The economic impacts of the Texas wine and wine grape industry on the state's economy

Date

1997-08

Journal Title

Journal ISSN

Volume Title

Publisher

Texas Tech University

Abstract

Wine grape growing and wine making have been agricultural activities In Texas for over three centuhes. The modern Texas wine and wine grape Industry has grown from one winery producing 5,000 gallons in 1970 to nearly thirty wineries producing over 1,000,000 gallons today. The objective of this study was to estimate the economic impacts of the Texas wine and wine grape industry on the Texas economy. The Impact Analysis for Planning (IMPLAN) model and 1996 information drawn from winery surveys, crush records, and vineyard records were used to estimate the industry's impacts on the state's economy. Findings indicate that the Texas wine and wine grape industry had a core economic impact on the Texas economy in 1996 of $85.8 million, supported 1,1 57 Texas jobs, conthbuted $29.6 million in income to Texas paychecks, and created $46.6 million in value added originating in Texas aghculture. As these findings underestimate the industry's economic impacts, particularly with respect to tounsm, the assertions of past research that the Texas wine and wine grape industry has an annual economic impact in the Texas economy of roughly $100 million, supports, 2,000 Texas jobs, and contributes $20 million to Texas paychecks are reasonable. Implications suggest that a united effort of industry and state supported research, economic development, and investment may more than double the Texas wine and wine grape industry's impacts on the Texas economy to $1 97.3 million in overall economic activity, 2,660 jobs, $68 million in Income, and $107.1 million in value added originating in Texas agriculture by 2007.

Description

Keywords

Grape industry, Wine industry

Citation