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TDA Specialty Crop Program 2002

“Evaluating Production and Market Opportunities for Tennessee’s Grape and Wine Industry”
Funding Level = $10,000

Executive Summary
Although state law caps the amount of out-of-state fruit that can be used to make wine in Tennessee, wineries can request to purchase more than the cap if they have made good-faith efforts to grow or purchase from in-state sources or if extenuating circumstances prevent the availability of in-state supplies. Approximately 46 percent of the fruits used for winemaking in Tennessee are American variety grapes, 20 percent are of the Muscadine variety, 15 percent are of the French-American hybrid variety, 11 percent are of the Vinifera variety and 8 percent are other fruit varieties. In 2001, 11 wineries requested a waiver for 60 out-of-state purchases of 24 different varieties and in 2002, 12 wineries requested a waiver for 64 out-of-state purchases of 22 different varieties. It should be noted that the amount of fruit requested through the J-6 waivers is in addition to allowed fruit purchases from out of state under the 50 percent and 25 percent rules. This study indicates that Tennessee wineries represent a market for approximately 90 additional acres of annual fruit production in the state. The estimated market value of this production is approximately $316,000 annually.

Indentification of Need or Opportunity
Statement of Goals
Forward Statement


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Center for Profitable Agriculture
P.O. Box 1819
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