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Economics Of The U.S. Wine Term Paper

The state of Virginia may be considered a pioneer in wine making in that the very first wine cultivation experiments for the purpose of wine making were held here in the early 1600 (Biancalana 2002). By the end of the 1800s, Virginia was already an important wine-producing state, although interrupted by prohibitionism. The industry was revived by local produces and investors who started investing on quality production again in the early 70s. Its present focus is mainly on Chardonnay, although the state also produces local varieties and hybrids as do other states in the east coast. Among its most important white hybrids are Seyval Blanc, Vidal Blanc and red hybrids Norton and Chambourcin. It also cultivates European species like Chardonnay, Riesling and Viognier for white species and Cabernet Franc, Cabernet Sauvignon, Merlot and Barbera for red species. The most important wine areas in Virginia are Eastern Shore, Shenandoah Valley, Northern Neck, North Fork of Roanoke, Rocky Knob and Monticello (Biancalana).

Other wine-producing states are Arizona for its Carbernet Sauvignon and Cabernet Franc; Missouri for its Norton grape; Pennsylvania for its Chardonnay and Pinot Noir; Rhode Island for its Gewurztraminer; and Ohio for its Cabernet Sauvignon, Chardonnay and Riesling, especially grown in the Lake Erie area (Biancalana 2002).

The Congressional Wine Caucus listed a number of challenges as well as opportunities now confronting the grape, wine and grape products industries (Insel et al. 2007). The challenges included insufficient federal funding of research and education to insure long-term growth; shortage of skilled labor in all the areas of the industry; inherent climatic risks; soft demand for grapes grown for grape juice; increasing competitive pressures in the market; a changing market for wine grapes; a shortage of certain types of wine grapes; and lack of access to affordable capital for start-up or expanding enterprises (Insel).

Nonetheless,...

2007). These are the evident leadership demonstrated by the grape and wine industry in proposing and adopting sustainable agricultural practices, its increased level of professionalism, and the rapidly improving quality of grape and wine products. The key opportunities cited by the caucus included a growing market in the U.S., health benefits associated with the consumption of grapes and grape products, the growth of wine tourism in rural areas in practically every state, community support and charitable donations, and direct-to-market wine shipments within and between states. It noted a growing market on account of demographics, consumer values, retail and restaurant promotions and high awareness of the health benefits of moderate intakes of wine. These health benefits indicated potentials of greatly increasing the market share of wine and grape products as national trends showed continuously increasing consumer interest in nutrition and healthful foods to economize on health costs and to improve quality of life. The spread of wine tourism in virtually all states has also benefited local economies. In the meantime, community support amounted to a $128 million contribution in 2005. Direct-to-market shipments within states and between many states increased consumer access, market opportunities for wineries and cooperation among organizations and businesses in the industry on a nationwide scale. (Insel et al.).
Bibliography

Biancalana, a (2002). United States of America. ABC Wine: DiWine Taste. 11 pages. Retrieved February 1, 2007 at http://www.diwinetaste.com/dwt/en200622.pdf

2. Geisler, M. (2006). Wine industry profile. Agriculture. 5 pages. Marketing Resource Center

Insel B, et al. (2007). U.S. wine, grapes, and grape products contribute $162 billion to economy. Wine Institute. 4 pages. Retrieved February 1, 2007…

Sources used in this document:
Bibliography

Biancalana, a (2002). United States of America. ABC Wine: DiWine Taste. 11 pages. Retrieved February 1, 2007 at http://www.diwinetaste.com/dwt/en200622.pdf

2. Geisler, M. (2006). Wine industry profile. Agriculture. 5 pages. Marketing Resource Center

Insel B, et al. (2007). U.S. wine, grapes, and grape products contribute $162 billion to economy. Wine Institute. 4 pages. Retrieved February 1, 2007 at http://www.wineinstitute.org/industry/statistics/2006/us_wine_economic_impact.php

Summer, D.A. et al. (2001). An economic survey of the wine and the winegrape industry in the U.S.A. And Canada. University of California. 35 pages.
Retrieved February 1, 2007 at http://aic.ucdavis.edu/research1/Winegrape.pdf
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