# Officials Seek Solutions After Refresco Terminates Grape Contracts

Refresco abruptly terminated grape purchase contracts in March 2026 affecting over 100 grape growers in Pennsylvania and New York, leaving them with surplus crops and no buyer. Pennsylvania Secretary of Agriculture Russell Redding and U.S. Representative Mike Kelly are actively engaging with stakeholders to address the economic impact. They are pursuing short-term procurement actions such as federal and state purchases of surplus grape juice for nutrition assistance programs through USDA and state agencies, alongside exploring long-term support via farm restructuring grants. Contract reinstatement before the 2027 production cycle is unlikely, creating immediate procurement opportunities for contractors in agricultural supply and food assistance sectors.

- **Key agencies involved:** Pennsylvania Department of Agriculture and U.S. Department of Agriculture (USDA) are central to coordinating relief purchases and grant programs.
- **Why this matters:** Procurement professionals should note emerging federal and state purchasing opportunities for grape juice to support nutrition programs, as well as potential grant-funded projects aimed at stabilizing the regional grape industry.
- **Actionable insights:** Contractors specializing in agricultural products, food processing, and nutrition program supply chains can evaluate participation in upcoming USDA and state solicitations.
- **Long-term implications:** Businesses should monitor grant programs and restructuring initiatives designed to support growers, which may generate additional contracting opportunities beyond immediate purchases.

**Jurisdictions:** sled
**Industries:** Healthcare, Energy & Utilities
**Topics:** Grants & Funding, Physical Infrastructure
**Published:** May 12, 2026

### Government Entities
- Pennsylvania Department of Agriculture
- U.S. Department of Agriculture (USDA)
- U.S. Congress

### Vendors
- Refresco (buyer/contractor)

### Key Quotes
> Their response to the letter by the way was Sorry, we cant honor the contracts, but we will stay engaged with you in the grower community about the future, We took that as a positive sign, again, they couldve walked away and said, Nope, were done.
> — Russell Redding, Pennsylvania Secretary of Agriculture

> What I would tell people is let us know. Bring us into the thinking audit, and we will work with you, and if theres something we can do on the federal level, then were going to do that to help you. If its to find another customer, thats fine. if its to find another use for the product, thats fine too.
> — Mike Kelly, U.S. Representative

### Sources
- [Government officials hear back from Refresco after grape contract termination](https://www.yourerie.com/news/local-news/government-officials-hear-back-from-refresco-after-grape-contract-termination) - yourerie.com
- [Government officials hear back from Refresco after grape contract termination](https://www.2822news.com/news/state-news/government-officials-hear-back-from-refresco-after-grape-contract-termination/amp) - 28/22 News
- [Government officials hear back from Refresco after grape contract termination](https://www.msn.com/en-us/foodanddrink/foodnews/government-officials-hear-back-from-refresco-after-grape-contract-termination/ar-AA22CeuX) - MSN