December 6, 2006

GRAND RAPIDS - The Michigan Commission of Agriculture today received highlights of a national study which finds that the state's grape and wine industry generates $750 million annually and supports employment of approximately 5,000 Michigan residents. The preliminary results on the economic impact of Michigan's wine, grape and grape juice industry were presented at the Grape Industries Luncheon in Grand Rapids.

"The wine industry is one of the fastest growing sectors in Michigan agriculture and it is exciting to see our wines compete successfully at the national level," said Mitch Irwin, Michigan Department of Agriculture director and chair of the state's Grape & Wine Industry Council. "While the juice grape industry is currently facing global price pressures, our state will continue to strive for an economic climate that allows it to prosper.”

Michigan was the fourth largest grape producer in the United States in 2005 with approximately 465 grape farms producing a state record 102,000 tons. More than 90 percent of Michigan's grapes are used for grape juice, making Michigan the leading producer of Niagara grapes for white grape juice and the third largest producer of Concord grapes for red grape juice. Michigan also is a major processor of grapes with large facilities in West Michigan for the production of grape juice products and wine. Adding processing value to the farm gate value of the grape crop is a significant contributor to the industry's economic impact.

"Our studies of several states' economies clearly show the importance of grape and wine industries to several states,” said Barbara Insel, Managing Director for MKF Research of California.

The state's winemaking history spans two centuries and all corners of the state with wineries in 17 of Michigan's 83 counties. Michigan's wine production has experienced tremendous growth over the past decade, more than doubling total production in that time period.

An important element in the overall economic impact of winemaking in Michigan is tourism. Approximately 800,000 tourists visited Michigan's 45 wineries in 2005 with an overall direct effect on the economy of $8.6 million.

For more information on Michigan's grape and wine industry, visit: www.michiganwines.com. To receive a copy of the Economic Impact Preliminary Report, call (517) 241-4468.