Wineries provide a welcome boost to economies of West Central area

With such delicate structures, grapes seem rather unlikely fruits to grow in the sometimes harsh weather of Minnesota.  However, despite the very real elements, the University of Minnesota Horticultural Research Center (HRC) and the West Central Partnership are pairing together to make a reality out of cold-hardy grape varieties, created specifically for Minnesota.  James Luby, professor at the University of Minnesota in the Twin Cities and member of the Board of Directors at the West Central Partnership, has served as a major player in developing new wine varieties by naturally breeding grape seedlings in the HRC laboratory.  The lab currently has created four grape varieties used for local grape production (Frontenac, La Crescent, Marquette, and Frontenac gris) and is working on more.  While delicious and unique, these new grape varieties represent an innovative and resource-based solution to strengthening a potentially sluggish economy.  Luby, along with U of M Professor of Economics William Gartner, has worked with the Minnesota Grape Growers Association to develop the Minnesota Wine Grapes Economic Study.  This study was intended to precisely examine the impacts of the U of M’s newly developed grape varieties have had on Minnesota.  Though it should be no surprise, the study revealed significant economic growth for the year 2007 within local communities across the state of Minnesota that house their own wineries, created from grapes from the University of Minnesota.

One community, Cannon Falls, has seen exceptional growth not only with just the wineries, but in the spillover effects these wineries have on local business.  “Having a winery among other retail or restaurant establishments is great because it’s a way to draw people in - not only from Cannon Falls, but also from the Twin Cities and Rochester. From an economic standpoint, it’s a tremendous upside for the rural communities,” says John Maloney, owner of the Cannon River Winery.  Maloney sells wine locally from the grapes created by the HRC at the U of M.  The MN Wine Grapes Economic Study had confirmed what Maloney had seen following the opening of his own winery: locally produced foods sell themselves.

According to Professor Gartner, the study empirically shows what managers of local wineries, like Maloney, have been sensing all along: a positive economic growth with the introduction of local wineries, indicating that the wine industry in Minnesota will most likely to continue to thrive.  “West Central farmers can grow these grapes, so wineries are not only users of the grapes and producers of wine they serve as local tourist attractions,” says Gartner of the study’s findings.  “Their tourism economic impact is actually larger than what results from operating the winery.”  In addition to economic contributions catalyzed by tourism, the study also discusses the rate at which wineries are growing, as well as the increasing value of cold-hardy grape crops in Minnesota.  The study shows that each of these factors is increasing, even more than originally anticipated.  This is good news for local grape growers and small winery owners alike, says Jim Luby.