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Vineyard Profitability Factors
- Profitability depends on climate, grape variety, soil, sun, nearby vineyards, and equipment.
- The average California vineyard price is $150,000 per acre.
- Location matters.
- More acres improve economies of scale.
- Many open wineries despite higher investments and costs since profits are higher.
- Managers average $94,000 annually.
- Markups average two to three times wholesale costs.
- One vine produces 4-6 bottles yearly.
- Cabernets have the most global vineyards.
- Yearly costs per vineyard acre are $5,000.
- Yields of $11,000 worth of grapes per acre are possible.
- Safely shipping wine matters.
- Yields of 3-5 tons per acre are best.
- Planting costs range from $30,000 to $100,000 per acre.
- A minimum winery start-up today costs $600,000.
Vineyard Acreage and Production
How many bottles of wine can 1 acre produce?
How much wine can you make from 5 acres?
- The minimum size for a profitable vineyard is 5 acres.
- For wholesale, 10 profitable acres are needed.
- A 35-acre vineyard earning $2,500 per acre yearly sees $88,000 profit.
