Factors of profitability of the grapes production

https://doi.org/10.17221/258/2015-AGRICECONCitation:Tomsik P., Stojanova H., Sedlo J., Vajcnerova I. (2016): Factors of profitability of the grapes production. Agric. Econ. – Czech, 62: 292-297.
download PDF
The paper analyses the relationships between the profitability of viticulture on the one hand and the sugar content and grapes yield in viticulture in the Czech Republic between 1995 and 2014 on the other hand. The paper aims to find out which of these has had a greater impact on the viticulture profitability in the Czech Republic over the last twenty years. One of the frequently debated questions is whether a higher yield of grapes may also bring a high or moderately above average sugar content, and also whether the production for sale is profitable. The answer can be achieved either via the micro-appraisal (repeatable and many times conducted experiments) or via the macro-appraisal – collecting average data for the appraised region. For this paper, the macro-appraisal was chosen, i.e. the statistical survey for the Czech Republic between 1995 and 2014. The period of 20 years comes from an annual examination conducted by the Association of Winemakers of the Czech Republic on the grapes yields in their members. In the Czech Republic, the price in the grapes market is set depending on the variety of vine and sugar content. It follows from the 20-year statistics of the Association of Winemakers CR, that the profitability of grapes production for sale is not achieved by the sugar content but by the per hectare yield. The yield per hectare should vary between 5.5 and 7 t/ha (tonne per hectare) at the average sugar content of 18.5 to 21 oNM (between 11.0 and 12.5% volume of the potential alcohol). The grapes yield of more than 6 t/ha does not increase the profitability because the price offered by the purchasing companies decreases.  
References:
Amadieu P., Couderc J.P., Viviani J.L. (2013): Financial Reaction to the Business Cycle in Periods Difficulties: The Case of French Wine Companies. Wine Economics. Quantitative Studies and Empirical Applications. Pelgrave Macmillan, UK: 200–228.
 
Barker III Vincent L., Patterson Jr Paul W., Mueller George C. (2001): Organizational Causes and Strategic Consequences of the Extent of Top Management Team Replacement During Turnaround Attempts. Journal of Management Studies, 38, 235-270  https://doi.org/10.1111/1467-6486.00235
 
Bowen Deborah J., Tomoyasu Naomi, Anderson Marin, Carney Maureen, Kristal Alan (1992): Effects of Expectancies and Personalized Feedback on Fat Consumption, Taste, and Preference. Journal of Applied Social Psychology, 22, 1061-1079  https://doi.org/10.1111/j.1559-1816.1992.tb00942.x
 
Combris Pierre, Lange Christine, Issanchou Sylvie (2007): Product Information, Hedonic Evaluation, and Purchase Decision: an Experimental Study of Orange Juice. Journal of Wine Economics, 2, 40-54  https://doi.org/10.1017/S1931436100000286
 
Fevrier P., Visser M. (2004): A study of consumer behavior using laboratory data. Experimental Economics, 7: 93–114. https://doi.org/10.1023/A:1026266122863
 
Foltínová A., Špička J. (2014): The use of controlling in agricultural enterprises and their competitiveness. Agricultural Economics – Czech, 60: 314–322.
 
Foltýn I., Zedníčková I. (2010): Rentabilita zemědělských komodit, ekonomicko-matematická predikce. (Profitability of Agricultural Commodities, Economic-Mathematical Predictions.) UZEI, Praha.
 
Galizzi M.M., Buonanno P., Caggiano G., Leonida L. (2008): Expert and peer pressure in food and wine tasting: evidence from a pilot experiment. Enometrica, 1: 51–68.
 
Galizzi M.M., Reiley D. (2012): An Identification Problem: Economists at a Wine Tasting Experiment. Discussion paper. Behavioral Research Lab., London School of Economics.
 
Grinyer P., McKiernan P. (1990): Generating major change in stagnating companies. Strategic Management Journal, 11: 131–145.
 
Chowdhury Shamsud D., Lang James R. (1996): Turnaround in small firms: An assessment of efficiency strategies. Journal of Business Research, 36, 169-178  https://doi.org/10.1016/0148-2963(95)00119-0
 
Koráb P. (2012): European Wine Policy and Perceptions of Moravian Winemakers: Theoretical Background with an Empirical Study. MENDELU Working Papers in Business and Economics, 23/2012.
 
Kučerová R. (2014): Factors of the attractiveness of Slovak wine market and their influence on the Czech wine export to Slovakia. Agricultural Economics – Czech, 60: 430–439
 
Lange Christine, Issanchou Sylvie, Combris Pierre (2000): Expected versus experienced quality: trade-off with price. Food Quality and Preference, 11, 289-297  https://doi.org/10.1016/S0950-3293(99)00074-9
 
Lintner T., Bečvářová V. (2014): Předpoklady konkurenceschopnosti zemědělského podniku v komoditní vertikále víno. (Prerequisites of farm competitiveness in commodity vertical of wine.) In: Sborník příspěvků z mezinárodní vědecké konference Region v rozvoji společnosti 2014. 1st ed. Mendelova univerzita v Brně, Brno: 524–531.
 
Makens James C. (1965): Effect of brand preference upon consumers perceived taste of turkey meat.. Journal of Applied Psychology, 49, 261-263  https://doi.org/10.1037/h0022455
 
NEVID JEFFREY S. (1981): EFFECTS OF BRAND LABELING ON RATINGS OF PRODUCT QUALITY. Perceptual and Motor Skills, 53, 407-410  https://doi.org/10.2466/pms.1981.53.2.407
 
Pailler J. (1997): Contribution á l´étude des couts de revient, des prix de vente et des strategies commerciales dans la région Sait-Emilion 1996. ENITA de Bordeaux.
 
Pailler J. (1993): Des couts comptables aux couts economiques: L´influence des charges supplementives sur les couts de production des vins de Bordeaux en 1992. ENITA de Bordeaux.
 
Pailler J. (1995): Des couts de production aux couts de revient: Calcul et analyse des données de 19 exploitations viticoles du Médoc pour l´année 1994. ENITA de Bordeaux.
 
Pearce John A., Michael Steven C. (2006): Strategies to prevent economic recessions from causing business failure. Business Horizons, 49, 201-209  https://doi.org/10.1016/j.bushor.2005.08.008
 
Pearce John A., Robbins D.Keith (1994): Entrepreneurial recovery strategies of small market share manufacturers. Journal of Business Venturing, 9, 91-108  https://doi.org/10.1016/0883-9026(94)90003-5
 
Poláčková J. (2010): Nákladovost zemědělských výrobků za léta 2001–2007. (Costs of agricultural products during the years 2001–2007.) IAEI, Prague.
 
Peterová J. (2010): Ekonomika výroby a zpracování zemědělských produktů. (Economics of production and processing of agricultural products.) 4th ed. CULS, Prague.
 
Samuelson P.A., Nordhaus W D. (1991): Ekonomie. (Economy.) 1st ed. Svoboda, Praha.
 
Schätzel O., Doka F., Mahlendorf-Schäfer K. (2004): Jak úspěšně prodávat víno: vinařský marketing v praxi. (How successfully sell wine: wine marketing in practice.) Svaz vinařů České republiky, Velké Bílovice.
 
Synek M. et al. (1996): Manažerská ekonomika. 1st ed. Grada, Praha.
 
Syrovátka P., Chládková H., Žufan P. (2014): Wine consumption in the Czech Republic and prices of alcohol. Agricultural Economics – Czech, 60: 89–98.
 
Syrovátka Pavel, Chládková Helena (2014): The Influence of Price on Supply of the Czech Producers of Bottled Red Quality Wine. Procedia Economics and Finance, 12, 654-661  https://doi.org/10.1016/S2212-5671(14)00390-6
 
SYROVÁTKA Pavel, ŽUFAN Pavel (2014): PRICE ELASTICITY OF SUPPLY OF BOTTLED QUALITY WHITE WINE IN THE CZECH REPUBLIC. Review of Agricultural and Applied Economics, 17, 32-37  https://doi.org/10.15414/raae.2014.17.02.32-37
 
Török A., Tóth J. (2013): Open characters of innovation management in the Hungarian wine industry. Agricultural Economics – Czech, 59: 430–438.
 
Wardle Jane, Solomons Wendy (1994): Naughty but nice: A laboratory study of health information and food preferences in a community sample.. Health Psychology, 13, 180-183  https://doi.org/10.1037/0278-6133.13.2.180
 
Amadieu P., Couderc J.P., Viviani J.L. (2013): Financial Reaction to the Business Cycle in Periods Difficulties: The Case of French Wine Companies. Wine Economics. Quantitative Studies and Empirical Applications. Pelgrave Macmillan, UK: 200–228.
 
Barker III Vincent L., Patterson Jr Paul W., Mueller George C. (2001): Organizational Causes and Strategic Consequences of the Extent of Top Management Team Replacement During Turnaround Attempts. Journal of Management Studies, 38, 235-270  https://doi.org/10.1111/1467-6486.00235
 
Bowen Deborah J., Tomoyasu Naomi, Anderson Marin, Carney Maureen, Kristal Alan (1992): Effects of Expectancies and Personalized Feedback on Fat Consumption, Taste, and Preference. Journal of Applied Social Psychology, 22, 1061-1079  https://doi.org/10.1111/j.1559-1816.1992.tb00942.x
 
Combris Pierre, Lange Christine, Issanchou Sylvie (2007): Product Information, Hedonic Evaluation, and Purchase Decision: an Experimental Study of Orange Juice. Journal of Wine Economics, 2, 40-54  https://doi.org/10.1017/S1931436100000286
 
Fevrier P., Visser M. (2004): A study of consumer behavior using laboratory data. Experimental Economics, 7: 93–114. https://doi.org/10.1023/A:1026266122863
 
Foltínová A., Špička J. (2014): The use of controlling in agricultural enterprises and their competitiveness. Agricultural Economics – Czech, 60: 314–322.
 
Foltýn I., Zedníčková I. (2010): Rentabilita zemědělských komodit, ekonomicko-matematická predikce. (Profitability of Agricultural Commodities, Economic-Mathematical Predictions.) UZEI, Praha.
 
Galizzi M.M., Buonanno P., Caggiano G., Leonida L. (2008): Expert and peer pressure in food and wine tasting: evidence from a pilot experiment. Enometrica, 1: 51–68.
 
Galizzi M.M., Reiley D. (2012): An Identification Problem: Economists at a Wine Tasting Experiment. Discussion paper. Behavioral Research Lab., London School of Economics.
 
Grinyer P., McKiernan P. (1990): Generating major change in stagnating companies. Strategic Management Journal, 11: 131–145.
 
Chowdhury Shamsud D., Lang James R. (1996): Turnaround in small firms: An assessment of efficiency strategies. Journal of Business Research, 36, 169-178  https://doi.org/10.1016/0148-2963(95)00119-0
 
Koráb P. (2012): European Wine Policy and Perceptions of Moravian Winemakers: Theoretical Background with an Empirical Study. MENDELU Working Papers in Business and Economics, 23/2012.
 
Kučerová R. (2014): Factors of the attractiveness of Slovak wine market and their influence on the Czech wine export to Slovakia. Agricultural Economics – Czech, 60: 430–439
 
Lange Christine, Issanchou Sylvie, Combris Pierre (2000): Expected versus experienced quality: trade-off with price. Food Quality and Preference, 11, 289-297  https://doi.org/10.1016/S0950-3293(99)00074-9
 
Lintner T., Bečvářová V. (2014): Předpoklady konkurenceschopnosti zemědělského podniku v komoditní vertikále víno. (Prerequisites of farm competitiveness in commodity vertical of wine.) In: Sborník příspěvků z mezinárodní vědecké konference Region v rozvoji společnosti 2014. 1st ed. Mendelova univerzita v Brně, Brno: 524–531.
 
Makens James C. (1965): Effect of brand preference upon consumers perceived taste of turkey meat.. Journal of Applied Psychology, 49, 261-263  https://doi.org/10.1037/h0022455
 
NEVID JEFFREY S. (1981): EFFECTS OF BRAND LABELING ON RATINGS OF PRODUCT QUALITY. Perceptual and Motor Skills, 53, 407-410  https://doi.org/10.2466/pms.1981.53.2.407
 
Pailler J. (1997): Contribution á l´étude des couts de revient, des prix de vente et des strategies commerciales dans la région Sait-Emilion 1996. ENITA de Bordeaux.
 
Pailler J. (1993): Des couts comptables aux couts economiques: L´influence des charges supplementives sur les couts de production des vins de Bordeaux en 1992. ENITA de Bordeaux.
 
Pailler J. (1995): Des couts de production aux couts de revient: Calcul et analyse des données de 19 exploitations viticoles du Médoc pour l´année 1994. ENITA de Bordeaux.
 
Pearce John A., Michael Steven C. (2006): Strategies to prevent economic recessions from causing business failure. Business Horizons, 49, 201-209  https://doi.org/10.1016/j.bushor.2005.08.008
 
Pearce John A., Robbins D.Keith (1994): Entrepreneurial recovery strategies of small market share manufacturers. Journal of Business Venturing, 9, 91-108  https://doi.org/10.1016/0883-9026(94)90003-5
 
Poláčková J. (2010): Nákladovost zemědělských výrobků za léta 2001–2007. (Costs of agricultural products during the years 2001–2007.) IAEI, Prague.
 
Peterová J. (2010): Ekonomika výroby a zpracování zemědělských produktů. (Economics of production and processing of agricultural products.) 4th ed. CULS, Prague.
 
Samuelson P.A., Nordhaus W D. (1991): Ekonomie. (Economy.) 1st ed. Svoboda, Praha.
 
Schätzel O., Doka F., Mahlendorf-Schäfer K. (2004): Jak úspěšně prodávat víno: vinařský marketing v praxi. (How successfully sell wine: wine marketing in practice.) Svaz vinařů České republiky, Velké Bílovice.
 
Synek M. et al. (1996): Manažerská ekonomika. 1st ed. Grada, Praha.
 
Syrovátka P., Chládková H., Žufan P. (2014): Wine consumption in the Czech Republic and prices of alcohol. Agricultural Economics – Czech, 60: 89–98.
 
Syrovátka Pavel, Chládková Helena (2014): The Influence of Price on Supply of the Czech Producers of Bottled Red Quality Wine. Procedia Economics and Finance, 12, 654-661  https://doi.org/10.1016/S2212-5671(14)00390-6
 
SYROVÁTKA Pavel, ŽUFAN Pavel (2014): PRICE ELASTICITY OF SUPPLY OF BOTTLED QUALITY WHITE WINE IN THE CZECH REPUBLIC. Review of Agricultural and Applied Economics, 17, 32-37  https://doi.org/10.15414/raae.2014.17.02.32-37
 
Török A., Tóth J. (2013): Open characters of innovation management in the Hungarian wine industry. Agricultural Economics – Czech, 59: 430–438.
 
Wardle Jane, Solomons Wendy (1994): Naughty but nice: A laboratory study of health information and food preferences in a community sample.. Health Psychology, 13, 180-183  https://doi.org/10.1037/0278-6133.13.2.180
 
download PDF

© 2020 Czech Academy of Agricultural Sciences