Enhancing Rural Prosperity Via the Development of the Walla Walla Wine Cluster
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1 Enhancing Rural Prosperity Via the Development of the Walla Walla Wine Cluster Pierce County Farm Forum February 6, 2014 Puyallup, WA Steven VanAusdle President Walla Walla Community College
2 The Challenges of Our Time Balancing Security, Prosperity, and the Environment Safety and Security Economic Competitiveness Environmental Sustainability
3 Jobs, Wages, and Standard of Living A Strategy for Economic Competitiveness Productivity* Innovation and Entrepreneurship Talent Investment Infrastructure *Improving Productivity will require more innovative uses of existing resources.
4 Healthy Environmental Ecosystem A Strategy for Environmental Sustainability Productivity Innovation and Entrepreneurship Talent Investment Infrastructure
5 Drivers of Agricultural Ecosystem Development Talent Production Entrepreneurship Precision Technology Marketing Agri-Tourism Agri-Tainment Branding Investment Access to Capital Research Incentives Infrastructure Information Energy Water Transportation Regulations Tax Policy Safety and Security
6 Make Talent A Top Priority Prof. Technical Technical Prof. Unskilled Technical Unskilled Unskilled Source: WA Economic Development Commission
7 The Path to 60% Degree Attainment in Pierce County 60% 50% 40% 30% 43.3% 43.3% 34.9% 45.7% 44.2% 35.8% 48.1% 45.0% 36.6% 50.5% 45.9% 37.5% 52.8% 46.8% 38.4% 55.2% 47.6% 39.2% 57.6% 48.5% 40.1% 60.0% 49.4% 41.0% 20% Annual benchmarks (targets) for a straight-line trajectory for Wash. State to reach 60% attainment by 2025 Expected percentages of Wash. State degree holders among 25- to 64-year-olds at the current rate Expected percentages of Pierce County degree holders among 25- to 64-year-olds at the current rate Source: U.S. Census Bureau, 2000 Census, 2010 & 2011 American Community Survey
8 Welcome to Walla Walla
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10 WWCC Center for Enology & Viticulture 2006 Governor s Workforce and Economic Development Best Practice Award
11 Our Vision: Wine / Food / Art
12 WWCC Enology Students Learning While Creating College Cellars Wine
13 WALLA WALLA Union~Bulletin Wednesday, May 30, 2012 College Cellars wines win regional acclaim Eight wines from the local teaching winery took home honors from recent judgings WALLA WALLA Student-made wine brought home nearly a case full of hardware at the recent Seattle Wine Awards and Northwest Wine Summit. In the Seattle Wine Awards, College Cellars won three double golds, a gold, two silvers, and two bronze medals. The 7th Annual Seattle Wine Awards is Washington State s largest and most comprehensive independent wine recognition program. The awards are the highest recognition that a winery can earn in the state. College Cellars won three Double Gold medals for its 2011 Ice Wine, 2009 Syrah, and 2008 Malbec. They also won Silver medals for their 2011 Sauvignon Blanc and 2010 President s Blend along with a Bronze medal for the 2010 Scholarship Red.
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15 Vinea: Sustainable Wine Farming
16 Port of Walla Walla Wine Incubators
17 Wine Expo Draws Buyers From Around World to Walla Walla Source: Walla Walla Union Bulletin
18 Wine Country Culinary Institute With a Focus on Pairing Food and Wine
19 Promoting The Creative Economy
20 Wine... A High Value-Added Industry 300 acres of unprocessed wine grapes generates the same revenue as 8,000 acres of 100 bushel/acre wheat. When processed, 300 acres of wine grapes generates the same revenue as 20,000 acres of 100 bushel/acre wheat. Wine production contributes $5 billion to Washington's economy (Washington Wine Commission 2012). Wine production in Walla Walla County contributes over $500 million to the local economy (Washington Wine Commission 2012). Tourism is anticipated to produce more revenue than wine production. A wine tourist spends approximately 2.5 times as much as the average tourist at their destination.
21 Wine Cluster
22 Walla Walla Valley Wine Cluster Study Grapestock Washington State Legislature, Wine Commission, Wine Institute, & Walla Walla Valley Wine Alliance Winemaking Equipment Fertilizer, Pesticide, & Herbicide Vendors Grape Harvesting Equipment Vendors Irrigation Technology Manufacturers Compostea Worm Farming Washington Agricultural Cluster Growers / Vineyards Based on Michael Porter's format for describing industry-based clusters Wineries / Processing Facilities Infrastructure Educational, Research, and Trade Organizations (e.g., WWCC Enology & Viticulture Center & Culinary Arts Program, WSU) Barrel Accessories Bottle Etching Caps & Corks Supplier Public Relations & Advertising (Branding, Web Site Development) Art Cluster Culinary Cluster Tourism Cluster
23 Net Migration, Walla Walla County Sources: U.S. Census 2000 (Residence 5 years ago), U.S. Census; Annual County Population Estimates
24 Projected IPZ Employment With and Without the Wine Cluster With Without 2006 Projections
25 The Walla Walla IPZ Wine Cluster Wine Cluster jobs including multiplier effects Total Jobs ,003 Added since ,740 Projected total in ,913 Total regional earnings generated through direct, indirect, and induced effects $230 million
26 Economic Impact of Establishing 1,000 Acres Of Vineyard Production in the Walla Walla Valley Employment, Earnings, and Sales Vineyard Operations Winery Operations Time New New Total Gross New Total Gross Period Acres Full- Time Jobs Combined Earnings Sales Full- Time Jobs Combined Earnings Sales Year Year Year 9 1, $4,392,000 $8,750, $6,000,000 $60,000,000 Indirect 48 $2,898,720 $2,800, $3,960,000 $19,200,000 Total 168 $7,290,720 $11,550, $9,960,000 $79,200,000
27 National Journal How Wine Growing in Walla Walla Supports the Economy By Catherine Hollander June 1, 2012 America s economy today feels as sleepy as Walla Walla s two decades ago. Middle-class workers were slammed by the financial crisis, their jobs disappearing, wages stagnating, and future uncertain. To put them back to work, the nation would do well to consider Walla Walla, which seems to have cracked the code on how to get mid-skill workers back into the labor force while revitalizing an economy. If the country needs a model, this could be it.
28 National Journal When Ordinary Americans Accomplish What the Government Can't June 13, 2013 The National Journal names Walla Walla Community College one of the top 50 innovators in the U.S. and one of four finalists in the Regional Economic Strategies category. Walla Walla Community College in Washington state earns the rare distinction of being an institution of higher education that is reinventing the regional economy from the bottom up. A decade ago, the college recognized that local wine had the potential to power growth, and it created a training program tailored to the industry's needs. As a result, the number of area wineries exploded from 16 in 2000 to 170 today, spurring further growth in the hospitality and tourism sectors. Walla Walla is now trying to re-create that success with programs in electrical and wind energy, nursing, and watershed ecology.
29 Water & Environmental Center 2010 Governor s Workforce and Economic Development Best Practice Award & 2011 Columbia River Inter-Tribal Fish Commission Leadership Award
30 Governor Gregoire Signs HB 1580: Innovative Water Management Initiative
31 Partnership with Confederated Tribes of the Umatilla Indian Reservation Our shared vision... create a healthy ecosystem with clean, clear, and cold surface and groundwater supplies capable of sustaining salmon and other aquatic life while meeting the agricultural and other economic, cultural, and domestic use requirements of the region.
32 The UNIBEST Resin Capsule
33
34 Saving water with improved irrigation efficiencies Transferring technology to the streams with fish screens Independent water audits now document water savings of 30% when conventional sprays 34 are replaced with MP Rotators.
35 Precision Agriculture
36 Alternative Fuels
37 Enhancing the Energy Cluster in Southeastern Washington
38 Transportation Infrastructure Development 500,000 sq. ft. Wine Distribution Center Wallula Washington Rotterdam New York Delano California Future Expansion Future Expansion
39 Creating the Innovation Partnership Zone (IPZ) Ecosystem County City Port WWCC Chambers of Commerce University Center K-12 Career Pathways Collaboration Workforce Development Business Development Excellence Downtown Foundation Skills Center Rural Center for Entrepreneurship Tourism Walla Walla Collaborators Initiatives Values Mission Vision Foster a Healthy Economy and a Healthy Environment Entrepreneurship Wine & Hospitality Cluster Art Alliance Wine Alliance Water Quality Sustainability Enology & Viticulture Center Dept. of Ecology Watershed Restoration Integrity Infrastructure Economic, Environmental, and Learning Cultural Sustainability Innovation Diversity Water Center Sustainable Living Center Confederated Tribes Water Efficiency Walla Walla Partnerships Watershed Partnership Energy Efficiency Renewable Energy Wallowa Resources Utilities Salmon Recovery Board
40 Agriculture: A Cornerstone of Washington's Economy October 2011 The state's $40 billion food and agriculture industry employs approximately 160,000 people and contributes 12 percent to the state's economy. Nearly $13 billion in food and agricultural products were exported through Washington ports in 2010, the third largest total in the U.S. Farmed 17 percent of land to generate 2 percent of the State GDP.
41 Comparison of $/Acre Productivity Values County Total Acres in Agriculture Total $ Sales Whatcom 148,027 $287,860,000 Skagit 113,821 $217, Snohomish 68,612 $126,947,000 Pierce 57,224 $94,170,000 Thurston 74,442 $114,675,000 Sales Value/Acre Westside Totals 462,126 $841,036,000 $1,820/acre Yakima 1,678,984 $843,871,000 Grant 1,074,074 $881,756,000 Douglas 878,867 $124,378,000 Lincoln 1,233,377 $93,555,000 Whitman 1,328,337 $162,631,000 Eastside Totals 6,193,639 $2,106,191,000 $340/acre Source: USDA Census of Agriculture, 2002
42 An Ongoing Challenge Land Lost to Development For the five-year period of 1992 to 1997, the State of Washington lost an average of 23,720 acres per year just to development. This is equivalent to an area the size of Lake Washington. For the ten-year period of , the census reported a loss of 67,860.6 acres per year (4.3 percent). Source: WSDA Future of Farming Project, American Farmland Trust
43 Value of Development Rights in Washington Total Fair Market Value of all agricultural lands = $13.9 Billion Source: WSDA Future of Farming Project, American Farmland Trust
44 Sustaining the Future of Agriculture 1. Make Agriculture a Priority 2. Reduce Regulatory Barriers 3. Protect Resources Land Water Labor 4. Strengthen Supportive Services Research and development Education Energy Capital and credit 5. Harness Emerging Opportunities Organic, sustainable, and local Food safety and security Transportation Marketing Services Climate change Risk management
45 Wine is Prosperity in a Bottle
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