Oregon Wine Industry Sustainable Showcase

Gregory V. Jones Panel Framework  Oregon wineries and vineyards are implementing innovative sustainability and environmental practices across the entire system from growing grapes to making wine to selling wines regionally, nationally and internationally  Our goal today is to provide a discussion on these practices in the wine industry and how they are being showcased in Oregon Talk Outline

 Sustainability –a ‘Growing’ Trend  Sustainable Vineyard/Winery Initiatives  Oregon Agribusinesses and the Wine Sector  Climate Change … one of many stressors  Summary  Panel Discussion Interest in Sustainability: A Growing Global Trend

 Global to regional challenges: Environmental degradation, climate change, resource scarcity, pollution, health threats, population growth, urbanization, etc.  Growing involvement in sustainable development & sustainable agriculture among governments  Growing investment in sustainable businesses: manufacturing, food/agriculture, service, energy, transport, and other sectors; many involved in certification and labeling Multiple Forces Behind Changes

ENVIROMENTAL STRESSORS SOCIAL AND CLIMATE CHANGE CONSUMERS ENVIRONMENTAL CHALLENGES & ROLE OF NGOs

SUSTAINABILITY INCREASING IN IMPORTANCE

COMPETITION GOVERNMENTS

INVESTORS & EMPLOYEES ANALYSTS Sustainable Vineyard & Winery Developments Worldwide Wine Sector Sustainability Surveys

 Subjective Norms, Environmental Commitment, and Competitive Advantage most correlated with the implementation of sustainable practices  Owner/employee subjective norms and regional institutional norms greatest drivers of sustainability practice adoption  Company size not a significant factor  Greater export dependency drives country differences (external stakeholders) Sustainability Initiatives In the International Wine Industry

Chilean Sustainability Code Oregon  Oregon is a specialty-crop state with 220+ recognized commodities  Oregon is #1 in the nation for numerous commodities and in the top 5 for many more

#1 #1-3 #1 #1-4 #1 #1

#3 #4 #2 #3 #3 #4 #2 #4 Oregon  The wine sector in Oregon is a top 10 agricultural commodity with strong ties to tourism  Like Oregon itself, the industry is seen globally as being environmentally focused  The industry strives to be environmentally, economically and socially sustainable, supported by a culture of network cooperation to reduce threats and maximize opportunities Viticulture and Wine Production Sustainability: Processes of Greatest Efforts and Synergies

On-Farm Synergies Winery Energy Energy GHG GHG Air Quality Air Quality Pesticides Indirect Pesticides Water Use Water Use Soil, Nutrient & Water Soil, Nutrient & Water Indirect Quality Quality Biodiversity Indirect Biodiversity Waste Waste Human Resources Human Resources Climate Change and Agriculture

 Changes in average climate structure and variability, longer/warmer growing seasons, changes in extremes  Earlier phenology (plant growth events)  Altered ripening profiles  Altered disease/pest timing and severity  Impacts to beneficial insects (e.g., bees)  Changes in soil fertility and erosion  Water availability and timing of irrigation (some places drier, some wetter) Climate Change and Agriculture  Impacts vary depending on whether they are broadacre crops … Climate Change and Agriculture  Or specialty crops … Jones (2006) Production and Quality Metrics Poor Under Low Threshold Crop Too

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Yields

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environmentally Plasticity Varietal ‐ Optimum Climate Climate

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Adaptation – (long

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(short Metrics

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easier ‐ term)

yield,

to ??? Over Threshold Too ???

Thresholds Yields Quality Warm

Ripe

Summary & Further Discussion

 Climate change is only one of many stressors that agribusinesses face  Sustainable agricultural practices are becoming increasingly recognized, adopted and integrated within different sectors of agriculture  Viticulture and wine production have been at the forefront of these developments largely due to the nature of the business and its historic ecological stewardship Summary & Further Discussion

 Surveys have shown that the majority of growers and producers in the wine industry see sustainability as a key part of an overall business plan  Oregon’s wine industry is leading the way, driven by company, employee, and regional association initiatives  The rest of this panel will focus on many of these efforts by leader’s in the Oregon wine industry