10 CapitalPress.com February 19, 2016 Washington Study: Potatoes net state $7.42B annually By MATTHEW WEAVER Capital Press The Washington potato industry contributes $7.42 bil- lion to the state’s economy, a recent study from the Wash- ington State Potato Commis- sion inds. The study, conducted for the commission by Washing- ton State University’s IM- PACT Center, also reports: • The industry creates 35,860 jobs throughout the state. • Every job directly creat- ed supports an additional 5.1 jobs in the state’s economy. • The industry contributes $1.83 billion in labor income. • For every dollar of raw potato production and pro- cessing, $2.40 is generated in the local economy. The study examined the economic output from the state’s potato farming, fro- zen potato processing, fresh packed potatoes, dehydrated potato products and potato chip manufacturing sectors. “I knew potatoes were a big thing in Washington state — we grow them big and they have a big economic impact,” said Chris Voigt, ex- ecutive director of the com- mission. But Voigt said the igures were higher than he expected. “It really emphasizes the point that all of agriculture in Washington is big, a lot bigger than I think people normally think of,” he said. Voigt attributed the high numbers to potato processing and export markets. Roughly 90 percent of the state crop is processed, and roughly 50 to 60 percent is exported, he said. The study used igures from 2014, said Matt Harris, director of government af- Matthew Weaver/Capital Press Washington State Potato Commission Executive Director Chris Voigt emcees the annual potato peeling contest during the Washington-Oregon Potato Con- ference Jan. 26 in Kennewick, Wash. The commission recently released a study that inds pota- toes have a $7.42 billion impact on the state’s economy. fairs for the commission. The data collection occurred prior to last year’s port slowdown. The commission estimates a loss of more than $50 million in frozen products from the four-month labor dispute. A forthcoming study ex- amines the total economic loss to the state as a result of the port labor issues, Harris said. He expects a igure of roughly $750 million. “It’s shocking what that four-month period cost Wash- ington state,” Harris said. “That’s something that has to be talked about.” The number of jobs impact- ed by the potato industry grew from roughly 25,000 in the last study, conducted in 2008, Har- ris said. “There is a signiicant amount of revenue being earned on an annual basis from people directly and indirectly touching a potato,” Harris said. Having the study will help when speaking with decision makers and legislators, Harris said. “People like to see the pos- itive impact that an ag group has in its local community,” he said. “We want to make sure people understand that we have to have the right business atmosphere for our farms to keep this economic model growing.” Voigt said the commission used a draft of the igures during a recent visit to leg- islators in Olympia, and will take the study to a meeting in Washington, D.C. “These numbers really re- inforce that agriculture is im- portant to the state, and we re- ally have to be good stewards of agriculture, make sure it’s a good business environment for our farmers to operate,” he said. “Once we start turn- ing the tide against farmers, we potentially could lose a lot of economic opportunities for the state.” Potatoes are the fourth-largest crop in the state, behind apples, wheat and dairy. Roughly 300 po- tato growers plant more than 160,000 acres annually, har- vesting 30 tons per acre on average. The state produces 20 percent of all U.S. pota- toes, according to the com- mission. Premium wines hold opportunity, grape growers told By DAN WHEAT Capital Press KENNEWICK, Wash. — The world wine market is basically in balance but it is slightly oversupplied with generic value wines and a bit short of pre- mium wines, a global wine broker says. “The oppor- tunity is at the Livengood premium end,” Greg Livengood, a partner in Ciatti Co., a global wine and grape broker, told the Wash- ington Association of Wine Grape Growers annual meet- ing Feb. 10. That’s seems a good it for Washington vintners, who produce a lot of premium quality wine. The strong U.S. dollar is attracting more imported wine, which is becoming a bigger threat, Livengood said. The U.S. has become the world’s top wine consumer followed in order by France, Italy, Germany, China, the United Kingdom, Russia, Ar- gentina, Spain and Australia, he said. Dan Wheat/Capital Press Marivel Cruz is bundled up to stay warm as she prunes grape vines in a Zirkle Fruit Co. vineyard at Mattawa, Wash., on Feb. 10. Growers held their annual meeting the same day 65 miles to the south in Kennewick. “Everyone wants to sell here. We represent 5 percent of the world population so there is opportunity for an awful lot of wine consumers as the middle class grows in other countries,” said Brett Scallan, vice president of marketing at Ste. Michelle Wine Estates, Woodinville, Washington’s largest winery. In spite of economic ups IN M! W A O SH N E R G and downs in the world, Ste. Michelle increased exports 30 percent last year, Scallan said. Canada, Europe and Asia all offer opportunities, he said. Livengood said consump- tion is dropping in Europe because of an aging popula- tion. Many of the same coun- tries that consume wine pro- duce 80 percent of the world’s wine: France, 17 percent; Italy, 16 percent; Spain, 15 percent; U.S., 8 percent; Ar- gentina 6 percent; and Chile, China, South Africa and Aus- tralia at 4 percent each, Liven- good said. Total acreage in produc- tion declined from 2000 through 2011 and new plant- ings are better grape produc- ers, he said. Italy produced 8.2 million crush tons in 2013 and 7.5 million in 2015 with France and Spain a little less and the U.S. less yet at 4.5 million crush tons in 2013 and 3.9 million in 2015. There isn’t a lot of excess inventory in Italy and there’s concern about the 2016 crop because of a warm winter and lack of rain, Livengood said. France has more inventory, but a warm winter is causing fears of early bud break, frost and disease. Spain also is con- cerned about crop size due to a warm winter, he said. Australia has an oversup- ply and desperately wants back into the U.S., he said. Washington, second only to California in wine and wine grape production in the U.S., produced 222,000 tons of wine grapes in 2015, the Na- tional Agricultural Statistics Service reported Feb. 9. That was down 2 percent from 2014. Red varieties were up 5 percent and whites were down 8 percent. Of the top four producing varieties, Cabernet Sauvignon showed the largest increase, up 12 percent from 2014. Growers received an average of $1,145 per ton for all vari- eties in 2015, up $35 from the previous year. Washington has 350- plus growers, approximately 50,000 wine grape acres and more than 850 wineries pro- ducing about 16 million cases of wine a year. Winery reve- nue is estimated at $1 billion annually by the state wine commission. PROSSER, Wash. — The late Charles Nagel, a Washing- ton State University food sci- entist, has been selected as the 2016 inductee into the Legends of Washington Wine Hall of Fame. The Walter Clore Wine & Culinary Center will honor Na- gel with the posthumous award during the Legends of Washing- ton wine gala at the center on Aug. 12. Nagel was born in Califor- nia and received his bachelor’s degree in bacteriology from University of California-Berke- ley, in 1950, followed by his doctorate in microbiology from UC-Davis in 1960. He joined WSU as an assistant professor of horticulture. His early work was a study of the effect of sugar on the perception of acidity in wines and juices. He joined United Vintners in California and then returned to WSU in 1974 as a professor and food scientist and retired in 1993. He died in 2007. Nagel was an important igure in the earli- est days of Washington’s wine industry, working closely with Walter Clore and George Carter, making and testing wines from experimental vineyards. Starting in 1964, Nagel coor- dinated consumer tasting panels, comprised of WSU faculty and spouses in Pullman, to evaluate the experimental wines. This early feedback helped shape the foundation of the industry. Many of the exercises used to- day originated from Nagel’s pioneering research, laboratory work and instruction. In his later career, Nagel touched many early winemakers as he became “the undisputed voice of authority on matters related to wine science and tech- nical issues,” said Rob Grifin of Barnard Grifin Winery in Richland. Nagel was a “present and active source of information and support at a time when Washington wine was generally unknown and only grudgingly accepted,” Grifin said. Rick Small, of Woodward Canyon Winery in Lowden, and Kay Simon, of Chinook Wines in Prosser, also praised Nagel’s service. Nagel is the 12th recipient of the award. A bronze likeness of each is displayed at the Walter Clore Wine & Culinary Center in Prosser. — Dan Wheat Revised hemp bill moves toward Senate vote Ag department to control crop’s introduction By DON JENKINS Capital Press OLYMPIA — The Wash- ington State Department of Ag- riculture would license hemp farmers under a bill that’s ready for a vote by the full Senate. After several years of frustra- tion, hemp lobbyist Joy Becker- man said Wednesday that she thinks lawmakers and WSDA have found the right way to nur- ture the cannabis crop. “This is the responsible route to take,” she said. “Our department of agriculture has gotten impressively sophisti- cated year by year.” Although Washington is only one of four states that allows recreational marijua- na, it has not been among the two dozen states that have le- galized cultivating hemp. The Drug Enforcement Agency ar- gues hemp and marijuana are the same plant, distinguishable only by chemical tests for psychoactive traits that easily change over time. The Legislature has con- sidered and ultimately rejected bills that would simply declare hemp a legal crop or require WSDA to provide extensive oversight. The proposals have been criticized for being too expensive or too simplistic. Senate Bill 6206 would line up closely with the 2014 Farm Bill, which loosened the feder- al stance toward hemp and au- thorized state-supervised hemp “research.” Under SB 6206, WSDA would license hemp farm- ers, control the seed supply and check whether cultivated plants retained very low levels of THC, the psychoactive sub- stance in marijuana. Washington State Universi- ty, meanwhile, would study the commercial potential for hemp and whether hemp could spread diseases harmful to related spe- cies, such as hops. WSDA estimates it will need $145,000 from law- makers to set up the program, which could be in place by the 2017 growing season. The rule-making will include set- ting fees, grower qualiica- tions and limits on acres. SAGE Fact #127 ROP-8-2-1/#14 In 1906, F. Gilbert “Big” Lamb developed a method of cutting French fries by sending potatoes at high speed through a special knife. Eventually, Lamb invented and patented the Lamb Water Gun Knife that is now the industry standard worldwide. 8-1/#6 8-2/#7 Commission to decision-makers: Keep good business atmosphere alive for industry Nagel posthumously joins Wine Hall of Fame