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Extension > Regional Sustainable Development Partnerships > Southeast > Sustainable Agriculture and Food Systems > Economic Impact Study of Minnesota's Grape and Wine Industry

Economic Impact Study of Minnesota's Grape and Wine Industry

Project files

Purpose

To produce an economic impact study of Minnesota’s grape and wine industry

Partners

The Northwest, Southeast and West Central Regional Partnerships co-sponsored the
study by the UM Department of Applied Economics for the Minnesota Grape Growers
Association (MGGA). Department of Applied Economics researchers were Dr. William
Gartner and Brigid Tuck, Research Fellow. Dan Erkkila with the UM North Central
Research & Outreach Center provided input into developing the economic impact
model. MGGA provided contact information of grape and wine growers to be surveyed.
The research was guided by a Technical Advisory Panel consisting of MGGA members
and UM specialists in grape production, wine-making and tourism.

Activities

  • Conducted a web-based survey of Minnesota’s grape growers
  • Conducted a web-based survey of Minnesota’s wineries
  • Produced a final report on Minnesota grape growers and wineries
  • The researchers are preparing peer-reviewed journal articles

Outcomes

  • The grape and wine industry in Minnesota is a young industry undergoing rapid change. This report serves as a measure of the industry in its current state. It quantifies the current size of the industry, its projected growth, and the total economic contribution of the industry to the state of Minnesota.
  • Wineries spent a total of $5,107,920 in Minnesota in 2007, creating a total increase in the economy of $8.5 million. Associated with this level of output were 68 jobs.
  • The researchers calculated that grape growers spent $8,030,465 on inputs in the state of Minnesota in 2007. Grape growers directly helped to create 57 jobs in Minnesota.
  • From questions on the winery survey, researchers calculated that total spending by non-local, day-trip visitors to winery events in 2007 was $8,861,918. Winery tourism created a total of 155 jobs for Minnesotans.

Funding

Northwest RSDP: $4,000
Southeast RSDP: $8,000
West Central RSDP: $8,000

Leveraged resources

MGGA: $12,000
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