The link below takes you to a story entitled, “States Pour Government Money Into Wine”. Although true, some states are definitely investing more than others. Also pay attention to the economics of the vineyard presented in the article. A zealous nature helps — along with an economy of scale.
http://www.businessweek.com/smallbiz/content/oct2010/sb20101020_349721.htm
Dr. Stafne's Glog 
October 27, 2010 at 2:18 pm
One needs to reemphasize that vineyards are extremely capital and labor intensive….and one better have deep pockets before even the first grapes are picked from the vine. Local grape growers need to be as cost-effective as possible…and remember to focus on finance mgt. just as much as production performance.
October 27, 2010 at 3:49 pm
I think this is an interesting point. Should grape growers be more concerned with quality or quantity? It appears to me that vineyard owners selling to wineries should not totally discount creating a quality product, but they must maximize productivity in order to survive.
October 28, 2010 at 2:51 pm
Yea…vineyards need to produce the best quality grapes at the least expense. I realize this is a real challenge in OK, but it gives all of us… producers, researchers and educators the missionary zeal to find the right answers.
October 27, 2010 at 3:39 pm
The great viticulture teacher from Texas, George Ray McKeachern, said repeatedly in his classes that very small wineries can be profitable while mid sized ones never make money. Dorothy
October 27, 2010 at 3:47 pm
Well, it may not be as black and white as that. Dr. Mceachern is prone making things cut and dry when it may not be. Mid-sized wineries have more trouble because they are too small to compete against the “big guys” and too big for the niche market. Economy of scale is the issue, but it is not to say they can’t make money — it depends on the ability to market their product so they can grow into a large scale winery (and thus be more profitable). However, the economy of scale can be different (much different) for a winery vs. a vineyard.
October 28, 2010 at 3:04 pm
By that logic, then we should either start wineries “small” and stay that way or if one wants more volume, E&J Gallo levels will fit the bill instead…and nothing in-between. I think George was relating some of the challenges that “mid-sized” farm demographics have to “mid-sized” wineries. Some similarities in economic scale issues to be sure, but still, an apples and oranges comparison at best.