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The Role of Contracts in Wine Grape Supply Coordination: An Overview

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  • Fraser, Iain

Abstract

In this paper the role of contracts in coordinating the supply of grapes between independent wine grape growers and wineries is examined. A review of technical issues that underpin the design and implementation of contracts provides insights into the wine industry. A review of the economics literature on contractual relations in the wine industry indicates that although grape contracts are important they are subject to a number of problems. In particular, the precise determination of grape quality is a source of tension, as are current pricing arrangements.

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File URL: http://purl.umn.edu/132539
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Bibliographic Info

Article provided by University of Melbourne, Melbourne School of Land and Environment in its journal Australasian Agribusiness Review.

Volume (Year): 11 (2003)
Issue (Month): ()
Pages:

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Handle: RePEc:ags:auagre:132539

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Web page: http://www.agrifood.info/review/

Related research

Keywords: contracts; supply; wine grape; growers; wineries; wine industry; grape quality; economics; contractual relations; Agribusiness; Demand and Price Analysis; Farm Management; Financial Economics; Marketing; Production Economics; Resource /Energy Economics and Policy; Teaching/Communication/Extension/Profession; ISSN 1442-6951;

References

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  1. Crocker, K.J. & Masten, S.E., 1988. "Pretia Ex Machina?: Prices And Process In Long-Term Contracts," Papers 10-88-2, Pennsylvania State - Department of Economics.
  2. A. Golan & H. Shalit, 1993. "Wine Quality Differentials In Hedonic Grape Pricing," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 311-321.
  3. Peter Bogetoft & Henrik Ballebye Olesen, 2002. "Ten rules of thumb in contract design: lessons from Danish agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(2), pages 185-204, June.
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Cited by:
  1. Olmos, Marta Fernandez & Martinez, Jorge Rosell, 2010. "The Quality-Quantity Trade-off in the Principal-Agent Framework," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), January.
  2. Steiner, Bodo E., 2009. "The Extent and Nature of Contracting in the Wine Supply-Chain When Moral Hazard is Present," Staff Paper Series 154127, University of Alberta, Department of Resource Economics and Environmental Sociology.
  3. Fraser, Iain, 2005. "Microeconometric analysis of wine grape supply contracts in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), March.

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