MSU Extension Grapes

A nationwide survey conducted by viticulture and enology experts from U.S. land-grant universities, including Michigan State University (MSU), has identified both shared and region-specific challenges within the U.S. wine industry. Esmaeil Nasrollahiazar and Dan McCole serve as principal investigators for MSU. Led by Aude Watrelot, Assistant Professor and Enology Extension Specialist at Iowa State University, and Cain Hickey, Assistant Teaching Professor of Viticulture at Penn State University, the project aimed to assess the needs of grape growers, winemakers and industry professionals across various U.S. wine regions.

Distributed in early 2024, the survey reached over 1,000 stakeholders from 40 states, collecting valuable insights on challenges related to viticulture, enology and business management. The findings underscore a common set of concerns across regions, highlighting the significant impact of climate change on the wine industry. Despite the unique conditions of each growing area, several key issues remain consistent.

Michigan's Top Challenges

Labor Issues

Labor challenges are among the most significant obstacles for Michigan grape growers. Many face difficulties in finding qualified vineyard help, coupled with high labor costs and a shortage of domestic farm labor. Many growers rely on the H2A program, which, while necessary, is both expensive and complex to navigate.

Weather and Climate

The unpredictability of weather patterns, including spring frosts and harsh winters, poses considerable risks to grape cultivation. Growers also contend with increasing pest pressure and disease management challenges. Drought and excessive rainfall during critical growth periods further complicate vineyard management.

Financial Constraints

Financial burdens weigh heavily on grape growers due to high costs associated with equipment, supplies, and vineyard management practices. Securing loans and capital for expansion or improvements is often challenging, and pricing wines competitively while ensuring profitability remains an ongoing struggle.

Regulatory Compliance

Navigating an increasing landscape of regulations creates additional burdens for growers. The complexity of paperwork, along with challenges related to wastewater management and environmental compliance, impacts operational efficiency. Local ordinances that restrict events and direct sales also hinder market access.

Market Perception

Overcoming negative perceptions associated with Michigan wines presents a significant marketing challenge. Educating consumers about the attributes of cool-climate wines and lesser-known varietals is essential for fostering acceptance. Additionally, Michigan wine producers must compete with established wine regions while adapting to changing consumer preferences.

Distribution and Sales

Securing reliable distributors for Michigan wines has emerged as a critical hurdle for growers. Challenges in expanding market reach beyond local areas inhibit growth potential. A concerted effort to implement better marketing strategies is needed to attract younger consumers and cultivate a broader audience.

Production Challenges

Limited winery space and equipment restrict producers' ability to scale operations effectively. Managing wine quality and consistency poses challenges due to variable grape quality influenced by environmental factors. Striking a balance between traditional winemaking practices and innovation is crucial to meet evolving market demands.

Top National Challenges

The survey identified three major challenges in each critical area of the industry:

• Viticulture: The top concerns included disease management, pest management, and climate variability. In the Midwest, growers particularly emphasized cold hardiness as a crucial factor.
• Enology: Key challenges included managing production costs, microbial spoilage, and wine acidity. In the Western states, managing aromatic profiles—likely influenced by wildfire smoke exposure—was a significant concern.
• Business Management: Key business challenges across all regions included wine distribution beyond the winery, understanding consumer preferences, and learning about winery visitor profiles.

“It’s striking to see that no matter where wine is produced in the U.S., the industry faces similar hurdles,” Watrelot noted. “However, these challenges are also shaped by regional factors such as climate and pest pressures.”

Regional Focus Groups Deepen Insights

To refine the survey results, researchers organized regional focus group meetings, dividing the U.S. into four regions: West, Midwest, Northeast, and South. These meetings allowed the team to gather more nuanced data, informing future research and educational efforts. Patty Skinkis, Professor and Viticulture Extension Specialist at Oregon State University, led discussions in the Western region, emphasizing the need for applied research and outreach to address viticulture and enology challenges.

The focus groups also revealed barriers to reaching winemakers with enology research, citing limited faculty and funding as significant challenges in engaging this critical group.

Next Steps

With the survey and focus group data in hand, the research team is preparing to submit a grant proposal for federal funding to address the identified issues. They aim to develop new projects tailored to the unique needs of wine regions across the U.S. while fostering collaboration among industry professionals.

“This feedback from the industry is invaluable,” Hickey said. “We plan to use these findings to guide research and educational efforts that help the U.S. grape and wine industry remain resilient in the face of climate change and market challenges.”

This project is part of a larger federally funded planning initiative under the Specialty Crop Research Initiative, with the long-term goal of improving regional grape and wine production throughout the U.S.

Looking Ahead

The research team will continue analyzing the data and publish their findings for the benefit of other academic and industry stakeholders. As the U.S. wine industry navigates environmental and economic shifts, collaboration between land-grant universities and industry professionals will be crucial in supporting sustainable practices and long-term growth. The survey results highlight the need for applied research, industry collaboration, and outreach to tackle the evolving challenges facing the U.S. wine industry.

For more information on this research and future developments, please contact Aude Watrelot at watrelot@iastate.edu or Cain Hickey at viticulture@psu.edu.

We extend our heartfelt thanks to the Michigan grape growers and winemakers who shared their invaluable insights by participating in our survey. Your contributions are essential in shaping the future of the grape and wine industry, not only in Michigan but across the U.S. The information gathered will guide future research, enhance regional production, and address the unique challenges faced in cool-climate viticulture. We appreciate your dedication and look forward to utilizing these findings to improve grape and wine quality in our region.