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W i n e s & V i n e s A P R i L 2 0 1 4 15 Despite Rains, California Drought Continues sAN rAFAEL, CALIF.—Thanks to some February and March rain- storms, cover crops were in full growth across California's vineyards in mid-March, but the greenery belied the serious drought the state was experiencing. The main concern among growers and winemakers as spring began was the risk of a frost and a short supply of water to protect young vines. Bud break or bud swelling had been reported throughout much of the state, yet most of California remained in a severe water deficit, according to the U.S. Drought Moni- tor service. Nearly all of San Luis Obispo County, which is home to 346 wineries and nearly 30,000 acres of vines, is suffering a cate- gory D-4 drought, or "exceptional drought" of historic proportions. According to the state Depart- ment of Water Resources, the Sierra Nevada snowpack, which is the source for much of the state's water, totaled only 29% of its April average and was just 31% of nor- mal for early March. The northern Sierra was the driest with just 20% of normal precipitation. At the end of February, the state's total water storage was at 40,902 acre-feet, or 63% of normal. There was little hope for any major precipitation as well. The National Weather Service's Cli- mate Prediction Center forecast that most of California would continue to experience drought and above-normal temperatures through the spring and into early summer. Gov. Jerry Brown signed legis- lation that designated $687 mil- lion in bond funds for water and flood control toward drought relief. The majority of that funding would go to cities for water conservation and retention efforts as well as $46 million for emergency aid to those out of work from the drought. —ANdrEw AdAms Eastern wine Industry Economy Grows LancaSTer, Pa.—california may have the larg- est number of wineries in the United States, but there are wineries in all 50 states, and the industry is expanding every year. With a total of 319 wineries, new York has more wineries than any other state east of the Missis- sippi river, and it produces nearly 20.4 million cases of wine per year. Of course, 17 million of those cases are made at canandaigua Winery, one of the largest win- eries in the country. In February, the new York Wine and Grape Founda- tion released the results of an eco- nomic impact study utilizing data from 2012. The new study showed that there are now 37,000 acres of grapes; winery revenue is almost $553 million, and wages paid were more than $1.14 billion. The total economic impact of the new York wine in- dustry on the state's economy rose from $3.76 bil- lion in 2008 to $4.8 billion in 2012, according to the study. Virginia has the second largest number of winer- ies east of the Mississippi, and it has grown from only 69 wineries in 2000 to 222 in 2014. In Febru- ary 2011, then-Gov. Bob McDonnell announced the results of an economic impact study conducted in Virginia the previous year that showed the wine industry adding $747 million to the state's econ- omy each year. currently Virginia wineries pro- duce a total of 774,525 cases per year, a number Thomas Jefferson surely would be proud of. The number of wineries in Pennsylvania, the third-largest wine-producing state in the east, has increased from 70 in 2000 to 174 today, according to Wines Vines analytics. a study released by the Pennsylvania Wine Marketing research Board in 2009 showed the wine indus- try having a total impact on Pennsylvania's economy of more than $870 million. Given that these numbers were based on an industry with only 114 wineries, it is reason- able to project that the current impact of the indus- try is well north of $1 billion. Pennsylvania also has a large grape juice industry that adds to the economic impact of grapes in the state. The Ohio Department of agriculture reported in June 2011, that the wine industry had a total im- pact on the state's economy of $580 million. The state had 60 wineries in 2000 and currently has 144 wineries. Pennsylvania produces 755,365 cases annually, and Ohio is slightly ahead with 759,980 cases. —LINdA JoNEs mCKEE other top stories u.s. sens. Kirsten Gillibrand and Charles Schumer asked the U.S. Department of Agriculture for federal disaster aid to help vineyards in New York state, where temperatures as low as -18° F are expected to result in significant crop loss this year. An investment group that owns several supermarket chains agreed in March to purchase Safeway in a $7.6 billion cash deal that would merge Safeway and Albertson's. Following the merger, expected between Oct. 1 and Dec. 31, the company would have more than 2,400 stores. washington state's 2013 harvest tipped the scales at 210,000 tons, according to the pre- liminary Washington Wine Grape Release published by the USDA National Agricultural Statistics Service. Cabernet Sauvignon made a robust showing, posting 42,600 tons—ahead of Char- donnay and Riesling, at 40,500 and 40,200 tons, respectively. u.s. wine exports reached a record high $1.55 billion in winery revenues in 2013, up 16.4% compared to the previ- ous year, an increase for the fourth consecutive year by val- ue. Volume shipments reached 435.2 million liters or 48.4 million cases, up 7.5%. The top five importers of U.S. wine are the European Union, Canada, Japan, Hong Kong and China. the u.s. Environmental Protec- tion Agency proposed changes to its pesticide protection regu- lations. The changes include increased frequency of training sessions, enacting a minimum age requirement, expanded post- ing of no-entry signs and more. LAtEst NEws More detail on the news at: winesandvines.com n Abnormally Dry n Moderate Drought n Severe Drought n Extreme Drought n Exceptional Drought New York Virginia Pennsylvania ohio No. of wineries 319 222 174 144 No. of cases 20.4 million 774,525 755,365 759,980 Avg. bottle price $16.38 $19.11 $14.03 $14.33 A P R I L N E W S