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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