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Why the first cooperative wineries produced poor quality wine, why they were so scarce and why they were set up: evidence from Spain

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  • Samuel Garrido

    (Universitat Jaume I, Spain)

Abstract

Since the 1950s a substantial part of all European wine has come from cooperative wineries, which since their appearance around the year 1900 have mostly produced cheap, poor quality wine. This paper discusses whether this has been a consequence of their inability to solve a collective action problem. After showing that this is not so, it examines why cooperatives concentrated on the production of bad wine and studies why their market share was small before the 1950s. Lastly, it uses data from Spain to analyse the factors determining the creation of cooperative wineries in the early twentieth century.

Suggested Citation

  • Samuel Garrido, 2018. "Why the first cooperative wineries produced poor quality wine, why they were so scarce and why they were set up: evidence from Spain," Documentos de Trabajo (DT-AEHE) 1807, Asociación Española de Historia Económica.
  • Handle: RePEc:ahe:dtaehe:1807
    as

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    References listed on IDEAS

    as
    1. Jordi Planas, 2016. "The emergence of winemaking cooperatives in Catalonia," Business History, Taylor & Francis Journals, vol. 58(2), pages 264-282, March.
    2. Henriksen, Ingrid & Lampe, Markus & Sharp, Paul, 2011. "The role of technology and institutions for growth: Danish creameries in the late nineteenth century," European Review of Economic History, Cambridge University Press, vol. 15(3), pages 475-493, December.
    3. Ingrid Henriksen & Eoin McLaughlin & Paul Sharp, 2015. "Contracts and cooperation: the relative failure of the Irish dairy industry in the late nineteenth century reconsidered," European Review of Economic History, Oxford University Press, vol. 19(4), pages 412-431.
    4. Ingrid Henriksen & Eoin McLaughlin & Paul Sharp, 2015. "Contracts and cooperation: the relative failure of the Irish dairy industry in the late nineteenth century reconsidered," European Review of Economic History, Oxford University Press, vol. 19(4), pages 412-431.
    5. repec:cge:wacage:2016 is not listed on IDEAS
    6. Henriksen, Ingrid & Hviid, Morten & Sharp, Paul, 2012. "Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives," The Journal of Economic History, Cambridge University Press, vol. 72(1), pages 197-224, March.
    7. Dieter Pennerstorfer & Christoph R. Weiss, 2013. "Product quality in the agri-food chain: do cooperatives offer high-quality wine?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(1), pages 143-162, February.
    8. James Simpson, 2011. "Creating Wine: The Emergence of a World Industry, 1840-1914," Economics Books, Princeton University Press, edition 1, number 9479.
    9. Nilsson, Jerker, 2001. "Organisational principles for co-operative firms," Scandinavian Journal of Management, Elsevier, vol. 17(3), pages 329-356, September.
    10. Francisco J. Medina-Albaladejo, 2015. "Co-operative wineries: Temporal solution or efficient firms? The Spanish case during late Francoism, 1970-1981," Business History, Taylor & Francis Journals, vol. 57(4), pages 589-613, June.
    11. Samuel Garrido, 2017. "Sharecropping was sometimes efficient: sharecropping with compensation for improvements in European viticulture," Economic History Review, Economic History Society, vol. 70(3), pages 977-1003, August.
    12. Paul Sharp & Ingrid Henriksen & Markus Lampe, 2011. "The role of technology and institutions for growth: Danish creameries in the late-19th century," Working Papers 11028, Economic History Society.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wine; Winemaking Cooperatives; Cooperation; Collective Action;
    All these keywords.

    JEL classification:

    • N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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