Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-27T09:54:35.893Z Has data issue: false hasContentIssue false
  • English
  • Français

Modeling Grape Price Dynamics in Mendoza: Lessons for Policymakers

Published online by Cambridge University Press:  30 October 2019

German Puga ,
James Fogarty ,
Atakelty Hailu  and
Alejandro Gennari
German Puga
Affiliation:
Agricultural and Resource Economics, School of Agriculture and Environment, University of Western Australia, 35 Stirling Highway, Crawley WA6009, Australia; e-mail: 22284819@student.uwa.edu.au.
James Fogarty*
Affiliation:
Agricultural and Resource Economics, School of Agriculture and Environment, University of Western Australia, 35 Stirling Highway, Crawley WA6009, Australia
Atakelty Hailu
Affiliation:
Agricultural and Resource Economics, School of Agriculture and Environment, University of Western Australia, 35 Stirling Highway, Crawley WA6009, Australia; e-mail: atakelty.hailu@uwa.edu.au.
Alejandro Gennari
Affiliation:
National University of Cuyo, Department of Economics, Policy and Rural Administration, Provincia de Mendoza, Argentina; e-mail: agennari@fca.uncu.edu.ar.
*
e-mail: james.fogarty@uwa.edu.au (corresponding author).
Get access Rights & Permissions [Opens in a new window]

Abstract

Mendoza is the main wine-producing province of Argentina, and the government is currently implementing a range of policies that seek to improve grape grower profitability, including a vineyard replanting program. This study uses a dataset of all grape sales recorded in Mendoza from 2007 to 2018, totaling 90,910 observations, to investigate the determinants of grape prices. Key findings include: smaller volume transactions receive lower-average prices per kilogram sold; the discount for cash payments is higher in less-profitable regions; and the effect of wine stock levels on prices is substantial for all varieties. Long-run predicted prices are also estimated for each variety, and region; and these results suggest that policymakers should review some of the varieties currently used in the vineyard replanting program. (JEL Classifications: Q12, Q13, Q18)

Keywords

autoregressive distributed laggrape pricehedonic priceMendoza
Type
Articles
Information
Journal of Wine Economics , Volume 14 , Issue 4 , November 2019 , pp. 343 - 355
Copyright
Copyright © American Association of Wine Economists 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors thank an anonymous referee and the editorial team at JWE (especially Karl Storchmann) for their comments and assistance in progressing this paper to its final version.

References

Abihagle, C. E., Aciar, A., and Gonzalez Luque, L. (2015). Distribución de la renta vitivinícola: Análisis y propuestas para mejorar y estabilizar la participación del sector primario. Mendoza.Google Scholar
Altschuler, B. (2012). Social boundaries and asymmetries in today's winemaking in Mendoza. Cuadernos de Desarrollo Rural, 9(68), 151–175.Google Scholar
Anderson, K., Nelgen, S., and Pinilla, V. (2017). Global Wine Markets, 1860 to 2016: A Statistical compendium. Adelaide: University of Adelaide.CrossRefGoogle Scholar
Argentinean Secretary of Agriculture (2017). Avanza el plan de reconversion vitivinicola en Mendoza. Buenos Aires: Ministerio de Agroindustria de la Nación.Google Scholar
Argentinean Wine Corporation (2018). Impacto de la Vitivinicultura en la Economía Argentina. Mendoza: Corporación Vivinícola Argentina.Google Scholar
Ashenfelter, O. (2017). The hedonic approach to vineyard site selection: Adaptation to climate change and grape growing in emerging markets. Journal of Wine Economics, 12(1), 3–15.CrossRefGoogle Scholar
Bekkerman, A., and Brester, G. W. (2019). Don't judge a wine by its closure: Price premiums for corks in the US wine market. Journal of Wine Economics, 14(1), 3–25.CrossRefGoogle Scholar
Cardebat, J. M., Faye, B., Le Fur, E., and Storchmann, K. (2017). The law of one price? Price dispersion on the auction market for fine wine. Journal of Wine Economics, 12(3), 302–331.CrossRefGoogle Scholar
Cardebat, J. M., and Figuet, J. M. (2019). The impact of exchange rates on French wine exports. Journal of Wine Economics, 14(1), 71–89.CrossRefGoogle Scholar
Cavallo, A., Cruces, G., and Perez-Truglia, R. (2016). Learning from potentially biased statistics. Brookings Papers on Economic Activity, 2016, 59–108.CrossRefGoogle Scholar
Costa-Font, M., Serra, T., Gil, M., and Gras, A. (2009). Explaining low farm-gate prices in the Catalan wine sector. International Journal of Wine Business Research, 21, 169–184.CrossRefGoogle Scholar
Cross, R., Plantinga, A. J., and Stavins, R. N. (2017). Terroir in the New World: Hedonic estimation of vineyard sale prices in California. Journal of Wine Economics, 12(3), 282–301.CrossRefGoogle Scholar
Daniel, C. J., and Lanata Briones, C. T. (2019). Battles over numbers: The case of the Argentine consumer price index (2007–2015). Economy and Society, 48, 127–151.CrossRefGoogle Scholar
Fuller, K. B., and Alston, J. M. (2012). The demand for California wine grapes. Journal of Wine Economics, 7(2), 192–212.CrossRefGoogle Scholar
Gergaud, O., Livat, F., and Song, H. (2018). Terrorism and wine tourism: The case of museum attendance. Journal of Wine Economics, 13(4), 375–383.CrossRefGoogle Scholar
Government of Mendoza (2017). Kerchner anuncio la extension del plan de reconversion vitivinicola de la zona Sur y Lavalle. Mendoza: Ministerio de Agroindustria de la Nación.Google Scholar
Goverment of Mendoza (2019). El Gobierno Reglamento el Fondo Anticiclico Vitivinicola. Mendoza: Mendoza: Ministerio de Agroindustria de la Nación.Google Scholar
Miranda-Zanetti, M., Delbianco, F., and Tohmé, F. (2019). Tampering with inflation data: A Benford law-based analysis of national statistics in Argentina. Physica A: Statistical Mechanics and its Applications, 525, 761–770.CrossRefGoogle Scholar
Niklas, B., and Sadik-Zada, E. R. (2019). Income inequality and status symbols: The case of fine wine imports. Journal of Wine Economics: Selected Proceedings, 14(4). doi: 10.1017/jwe.2019.33.Google Scholar
Oczkowski, E. (2006). Modeling winegrape prices in disequilibrium. Agricultural Economics, 34(1), 97–107.CrossRefGoogle Scholar
Official Bulletin of Argentina (2019). Resolucion 3/2019. Available at www.boletinoficial.gob.ar/.Google Scholar
OIV (2018). OIV 2018 report on the world vitivinicultural situation. Available at http://www.oiv.int/en/oiv-life/oiv-2018-report-on-the-world-vitivinicultural-situation.Google Scholar
Reynolds, S. (2009). Analysing the South African table grape industry within a partial equilibrium framework. Agrekon, 48, 124–145.CrossRefGoogle Scholar
Tomsik, P., Stojanova, H., Sedlo, J., and Vajcnerova, I. (2016). Factors of profitability of the grapes production. Agricultural Economics (Zemědělská ekonomika), 62, 292–297.CrossRefGoogle Scholar
Volpe, R., Green, R., Heien, D., and Howitt, R. (2012). Estimating the supply elasticity of California wine grapes using regional systems of equations. Journal of Wine Economics, 5(2), 219–235.CrossRefGoogle Scholar
Weisong, M., Xiaoshuan, Z., Lingxian, Z., and Zettan, F. (2010). A structural model for analysis of fruit supply and demand applied to grapes in China. New Zealand Journal of Agricultural Research, 50, 1359–1365.CrossRefGoogle Scholar
Yilmaz, F., and Abdikoglu, D. I. (2017). Econometric analysis of the production and price of grapes in Turkey. In Arslan, H., Ali Içbay, M., and Reggiero, C. (eds.), Research on Humanities and Social Sciences: Communication, Social Sciences, Arts, 223–230. Pieterlen and Bern, Switzerland: Peter Lang AG.Google Scholar