Adoption of Agenda

THE CHAIR ASKED FOR ANY REVISIONS OR ADDITIONS TO THE AGENDA AND HEARING NONE HE ORDERED ADOPTION OF THE AGENDA AS DISTRIBUTED PRIOR TO THE MEETING.

Minutes of the October 5, 2006 Meeting

MOTION: AMANDA DANIELSON MOVED TO ACCEPT THE OCTOBER 5, 2006 MINUTES. SECONDED BY LIZ BERGER. MOTION CARRIED UNANIMOUSLY.

STAFF REPORT - BOB CRAIG

Bob informed the Council that Linda Jones requested a six-month unpaid leave of absence, which was approved by Director Irwin. She will leave December 22, 2006 and return July 2, 2007.

STAFF REPORT - LINDA JONES

• Linda briefly reviewed the FY06 Annual Report, distributed updated Highlights documents to the Council, and noted that the Staff Objectives listed in the Annual Report provide a record of accomplishments for the year. Director Irwin expressed appreciation for Travel Michigan's inclusion of winery touring in their Pure Michigan promotional campaign and expressed a desire to incorporate the Pure Michigan brand in the Department's promotional efforts.
• Linda reported that she recently attended the Fall Meeting of WineAmerica at the New York Wine and Culinary Center. She briefly described some of the main topics covered.
• Linda will conduct a videoconference workshop November 28 to provide general feedback on proposals received through the recent round of Ag Innovation Grants, and suggest other potential sources of funding.
• There will be a Grape Industries Luncheon December 6, during the Great Lakes Fruit & Vegetable Expo in Grand Rapids.
• Linda distributed a draft of the agenda for the Michigan Wine Industry Annual Meeting, to be held Feb. 28-March 2, 2007, at Crystal Mountain Resort in Thompsonville. Director Irwin suggested that the Travel Michigan Pure Michigan ads could be put on a DVD and run periodically during the conference. He also suggested that in creating the agenda, staff should consider whether there is any upcoming legislation or policy or budget issues that should be addressed during the conference. Linda responded that legislators with wineries in their district will be invited to the conference and to a special legislative reception.
• Linda commented that the Council had discussed the need for a strategic planning session. She proposed August 27-28, 2007 for the session.

RESEARCH AND EDUCATION ADVISORY COMMITTEE (REAC) REPORT - DAVE MILLER

• The committee has not met since the last Council meeting.
• Michigan State University is conducting interviews for the Viticulture position. They are still accepting applications for the Enology Extension position and anticipate interviews to begin December 11.
• Dave commented that the Council has committed to three years of support to help fund the Enology Extension position, but MSU has the expectation that the industry will begin to provide support for the position.
• Charlie Edson reported for Ron Perry that funding is available through the USDA's Viticulture Consortium Eastern Section for grape variety trials in Michigan. Dr. Perry is consulting with members of the Council's Research and Education committee on varieties to be selected for planting at the Michigan test site.

PROMOTION COMMITTEE REPORT - LIZ BERGER

• The committee has not met since the last Council meeting.
• Liz briefly reviewed some of the promotional responsibilities of the Council, which include supporting wineries by providing information to aid in their promotional efforts, initiating contact with wine writers and media, and providing information to the public through the Michigan Wine Country magazine, Michigan Wines web site and other opportunities.

NEW BUSINESS
No new business.

PUBLIC COMMENT
No public comment.

COUNCIL MEMBER REPORTS

• Melinda Remer - Travel Michigan received $15 million to be used for promotional efforts over five years. They have implemented the Pure Michigan campaign and will use $7.5 million per year for two years. There are ads in three new markets, plus in-state promotion. They used part of the funding to get new video footage to be used in current and future ads. Video library is 15 years old. Melinda presented a two-minute video collage with highlights of the film.
• Liz Berger - Chateau Chantal is racking their reds. It was a difficult harvest. They had a record fall, through November.
• Bob Jacobson - Bob is concerned that there's not enough tank space in wineries. An increase in grape acreage is good, but growers need to have a home for them.
• Dave Miller - St. Julian has had record weekends. Sales are up 24% in wine. This was the wettest year in 30 years; some fruit rotted and was not harvested. They have increased their wine grape contracts by 30%.
• Amanda Danielson - Trattoria Stella had an amazing fall, and weekends are still very high. Increase may be due to increased disposable income.
• Charlie Edson - Charlie "echoed everything" that other wineries were seeing at their location.
• Bob Craig - Bob introduced Jeanne Lipe, a new employee in the Agriculture Development Division.
   
  He reported that in 2001, Specialty Crop Block Grant funding for Michigan was $3.75 million; there is only $136,000 available this year. With the cost of administration and auditing, MDA will not be administering a sub-recipient grant program this round.
   
  The FSMIP (Federal State Marketing Initiatives Program) will consider proposals from wineries for market development assistance. Proposals are administered through the Michigan Department of Agriculture and are due to MDA in mid-January. The proposals must be marketing-oriented or address issues that increase competitiveness in the industry. Promotion and advertising projects are ineligible. More details will be available from MDA in the near future.

OTHER BUSINESS
Next meeting will be via teleconference/videoconference on January 11, 2007.

ADJOURNMENT
The meeting was adjourned at 2:55 p.m.