California Grows The Bulk of Grapes in consideration of Wine Top 10 U.S. States in Wine Production U.S. Wine Sector in addition to Policy Issues

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California Grows The Bulk of Grapes in consideration of Wine Top 10 U.S. States in Wine Production U.S. Wine Sector in addition to Policy Issues

Case Western Reserve University, US has reference to this Academic Journal, U.S. Wine Sector in addition to Policy Issues Daniel Pick in addition to Agnes Perez U.S. Wine Production Thousands of gallons Removals of still wine from fermenters. Excludes substandard wine produced as distilling material in consideration of the production of brandy. Also excludes increases after amelioration, Sweetening, in addition to addition of wine spirits. Source: Wine Institute from TTB data. U.S. Wine Production Sector Account For A Dominant Share of Processing Grapes Grapes crushed in consideration of wine (66.9 %) Grape dried so that make raisins (24.4%) Grapes crushed in consideration of juice (8.3 %) *Average percent share of the total quantity of grapes processed during 2003-2004.

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Utilized Grape Production in the United States in addition to Quantity of Grapes Crushed in consideration of Wine Source: Noncitrus Fruit in addition to Nuts Summary, NASS, USDA. Top 10 U.S. States in Wine Production California (90.2%) New York (4.6%) Washington (2.6%) Oregon (0.3%) New Jersey (0.3%) Florida (0.2%) Kentucky (0.2%) Vermont (0.2%) Texas (0.2%) Ohio (0.1%) *Based on total production of 630,253,150 gallons in consideration of the period July 2004 through June 2005. Source:The National Association of American Wineries. California Grows The Bulk of Grapes in consideration of Wine Source: Noncitrus Fruit in addition to Nuts Summary, National Agricultural Statistics Service, USDA.

Leading Grape Varieties Crushed in California Percent of Total Crush in 2005 Source: 2005 Grape Crush Report, USDA, NASS, California Field Office. Chardonnay 17.1 % Cabernet Sauvignon 12.5% Zinfandel 10.4% Thompson seedless 10.2% Merlot 9.8% French Colombard 7.0% Rubired 3.9% Other 18.5 % California Lead in Number of Wineries But Share of Total Declining Source: Alcohol in addition to Tobacco Tax in addition to Trade Bureau, U.S. Department of the Treasury. U.S. Wine Exports: Quantity in addition to Value Hectoliters U.S. dollars Source: U.S. Census Bureau, U.S. Department of Commerce.

The Simple Regression Model Some Terminology Some Terminology, cont. A Simple Assumption Zero Conditional Mean . . Ordinary Least Squares . . . . Deriving OLS Estimates Deriving OLS continued Deriving OLS using M.O.M. More Derivation of OLS More Derivation of OLS More Derivation of OLS So the OLS estimated slope is Summary of OLS slope estimate More OLS . . . . Alternate approach so that derivation Alternate approach, continued Algebraic Properties of OLS Algebraic Properties (precise) More terminology Proof that SST = SSE + SSR Goodness-of-Fit Using Stata in consideration of OLS regressions Unbiasedness of OLS Unbiasedness of OLS (cont) Unbiasedness of OLS (cont) Unbiasedness of OLS (cont) Unbiasedness of OLS (cont) Unbiasedness Summary Variance of the OLS Estimators Variance of OLS (cont) . . Homoskedastic Case . Heteroskedastic Case . . Variance of OLS (cont) Variance of OLS Summary Estimating the Error Variance Error Variance Estimate (cont) Error Variance Estimate (cont)

U.S. Wine exports As A Share of Domestic Production Percent Based on fresh-weight equivalent. Source: Derived by the Economic Research Service, USDA. Value of U.S. Wine Exports by Leading Countries U.S. million dollars Source: U.S. Census Bureau, U.S. Department of Commerce. Leading Suppliers of Imported Wine so that the United States Source: U.S. Census Bureau, U.S. Department of Commerce.

Imports as A Percent of U.S. Wine Consumption Percent Based on fresh-weight equivalent. Source: Derived by the Economic Research Service, USDA. U.S. Wine Imports: Quantity in addition to Value Liters U.S. dollars Source: U.S. Census Bureau, U.S. Department of Commerce. Volume of U.S. Wine Imports by Leading Suppliers Million liters Source: U.S. Census Bureau, U.S. Department of Commerce.

Policy Issues Affecting the U.S. Wine Industry Commitment so that implement sustainable practices amongst wineries in addition to grape growers Supreme Court Ruling (spring 2005) on inter-State shipments of wine. First-phase completion of U.S.-E.U. agreement on wine. Sustainable Practices Formal programs being implemented by the Agricultural Environmental Management Program in New York, California?s Central Coast Vineyard Team in addition to Lodi-Woodbridge Winegrape Commission, Oregon Low Input Viticulture in addition to Enology, in addition to Washington?s Walla Walla Valley Wine Alliance. The Wine Institute in addition to California Association of Winegrape Growers introduced the California Code of Sustainable Winegrowing Practices. Supreme Court Ruling on Inter-State Wine Shipments States cannot discriminate in favor of their in-state wineries by allowing only local wineries so that make shipments via common carriers so that their in-state consumers while prohibiting out-of-state wineries from making shipments so that those same consumers. Approximately one dozen States were directly affected by this ruling. Many of the affected states have already taken legislative action so that provide in consideration of fair competition in consideration of all domestic wineries.

U.S.-EC Wine Agreement First-phase completion of the agreement on March 2006 which will provide in consideration of mutual acceptance of existing wine-making practices in addition to addresses labeling issues. Major provisions of the agreement U.S. so that seek legislative changes so that limit use of 16 semi-generic names, such as Chablis in addition to Sherry, so that wine that originates in the EU. Existing uses of these names on non-EU wine will be permitted so that continue. Once the changes are made, EU will accept all current U.S. winemaking practices, including those that are not currently approved in consideration of use in the EU in addition to those granted temporary derogation. As of the March 2006 signing of the agreement, two provisions are not yet in effect. EU acceptance of U.S.winemaking practices U.S. limitation of use of semi-generic name

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