Washington wine grape production was up 6 percent in 2007, continuing the steady growth of the vine industry since 2005.

Wine grape growers in the state produced a record 127,000 tons of red and white varieties, according to a report released Friday by the U.S. Department of Agriculture.

Wine grape acreage in Washington was No. 2 in the nation at 30,500. California is by far No. 1 at 480,000 acres for wine grapes. Oregon's acreage was about 13,000 acres.

The report for Washington state also noted a 12 percent increase in the production of Merlot grapes and a 7 percent drop in Chardonnay grapes.

In 2006, there were 28,600 tons of Chardonnay in Washington. Last year, that dropped to 26,700 tons. The popular white grape still remains the most widely planted wine grape in the state.

Paul Champoux, owner of Champoux vineyards and chairman of the Washington Association of Wine Grape Growers, said the decline in Chardonnay production also was affected by late-spring freezes.

"I'm down on my Chardonnay and my Riesling -- the early spring varietals -- because of the weather," Champoux said. "Last year was one of those rare years. We had a Mother's Day frost -- on May 10 it was 25 degrees, so I lost some primary buds and clusters."

Since the red varieties mature later, they weren't affected by the freeze, he added.

John Raap, business manager for Olsen Brothers Farm in Prosser, said he pulled out a few acres of the farm's Chardonnay grapes to plant other varieties in demand.

Raap said wine grape growers in Washington have become experienced in recognizing the microclimates within the rolling hills in the state's viticulture areas, learning which grapes grow best in certain areas.

Olsen Brothers grows about 18 varieties of grapes on some 800 acres to sell to local winemakers and to create its own Olsen Estates wines.

"The demand is changing, not daily, but pretty close," Raap said. "We're seeing big demand for Riesling and Pinot Gris in the warmer sites and a little demand for high-end blenders, like Malbec."

Champoux agreed that Washington winemakers are getting more ambitious and creative, wanting to experiment with lesser known varieties like Malbec to use in blends and for new varietal wines. Until 2007, acres of Malbec grapes were added into the USDA's "other" category, in which small amounts of vineyard acres of lesser-known varieties are lumped together.

Last year, enough Malbec was planted throughout the state -- 700 acres -- for the varietal to be listed on its own.

That doesn't surprise Dan Nickolaus, operations manager for Vigneron Management, who said he'll be planting more of the lesser-known red varietal at Vigneron's 1,800-acre Wallula Vineyard overlooking the Columbia River.

"Malbec does really well here," Nickolaus said.

The grape is frequently used in blends, and winemakers are also turning to it as a variety to stand on its own.

"It makes a really big wine," he said.

Petit Verdot, which is listed under the USDA's other category, also is breaking away as a winemaker favorite to use in blended wines.

"There are several small wineries that are concentrating on making high-end blended reds," he said.

And Washington winemakers continue to demand more Riesling, which began a comeback in 2006, with a 27 percent increase in acreage over 2005. In 2007, wine grape growers planted an addition 2,200 acres.

Of the total wine grapes produced in the state, 53 percent are white varieties and 47 in red. And the top four major varieties -- Chardonnay, Riesling, Cabernet Sauvignon and Merlot -- accounted for 75 percent of the total state production.

Winemakers also got more for their grapes last year, according to the report. The average Chardonnay price increased $25 from 2006, to $808 per ton and the average Riesling price jumped $28 to $744 per ton in 2007.

But the price for Cabernet Sauvignon dropped $36 from 2006. The 2007 vintage was valued at an average of $1,225 per ton.

Sangiovese grapes captured the highest average price per ton in 2007, at $1,566.

Champoux said he believes prices will continue to increase in 2008 and the industry remains healthy -- mainly due to the popularity and quality of Washington's wines.

"I think the whole Washington wine industry will continue to increase in size to keep up with demand," Champoux said.