(Wines&Vines) - When Washington state grapegrowers gather here next week for the annual Washington Association of Wine Grape Growers meeting, they’ll have more than viticulture on their minds. According to the latest vineyard and wineries market update by sponsor Northwest Farm Credit Services, opportunities for the industry in 2012 will be pinched by higher expenses. “Compressed margins may present challenges to growers as a result of static grape prices and rising production costs,” the report states. “Some regions, particularly in Eastern Washington, will be faced with potential crop shortfalls resulting from the continuing impacts of 2010 frost damage to vines.”