not directly respond to the wine industry's concerns regarding its agricultural production insurance program.

Instead, the ministry mentioned alternative provincial programsto support wineries and grape growers, including those offering international marketing assistance.

The ministry also saidwineries and grape growers have the option to apply for AgriStability insurance, which is co-administered by the federal and provincial governments and protects farmers against large declinesin agricultural income. The deadline for applications has been extended until June 30.

CBC News hasreached out to Agriculture and Agri-Food Canada for comment but has notheard back bypublication time.