A small vineyard can be profitable. Profitability depends on climate, grape variety, soil, sun, nearby vineyards, and equipment. Yields of 3-5 tons per acre are best. Location matters. More acres improve economies of scale. One vine produces 4-6 bottles yearly. Planting costs range from $30,000 to $100,000 per acre. The average California vineyard price is $150,000 per acre. A minimum winery start-up today costs $600,000. Managers average $94,000 annually. Safely shipping wine is important. Markups average two to three times wholesale costs. Yearly costs per vineyard acre are $5,000. For a wholesale operation, at least 10 profitable acres are necessary. The minimum size for a profitable vineyard is 5 acres. Cabernets have the most global vineyards.
Estimated Earnings and Yields
- A 35-acre vineyard earning $2,500 per acre yearly sees an $88,000 profit.
- Yields of $11,000 worth of grapes per acre are possible.
Wine Production Estimates
- One acre can produce between 4,000 and 6,000 bottles of wine. This is based on one vine producing 4-6 bottles yearly and typical yields per acre.
- From 5 acres, you can theoretically produce between 20,000 and 30,000 bottles of wine annually.