2.7 - 2.8: Grape Growing and Winemaking Costs

Question 1

Name some common examples of costs that will need to be incurred before the vineyard can become operational.

Answer 1

• surveying the land to check its suitability for viticulture and deciding which grapes are most suitable – this may include satellite imaging and taking soil samples;
• site clearance
• building access roads into the vineyard and between vineyard plots
• buying and planting vines
• buying stakes and wires (trellising)
• if the site is badly drained, installation of deep drainage channels and pipework
• in dry areas, establishing an irrigation system
• protection against weather hazards:
• protection from animal pests
• buying machinery and equipment (or renting)

Question 2

Once the vineyard is established, what are the main management costs?

Answer 2

1. labour
2. machinery & equipment running costs (e.g. fuel and maintenance)
3. vineyard treatments
4. water
5. electricity

Question 3

Once established, what are the main costs involved in making wine?

Answer 3

1. labour
2. machinery/equipment running costs
3. winery materials
   4 bought-in fruit
4. water
5. electricity

Question 4

What labour is required in the winery?

Answer 4

• An estate is likely to employ a small number of mainly skilled staff full-time.
• Some casual labour may be required around harvest time to help with manual tasks in the winery, such as unloading crates and moving equipment.

Question 5

What winery materials may need to be purchased?

Answer 5

• sugar for enrichment
• de-acidification agents
• acid for acidification
• cultured yeasts
• carbon dioxide or other inert gasses
• fining and filtering agents

Question 6

Why do wineries use large amounts of electricity?

Answer 6

• refrigeration
• ventilation
• presses
• pumps
• lighting

Question 7

If the wine is to be matured at the estate, what will the winery need?

Answer 7

• storage space
• new oak
• second hand barrels
• oak ships/staves
• labour
• cashflow

Question 8

If the winery bottles its own wine, what materials will be needed?

Answer 8

• bottles
• closures
• labels
• cartons
• pallets
• bottling line (ould be hired)
• labour
• designer (labels, sometimes bottles)