Research Reports
Rural Economic Vitalization Policy through the Wine Industry in Missouri (US) and Its Implications
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AuthorKim, Yonglyoul
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Publication Date2015.11.02
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Original
Background of Research
This study examined how the state of Missouri (US) vitalized the rural economy by fostering the wine industry which was collapsing and what support and policies were utilized. Through this, implications were drawn for Korean policies of invigorating the regional economy by using agricultural and rural resources.
Method of Research
The literature was collected on the projects regarding the vitalization of the US wine industry, statistics on institutions related to the invigoration of the industry, and Missouri's related policy and statistics. The visits to the case area enabled me to examine how the state's wine industry policy is utilized and how its support system is operated. I also investigated the current status of Missouri's wine sector by interviewing wine experts and people concerning the industry in the state.
Research Results and Implications
Missouri's wine production is 1.25 million gallons (about 4.73 million liters) as of 2013, ranking 14th in the US. This figure is only 0.17% of approximately 728 million gallons (2,759 million liters) of California, the first-ranking state. The number of Missouri's wineries is estimated to be 128. The growth of the state's wine industry, small-scale even in the US, offers implications for Korea whose wine sector is small.
The key of Missouri's state government's support policies to nurture its wine industry is the wine tax. Also, the Wine and Grape Production Tax Credit Program of the state's Department of Economic Development is directly related with the wine sector. Currently, 12 cents per gallon of the wine tax is imposed on every wine sold. The funds created by the tax support the Missouri Wine and Grape Program. This support fund goes to the Missouri Wine and Grape Board (MWGB), and is used for research, variety development, and promotion of grapes, wine, and juice.
Missouri's wine industry support system first secures funds through the wine tax. The MWGB controls the state's wine sector as an agent operating the funds. The Board supports the Grape and Wine Institute (GWI) at the University of Missouri through the funds created by the wine tax, thereby backing research on grape variety development, quality improvement, and wine. In addition, activities for promoting Missouri wine are also supported.
The Viticulture Enology Science and Technology Alliance (VESTA) is mainly in charge of education of grape growing and wine production at Missouri State University with GWI. As for the private sector's voluntary activities, the Missouri Grape Growers Association (MGGA) and the Missouri Vintners Association are exchanging information at meetings every year.
Therefore, the support system for developing the state's wine industry is an organic combination of securing funds through the wine tax; strengthening research and promotion through the funds; implementing educational programs with the University of Missouri; and improving communication through private organizations.
Missouri's wine sector gives us the following implications: the securing of stable funds; a reliable research institute; stable and field-centered education and credible educational agents; networking; the maintenance of management and history through family-run businesses; and each related agent's faithfulness to the basics.
Researcher: Kim Yonglyoul
Research period: 2014. 12. ~ 2015. 7.
E-mail address: kimyl@krei.re.kr
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