2.4 - 2.5: Factors Influencing Supply Flashcards
1
Q
How has the area under vine changed in the 21st century?
A
- the area under vine in Europe has fallen in the 21st century.
- outside Europe, there has been growth (establishment of new vineyard areas, e,g. China)
2
Q
Name 4 factors that have resulted in the loss of vineyard land, particularly in the EU.
A
- Vine pull schemes
- EU restrictions on planting new vineyards
- Conversion of vineyard land to other uses
- Abandonment of rural areas
3
Q
Give an example of a vine pull scheme.
A
- Mid 1980s, EU wine production was much greater than demand: ‘wine lake’
- Governments/EU paid growers to pull up poor quality vines (especially in southern France, Italy and Spain)
- Several hundred thousand hectares of European vines were pulled up
4
Q
Give an example of conversion of vineyard land to other uses/
A
Some growers in Elgin (South Africa) are removing their vineyards and replacing them with apples which give five times more the financial return than grapes.
5
Q
Name 3 common restrictions in the EU’s PDOs that can further limit the volume of wine produced.
A
- what grapes can be grown in that area
- maximum yields
- winemaking and maturation techniques
6
Q
Give an example of how GIs bring supply and demand in line?
A
- If research shows demand for inexpensive Sauvignon Blanc
- Then the retailer selects Sauvignon Blanc wines from around the world, switch country of origin from one year to the next to gain the cheapest price.
- If research showed demand for Marlborough Sauvignon Blanc
- Then retailer constrained to small area
- Producer has more control over the price.
7
Q
What is the role of PDO governing bodies when it comes to supply and demand?
A
- actively limit the amount of wine which may be released in any one year, ensuring the market is not oversupplied and maintaining price levels
8
Q
Give examples of two PDO governing bodies.
A
- Comité Champagne
2. Sherry Consejo Regulador
