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Winegrape yield and revenue variability in Australia

Author

Listed:
  • German Puga

    (Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Australia)

  • Kym Anderson

    (Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia)

Abstract

While winegrowers usually want to achieve consistent yield targets, there is a high degree of yield and price (and hence gross revenue) variability in winegrape production. The aim of this study is to determine whether there are differences in yield and revenue variability across climates, varieties, and regions in Australia. To do so, we estimate statistical models of the impact of those three variables on the coefficient of variation of yield and gross revenue per hectare. The results suggest that hotter and drier regions exhibit lower inter-annual yield variability, something that may be largely explained in the past by the use of irrigation but which may change in the future with climate change and higher water prices. The results also show that there are sometimes differences in yield and revenue variability not only across regions but also between varieties.

Suggested Citation

  • German Puga & Kym Anderson, 2023. "Winegrape yield and revenue variability in Australia," Wine Economics Research Centre Working Papers 2023-03, University of Adelaide, Wine Economics Research Centre.
  • Handle: RePEc:adl:winewp:2023-03
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    File URL: https://media.adelaide.edu.au/economics/papers/winedoc/winewp2023-03.pdf
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    More about this item

    Keywords

    grape yield; grape revenue; coefficient of variation; viticulture; climate change; alternate bearing;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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