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Solvency and Performance of French Wineries in Times of Declining Sales: Co‐operatives and Corporations

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  • Declerck, Francis
  • Viviani, Jean-Laurent

Abstract

The paper assesses the ability of French wineries to prevail over the crisis of French wine in the years 2000. Corporations are distinguished from co‐operatives: Over the 2000‐2006 period in spite of sales fluctuations, French wineries did not increase their financial debt level substantially. Such result supports the traditional static trade‐off theory (TOT). Co‐operatives were able to absorb part of the impact of the wine crisis at the expense of their members, in increasing account payables to member. Corporations have not increased trade account payables to vine growers. In the mid‐2000s, the French wine crisis has not been strong enough to shake the financial structure of cooperatives and corporations. But co‐operatives look more affected. However, sales of French wines dropped a lot more in 2009 and financial data are not yet available to observe the consequences.

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Bibliographic Info

Paper provided by International European Forum on Innovation and System Dynamics in Food Networks in its series 2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria with number 100507.

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Date of creation: Oct 2010
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Handle: RePEc:ags:iefi10:100507

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Web page: http://www.fooddynamics.org/

Related research

Keywords: winery; co‐operative; strategy; debt; leverage; performance; wine; crisis; Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Production Economics; Research Methods/ Statistical Methods;

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Cited by:
  1. Saïsset, L.A. & Couderc, J.P. & Bou Saba, M., 2011. "Cooperative performance measurement proposal (a test with the cooperfic© tool for wine cooperatives in Languedoc-Roussillon)," Working Papers MOISA 201104, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.
  2. Saïsset, L.A. & Couderc, J.P., 2013. "Les trois dimensions de la gouvernance coopérative : à la recherche d'un équilibre instable. Le cas des caves coopératives en Languedoc-Roussillon [France]," Working Papers MOISA 201302, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.

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