OREGON'S WINE INDUSTRY IS FOCUSED ON PINOT NOIR / New Records Set By 2006 Grape Crush

Times are booming for the Oregon wine industry. From 1996-2006, the harvested acreage of wine grapes in Oregon more than doubled (5,800ac to 12,600ac) and the value of wine production increased two and one-half times ($15.3M to $60.2M).

Pinot Noir is by far Oregon's most important grape. By far, the most important grape harvested is Pinot Noir, whose value climbed from $7.09M in 1996 to $37.7M in 2006, according to statistics reported in February 2007 by the Oregon Field Office of the National Agricultural Statistics Office. Pinot Noir took over from Chardonnay and Riesling in the 'eighties as Oregon's dominant grape variety and by 2006 more than half the total crush was Pinot Noir, 17,680 of the total 34,400 tons crushed from the state's 72 grape varieties.

Yamhill and Polk Counties. The center of Oregon's wine industry is the Northern Willamette Valley and, in particular, Yamhill and Polk Counties (approximately an hour drive Southwest from Portland). The 4,254 acres of harvested vines in Yamhill County yielded 10,719 tons of wine grapes and was the source for 31% of Oregon's total 2006 crush. Adding the 1,853 acres harvested in Polk County (another 4,812 tons of fruit) and it brings the combined total to 45% of the state's entire crush, as well as 63% of the Pinot Noir crush.

Other Counties. While commercial grape production in Oregon is particularly concentrated in the Northern Willamette Valley, an expansion of vineyard acreage is taking place in 24 Oregon counties and new appellations have been recently added. While most of growers in the counties which include portions of the Willamette Valley are clearly focused on Pinot Noir and Pinot Gris for their success, Cabernet Sauvignon, Merlot and Syrah, rather than Pinot Noir, are the dominate varieties in the warmer climes of Jackson County and the Rogue River Valley. Vineyards along the Columbia River are also finding a responsive market for their Cabernet Sauvignon, Merlot and Syrah, as well as their White Riesling. One significant change that contrasts Oregon from most expanding wine producing areas in the world, Chardonnay grape acreage in Oregon has significantly dropped during the decade, totaling 1506 acres at the beginning of the decade and dropping to 929 acres in 2006.

New records ahead. New harvest records are certain for the coming years, since a large share of the total planted acreage had not reached maturity by 2006. Some 19% of Oregon's vines were still too young in 2006 to bear any significant crop.

Wine production is a vital growth industry for Oregon. The number of Oregon wineries more than tripled during the past decade, from 105 to 350 registered wineries. Some 236 wineries reported crushing grapes in 2006, and Oregon wines were marketed under roughly 400 labels.

Both Direct-to-Consumer and Out-of-State sales are essentual to Oregon producers. Of the 1.63M total cases sold by wineries in 2006, some 18.6% went in direct sales to consumers (both in and out of state), with 25% to in-state and 56% sold to out-of-state distributors, retailers and restaurants. Washington is the largest out-of-state market followed by California and New York. Of the more than 38,000 cases sold out of the country, Canada and Japan are the most important foreign markets and all of these destinations are of increasing importance as Oregon's wine industry continues to grow.

Major Pinot Noir Events: Oregon's International Pinot Noir Celebration & ¡Salud!. Oregon's IPNC, International Pinot Noir Celebration, is held annually in McMinnville and the 20th Celebration is scheduled for July 27-29, 2007. An additional auction event to benefit vineyard workers is held in November (November 10-11, 2007). To obtain full details on the IPNC to register for the Celebration press IPNC WEBSITE and to find out details on the November auction event press ¡Salud! Auction .