The glass of wine that you are having with your dinner, whether in your own home, at a friend’s or a restaurant, is subsidized by the federal taxpayer whenever the growers who produced the grapes that went into the wine protected themselves from a financial loss due to crop failure by purchasing crop insurance. The subsidy has the effect of lowering the price of that glass of wine by reducing the full cost of growing the grapes provided the resulting economic gain is passed along at least in part to the winery and in turn to the vintner, retailer, and finally the consumer.
It follows that crop insurance is a blend of private and social insurance because the cost to the grower of insuring against a crop failure, which is included in the cost of production, no longer is entirely privatized. It is shared with the public through a taxpayer-supported subsidy.
Our objective in the following is to describe the need for crop insurance and its origins, the specific details of the protection for U.S. growers, the private and social costs of producing grapes, and the role of the Agriculture Department. In the following, we do not address table grapes, raisins, damaged vines, or federal area-wide crop insurance. That type of insurance protects the individual producer, not on the basis of his own personal loss, but on the average losses across the area where his vineyard is located. (ProAg nd, np).1 Much more research is needed for a more detailed account of insurance that focuses on wine grapes than is provided herein. To help facilitate that research we provide links to articles and books that examine in greater detail reinsurance, the history of wine grapes, licensing agents and brokers, the history of crop insurance prior to the New Deal, and written agreements between growers and insurers.
Our primary emphasis in the following is not on the grapes or the wine but on the human agents involved: the grower, the insurer, and the taxpayer.
Since the early 1990s, there has been a remarkable export boom of natural resource- based products from Chile, including wine, farmed salmon, forestry and wood products. This phenomenon is surprising, considering the monopolistic role played by advanced countries in these industries (e.g. Italy, France and Spain in the wine industry; Norway, Scotland and Canada in the salmon industry). It also raises questions on whether the conditions under which it is taking place are any different from those that in the past led to the repeated failures of a development model based mostly on the exports of natural resources. From a traditional sector totally oriented to the domestic market and in deep crisis due to political and economic instability, the Chilean wine industry has gained international recognition since the early 1990s. It has become a large export-oriented industry -over 60 percent of the production is currently exported- together with other non-traditional industries such as salmon. Chile has been gradually identified by international consumers as an ideal country for producing modern varietal (fresh and fruity), good-value-for-money wines, and it has won worldwide recognition in the wine community faster than any other country in modern history (Phillips, 2000). This is a striking achievement, considering that until the 1970s Chilean wines were confined to the niche of decent-but-not-great wines, based on few varieties cultivated and the relative homo- geneity of their taste. This paper analyses whether and how, under the globalizing trends that began in the last quarter of the twentieth century, Chile was able to transform some of its primary commodities such as wine into high-quality, diversified, processed goods, with increasing value-added content and export price per unit, thus becoming a platform for development. In particular, as a complement to previous studies, this paper looks specifically at the role of knowledge intensive services in the Chilean wine sector. It is based on the hypothesis is that these services have allowed Chilean wineries to add value to their wine exports and constantly improve their operations along the different stages of the value chain. This paper is structured as follows. Section 2 describes Chile’s remarkable wine export performance and reviews previous studies regarding the main factors that explain this expansion. Section 3 provides a description of the five main segments of the wine value chain and the multiple service inputs within each one of them. The motivations to produce these services in-house or subcontract are discussed in section 4. The results of a survey, carried out in the context of this study, to assess which services are produced in-house or outsourced are discussed in section 5. The last section concludes and provides suggestions for future research.
Little research has considered the potential influence of distant, external pressures on the implementation of firms’ ‘green’ innovations, nor how internal firm resources might moderate this relationship. By combining institutional and resource-based theories and examining 649 firms in Australia, I find that export intensity is positively associated with green innovations. Further, as women in leadership roles increases in firms, the relationship strengthens between export intensity and green innovations. The results also suggest that greater levels of absorptive capacity among firms strengthens the relationship between export intensity and green innovations. Contributions of the findings are discussed along with limitations and future research opportunities.
The aim of this study was to identify which attributes impacted the dynamic liking of cheese and wine individually as well as when consumed together. Three wines (a white one, Pouilly Loché; and two red ones Maranges and Beaujolais) and three cheeses (Comté, Époisses, Chaource) were individually evaluated by a group of 60 consumers using mono- intake Temporal Dominance of Sensations (TDS) with simultaneous hedonic ratings. The same data acquisition screen was used for all products showing a unique list of 14 descriptors (covering cheese and wine perception) and a hedonic scale for dynamical rating of liking. The dynamic hedonic data was associated to the TDS profiles obtaining Temporal Drivers of Liking (TDL). The nine wine-cheese associations were evaluated by multi-bite and multi-sip TDS, consumed in a free manner. Individually, Chaource had practically no TDL, in Comté mushroom flavor was a positive TDL, and in Epoisses salty was a negative TDL. All wines presented TDL, but negative were only present in the red ones: bitter, sour and astringent. In wines, the positive TDL were: fruity, spicy and woody. Dynamic perception changes had a bigger impact on liking in wine compared to cheese. For the associations, the negative TDL were only three and mostly wine related: sour (for 7/9 combinations), bitter (6/9) and astringent (5/9). Positive TDL were more varied (a total of 10 descriptors) and were related either to wine or cheese. As opposed to what was found in cheese alone, salty was a positive TDL in two of the combinations. It was observed that the dynamic sensory perception had a more important impact on liking in wine-cheese combinations than when consumed separately. This shows that TDS and TDL have a big potential in the study of food pairing which should be further exploited.
It is obvious that exchange rates inuence exports since they add a uctuating component to the costs or rather to the price in the destination country and therefore inuence the international competitive ability. Whether this in- uence on exports is of a special non-linear path dependence, called hysteresis, is investigated in this paper. To identify hysteresis, three methods are pre- sented and compared. First, the spurt method developed by Belke and Göcke , second, the Preisach addition method which was used by Hallett and Piscitelli  and third, the Preisach replacement technique which can be found in de Prince and Kannebley Junior . Both Preisach approaches use an algorithm provided by Piscitelli et al.  to derive the so called Preisach variable from the exchange rate time series. After nding hysteresis in export values the question arises if the hysteresis descends from hysteresis in prices or quantities, see Göcke and Werner . Therefore, the study analyses values, quantities and prices, i. e. unit values, of European wine exports to the USA. As the entry into the US market requires sunk costs, for example for dealing with the extensive regulations, see e. g. Beliveau and Rouse , FTA , the requirements for the appearance of hysteresis are conformed. Indeed, the esti- mations revealed hysteresis for values in case of Italy and Spain and for prices in case of Italy and France.
Overview Wine Production in Germany
Although grapevines have been cultivated in present day Germany since Roman times (e.g., Bassermann-Jordan, 1907), compared to European wine growing nations such as France, Italy, and Spain, Germany has never been a major wine producing country. Its geographical location between the 48th and 54th parallel and the resulting marginal climate restricts grape growing to the valleys of the Rhine river and its tributaries Ahr, Mosel, Nahe, and Main in the south-west. In addition, some professional viticulture, though at a much smaller scale, can also be found in the valleys of the Saale-Unstrut and the Elbe river in the eastern part of present day Germany (see Figure GER-1).
However, Germany in its current borders has only existed since 1990, when West and East Germany reunified (depicted in dark gray in Figure GER-1). At one time or another, a few other viticultural regions belonged to what was then called Germany (in light gray in Figure GER-1). The most significant one was certainly Alsace-Lorraine, which was part of the German Empire between 1871 and 1918, and, in some years, accounted for as much as a third of the entire German wine production. Similarly significant was the merger with Austria, which joined Nazi- Germany in 1938, and became the province Reichsgau Ostmark until 1945. A few somewhat smaller wine growing regions in Posen and Silesia (e.g., Zielona Góra, German Grünberg), now Poland, once belonged to Prussia and, before 1818, were virtually the only domestic wine suppliers within the Kingdom.
This study refers to Germany within its present day borders and all figures for “German wine production” will exclude Alsace-Lorraine, the Polish regions, and Austria by re-aggregating the production data of the official statistics.
The California Grape Crush Report includes summaries of quantities produced and estimates of the average prices and value of wine grapes crushed in California, and serves as an authoritative source of information on production and returns per ton by variety of wine grapes. The data provided in the Crush Report are used to calculate the total value of winegrape production as reported in the annual Agricultural Statistics reports published by the United States Department of Agriculture and in major industry publications. We use the differences among crush districts in the shares of production crushed to growers’ accounts to show that the current mechanism of calculating average statewide returns per ton understates the true total value of the crush by 4–16 percent. We show that a more accurate estimate of the total value and average price can be obtained if the prices of the wine grapes that are sold are used to infer the prices of wine grapes that are not sold before computing the weighted averages.
French Oak barrels are considered a vital input for the finest wines, and comprise a very large portion of wine production costs. Wineries in the United States purchase French oak barrels priced in Euros, and have the opportunity to pay for their barrels early, in April, with a discount or in September with no discount. Given the inherent complexities in fluctuating exchange rates and limited resources of the average winery, little consideration has been placed on this purchasing decision despite potentially large cost implications.
The present work analyzes historical and barrel-specific data over the last fifteen years to find a huge monetary advantage to early purchasing and obtaining the price discount, even accounting for exchange rate volatility and opportunity costs. Barrel-specific prices were obtained from Continuum Estate in Napa, California, though the authors provide detailed analysis and a broader interpretation to aid in practical decisions of typically structured wineries in the United States.
Early purchasing of French oak barrels over the past fifteen years, accounting for lost interest, would have decreased average winery costs by over $60,000 as compared to paying upon delivery. For larger producing-wineries, this savings is even more pronounced.
This is the first paper to investigate the existence of an optimal decision rule regarding the purchasing of wine barrels, a vital input to wine production. This is of interest to not only those involved in the growing industry of wine-making, media and wine connoisseurs, but also to any similarly structured firm facing early commitments at a reduced price.
We conduct a choice experiment where the number of labels vertically differentiating Chianti wines (Chianti, Chianti Classico, Chianti Classico Riserva, Chianti Classico Gran Selezione) is augmented incrementally in a between-subject design, eliciting both quality perceptions and wine choices. We find that quality expectations are endogenous to the labeling regime, and adding a high-quality label (e.g., Chianti Gran Selezione) decreases the perceived quality of all other Chianti wines (comparative stigma). A model conditioning on subjective quality perceptions with heterogeneous WTP for quality is then proposed, and estimated via random parameter multinomial logit. The endogeneity problem arising from using subjective beliefs as regressors is addressed by means of a control-function approach. Results are compared to reduced form approaches where the marginal utility of quality and subjective perceptions are confounded in a single label-specific estimate, and the model is used to determine how much of the cannibalization observed after introducing higher-tier quality standards is attributable to restructuring of perceptions and comparative stigma.
Employing resource-based perspectives of the firm as a theoretical foundation, this article empirically examines the relationship between women in two different types of leadership roles and environmentally sustainable firms. I study an unbalanced panel data set of 2,006 wine firms in Australia for the period 2007–2014. The results suggests that when accounting for their individual, independent effects, women in technical leadership roles are positively associated with environmental sustainability, while women in professional leadership roles are not. However, the potential complementarities of women in both roles are explored, their interactive, co-joint (complementary) effect explains significantly more variance in the environmental sustainability variable than their individual effects. The results are discussed along with limitations and directions for future research.