Sam Landis, president of the Pennsylvania Winery Association, says that the real value of the state wine industry runs much deeper than this study, because vineyards and wineries help preserve and maintain farmland throughout Pennsylvania as seen here at French Creek Ridge Vineyards.

Harrisburg, Pa.--It was good news for the Pennsylvania wine industry, the economy, and for the state’s taxing authorities when the latest study from MKF Research showed that the Pennsylvania wine and grape industry had increased its contribution to the state’s economic strength.

During the two year period from 2005 to 2007, tthe wine and grape industry’s economic impact increased by 31%, from $661 million to $870 million. Wine production at the state’s wineries grew by more than 13%. When combined with the value of Pennsylvania’s juice grape industry, the impact for all grapes and grape products exceeded $2.35 billion.

The independent MKF study, commissioned by the Pennsylvania Wine Marketing Research Board, was based on research performed in 2007. MKF Research is located in St. Helena, Calif., and has completed economic impact studies for the grape and wine industries of many states. A previous MKF study for Pennsylvania, limited to wine and winegrapes only, had been released three years ago utilizing 2005 figures.

Over the two year period from 2005 to 2007, the number of wineries in Pennsylvania increased from 104 to 114. Wine production increased from 340,000 cases in 2005 to 387,000 cases in 2007. The Pennsylvania wine industry is primarily composed of smaller wineries making less than 20,000 gallons annually; the 14 wineries in the 20,000 to 70,000 gallons size range make 59% of the state’s wines. With a total of 920,000 gallons produced in 2007, Pennsylvania moved up from eighth to seventh place among wine producing states in the United States.

Pennsylvania has 12,100 acres of vineyards, most of them planted with juice grapes in Erie County in the northwestern part of the state. Winegrape acreage increased from 1,800 acres in 2005 to 2,000 in 2007, and the number of winegrape growers from 150 in 2005 to approximately 195 in 2007. Statewide, the combined total of winegrape and juice grape growers is about 230.

Pennsylvania is the fifth largest producer of winegrapes in the U.S., and the third largest producer of juice grapes.

In terms of tonnage, 14,500 tons of winegrapes were harvested in 2007 with a crop value of $7.03 million. The tonnage was higher in  2005, totaling 16,200, but the crop value of $6.64 million was lower. Pennsylvania was the third largest producer of juice grapes in 2007: 83,500 tons with a farmgate value of $13.5 million.

A major element in Pennsylvania’s overall wine economic impact is tourism. It is estimated that 894,000 tourists visited Pennsylvania in 2007, a slight increase from 877,000 in 2005.Tourism expenditures were $179.6 million in 2007 as opposed to $166.5 million in 2005.

Other statistics released by MKF Research regarding the impact of wine, grapes and grape juice on the state’s economy include 10,537 jobs, $472 million in wages paid, and $252.5 million paid in state and local taxes. While the measure of total economic impact is now $2.35 billion, when intangible benefits are added the total impact is much greater. These include overall enhanced quality of life, limitation of urban sprawl, and greater visibility for the state worldwide.

Sam Landis, president of the Pennsylvania Winery Association, who operates Vynecrest Winery near Allentown, adds that “statistics like these are definitely encouraging, and well beyond expectations, but the real value of the state wine industry runs much deeper than this study.” Vineyards and wineries help preserve and maintain farmland throughout Pennsylvania.