Image provided by: University of Oregon Libraries; Eugene, OR
About The daily Astorian. (Astoria, Or.) 1961-current | View Entire Issue (Aug. 31, 2019)
A5 THE ASTORIAN • SATURDAY, AUGUST 31, 2019 Wine influences Oregon’s economy By SIERRA DAWN McCLAIN Capital Press McMINNVILLE — McMinnville, 1971. When a handful of pioneering farmers bought land on the outskirts of this modest rural town and decided to plant wine grapes, people called them crazy. Wine grapes wouldn’t grow in the Northwest, they said. Third Street in McMinnville, 2019. Peo- ple scuttle between high-end boutiques, local businesses and fi ne dining. Baskets of petunias hang from lamp posts like col- orful chandeliers. And on the corner where a JCPenney store once stood, there’s a wine tasting room. In this growing city where urban and rural worlds intersect, the wine industry has signed its autograph. In 2016 alone, Yamhill County, of which McMinnville is the seat, raked in more than $15 million in wine-re- lated property taxes. Michael Rogers, a resident of McMin- nville since 1976, has watched the transformation. “It’s been an incredible change,” he said . “We went from a small Oregon town with a bunch of turkey farms to a classy city of wineries.” McMinnville is one grape on the vine. Across Oregon, the industry has profoundly impacted the state’s economy and indirectly shaped its demographics and culture. The industry continues to grow. In 2010, according to the Oregon Vineyard and Win- ery Report, there were 567 vineyards state- wide. By 2017, that number more than dou- bled to 1,144. According to Full Glass Research, in 2016, the sum of all economic activity in Oregon related to wine was $5.6 billion. That means Oregon wine has a statewide economic impact of $177.89 per second. It’s not just measured by sales. Bruce Sorte, a retired economist from Oregon State University, said the impact is computed using a multiplier effect. Imagine throwing a stone into a pond and watching the concentric circles of ripples. The stone is the wine industry. The inner cir- cle represents direct effects — expenditures on wine. The middle circle represents indi- rect effects, such as payments to suppliers. The outer circle represents income-induced effects, which work like this: a vineyard laborer might spend part of his or her salary buying groceries. Even though the grocery store is not dependent on that one person’s purchase, the sum of many such payments impacts businesses and the overall economy. The wine industry has ripple effects that impact manufacturing, tourism, small busi- nesses, farmers, city infrastructure and the Sierra Dawn McClain/Capital Press A barrel and vines at White Rose Estate job market. Cooper, canner and glass bottle maker Morning sunlight illuminated three fi g- ures binding barrels under an awning. Fires crackled. Rick DeFerrari, master cooper at Ore- gon Barrel Works, rolled a barrel across his shop and hoisted it over a fi re to “toast” its interior — caramelizing the wood sugars to bring out sweetness in the wine. DeFarrari runs a cooperage with two assistants in McMinnville . They make about 520 barrels a year, selling 50% of them to winemakers. Oregon’s wine industry fuels many trades. The industry’s infl uence on manufac- turing, however, is often exaggerated, wine- makers said. Oregon has several custom crush facili- ties, and numerous steel manufacturers are based in the Northwest. Oregon wine label manufacturing had a 2016 value of $5.4 mil- lion, according to Full Glass Research. Yet most manufacturers are not based in Oregon, or even the U.S. “We don’t have the expertise, the know- how,” said Eric Baisch, manager of Davison Winery Supplies. “Most products are com- ing from Europe, where there are genera- tions of knowledge we don’t possess.” Location matters. Where manufacturing takes place has economic consequences. Robin Cross, an Oregon State Univer- sity economist specializing in wine econom- ics, said any time producers further process their goods, they’re increasing the economic impact. “Value-added goods increase a commod- ity’s impact on its local region,” said Cross. Hazelnuts are a good example. Cross said packaged, roasted hazelnuts processed in-state may have 20 times the economic impact on revenue and labor as raw nuts. “Wine works like that, too,” said Cross. “The more local the manufacturing, the big- ger the local impact. It’s about how close producers keep suppliers.” Farms and small businesses Moe Momtazi, owner of Maysara Winery and Momtazi Vineyard in the green hills of McMinnville, has seen fi rst-hand how food, wine and small businesses intertwine. In July, Momtazi said, a couple from Col- orado spent over $500,000 on their wedding at his vineyard — supporting the local cater- ing, bridal and fl oral industries. “Wine also brings people to the area who care about healthy food,” said Momtazi. He spoke with a deep Persian accent, leaning on his vowels and letting his R’s roll off his tongue. “That has ripple effects for restau- rants and natural farms.” He gestured to a spread in his winery — tart quince jam, crackers, sliced meats and strong cheeses. The air was thick with the heady scent of wine. Momtazi also represents the international spirit of the industry. In 1982, he and his wife, then eight months pregnant, fl ed Iran after the hostage crisis, escaping with the help of smugglers. In 1983, they arrived in the U.S., fi nally planting their roots in Ore- gon — literally — in 1990. Momtazi, previously an engineer, designed the vast winery himself. During offseasons, he and his workers labored three years to build the winery using wood and stone from Momtazi’s land. People behind the purple That’s where the wine industry has one of its biggest impacts — in Oregon’s labor force. Brett Miller, Northwest Wine Co.’s mar- keting director, cruised up the vineyard slope at Hyland Estates on his ATV, past rows of grapes planted in geometric shapes on the hillside like a great green puzzle. Among the vines, laborers worked under sunhats and long sleeves. “It’s hard work,” said Miller, who has labored many seasons in vineyards. “Long hours. Wet. Very sticky. But it’s fun.” Hyland, like most vineyards, employs primarily Latino workers through labor con- tractors. Most come from Oaxaca, Mexico’s second-poorest state. Agricultural labor is scarce, and Oregon winemakers say it is their biggest challenge and expense. Vineyards must offer competi- tive wages. The typical Hyland laborer, said winemaker Bruno Corneaux, makes $15 hourly. The wine industry’s impact on labor begins in the fi eld, but it doesn’t end there. According to Full Glass Research, in 2016, the number of wine-related and -induced jobs in Oregon was 29,738. Related wages topped $1 billion. To grasp the scope, look how one winery impacts jobs. Hyland Estates employs about 30 vine- yard workers and 45 winery and cellar work- ers, most year-round and full-time. Around harvest time, Hyland contracts 50 seasonal laborers. That’s 125 total annual workers. Sorte, the Oregon State economist, uses IMPLAN, a computer model, to generate economic estimates. Sorte said the wine industry’s multiplier for employment is 2.75. That means for every one job created within the wine industry, one other related job like manufacturing is created and three-quar- ters of a job is created through an induced effect, such as a restaurant job. If you multi- ply 125 workers by 2.75, you get 344. That means Hyland Estates alone creates almost 344 jobs. Not just a drop in the barrel Oregon’s growing wine industry consti- tutes a tiny fraction of the international wine supply. P rior to the 1970s, Oregon’s climate was too cold to grow most winegrapes. “Climate change has made Oregon suitable to grow- ing grapes,” said Gregory Jones, director of the Evenstad Center for Wine Education at Linfi eld College in McMinnville and part of the family-run Abacela Winery in Rose- burg. “Pinot noir has a narrow climate niche. We’re in the sweet spot right now, but if we get a few degrees hotter, that may change.” Because Oregon’s wine industry is com- paratively young, its share of the national market is 1%, dwarfed by wine-producing behemoths such as California. The 4-H and FFA Youth of Clatsop County wish to express their appreciation to the following buyers for making the 2019 Clatsop County Junior Market Auction a BIG SUCCESS! A1 Ready Mix Ag-Bag Forage Solutions Aldrich Point Dairy ALM Securities, Inc Anderson, Thal & Carole Astoria Dairy Queen Autio Company Baker’s General Store Balensifer Fisheries Bergeson Family Bergman Construction Bernhard Family Biederman Family Big Island Ranch Bigelow Transport Blind Slough Cattle Co. BMFIC Bornstein Seafood’s Brian K Meier Trucking Brim Aviation Brim’s Farm & Garden Buoy Beer Company Campbell, Kim Carlson, Steve Cary Johnson Custom Homes Christensen, Thomas & Stephanie Clatsop Distributing Coastal Farm & Ranch Columbia Memorial Hospital Columbia Pacific Chiropractic Columbia River Bar Pilots Cowan Dairy Curtis Tractor & Machines DB Trucking Del’s Ok Tire Point S Dennis Horton Trucking Denver Pt. Land & Timber DiBartolomeo, Joe Double A Construction Dr. Hunter DVM Eliza Hunsinger Fisheries Emerald Trucking Engbretson Fishing Englund Marine & Industrial Supply Co. F & B Logging Finn Family Farm Fishhawk Fisheries Fort George Brewery & Public House Fresh, Rob Fultano’s Pizza-Astoria Gateway Community Church Hampton Lumber–Warrenton Helligso Construction Hollenbeck Properties Holly Families Hunsinger Fish J&S Appliance & Home Furnishings Jarvis, Wayne Jewell School District Jim Gedenberg Log Trucking Johnson, Betsy, Senator K & M Medivan Kancharla’s Adult Foster Home Kelly Family Kinney & Sons Klemp Family Dentistry Klemp Optometry Knife River Knutsen Insurance Larsen, Justin Lawrence Oil Co Layman, Phil & Judy Lewis & Clark Bank Lewis & Clark Tree Farms, Greenwood Resources Linder, Jeremy & Kallie Lum’s Auto Center Manna Movers LLC Maverick Seafoods Mays Land & Livestock Meier, Matt & Jamee Miller, John Morgan, Nellie Morgan, Robert Morisse Logging North Coast Truck Parts Northwest Ready Mix Nygaard Logging O’Grady, Pat Olney Saloon & Olney General Store Pape Machinery Phillips, Matt & Bree Pig-n-Pancake-Seaside Reed & Hertig Packing Rickenbach Construction Rohne, Dirk & Amanda Round Rock Ranch Safeway - Astoria Samuelson, Matt Seppa, Brent & Julie Seppa, Mike & Jeanne SISU Brewing Company Springer’s Garage Stahancyk, Kent & Hook Starley Family Dentistry Stemper, Randy Teevin Bros. Land/Timber Two Old Goats Farm & Feed Versa Corporation Wadsworth Electric Wallace, Carter Walluski Valley Fine Swine Warila Polled Herefords Warrenton Fiber Weyerhaeuser Columbia Timberland White’s Heating & Sheet Metal Wickiup Ridge Construction Wilco Wilcox & Flegel Oil Co. Williams, Ty Youngs River Trees Add-Ons: Thank you to the numerous Add-On contributors GRAND CHAMPION FFA MARKET: Lamb GRAND CHAMPION 4-H MARKET: Lamb GRAND CHAMPION FFA MARKET: Steer GRAND CHAMPION 4-H MARKET: Steer GRAND CHAMPION FFA MARKET: Swine SELLER: Ali Clark BUYER: Wilcox & Flegel Oil SELLER: Rylee Pierce BUYER: Klemp Family Dentistry SELLER: Jameson Linder BUYER: K&M Medivan SELLER: Jack Phillips BUYER: Autio Company SELLER: Marlee Walter BUYER: Brim’s Farm & Garden GRAND CHAMPION 4-H MARKET: Swine GRAND CHAMPION 4-H MARKET: Goat GRAND CHAMPION FFA MARKET: Goat GRAND CHAMPION 4-H MARKET: Turkey GRAND CHAMPION FFA MARKET: Turkey SELLER: Katie Jo Strimple-Fields BUYER: ALM Securities, Inc SELLER: Jameson Linder BUYER: Aldrich Point Dairy SELLER: Marlee Walter BUYER: Dr. Hunter DVM GRAND CHAMPION 4-H MARKET: Poultry Fryer Pen GRAND CHAMPION 4-H MARKET:Poultry Roaster Pen GRAND CHAMPION 4-H MARKET: Goose SELLER: Emily Bergerson SELLER: Marlee Walter BUYER: Bernhard Family BUYER: Kallie & Jeremy Linder A big Thank you to these businesses that paid A Special the commission fees for the market auction. THANK YOU to: SELLER: Bailey Bartlett BUYER: Biederman Family SELLER: Jaxson Brim BUYER: Brim’s Farm & Garden SELLER: Matthew Cano BUYER: Klemp Family Dentistry Kelby Maria Photography Drs. Hunter and Ramsey DVM Lewis & Clark Bank Astoria Rotary Club
