BEESTOP Flashcards
Ecological
In addition to biophysical factors, there are ecological dimensions, namely the environmental constraint of water and sustainable practises in managing pests and diseases. Viticulture is a water intensive activity, with** 7L of water required to produce 1L of wine** and as a result, inadequate water supply is an ecological concern. A sustainable response to this is to** use drip irrigation. This aids growth by reducing water wastage through the minimisation of evaporation and targeting the vine’s root zone, enhancing the efficiency of the watering process. Moreover, winemakers can increase water retention through recycled water management systems, mulching and companion crops, further increasing their water efficiency. A further ecological dimension is the combatting of diseases including Powdery and Downey Mildew which cause infections such as ‘Noble Rot’. **An implication of this is that excess moisture in the grape is drained, resulting in sugar concentrations rising excessively, making them unsuitable for winemaking purposes. In the USA and Australia, the response to these has seen an ecological sustainable technique, using sulphur and copper prophylactic sprays which stimulate growth of positive fungi and bacteria on vines. With regards to pests, French vineyards are faced with aphids and caterpillars. Generally, low populations are ignored, and they use non-residual bio-degradable sprays such as Bordeaux mixture. Moreover, they influence a movement of insects, utilising hormonal lures to detract them away from the vineyard.
Biophysical
Biophysical factors influence the nature of global winemaking through their impact on the terroir of wine-growing regions. Firstly, temperature influences terroir, reflected in the taste of wine. Grapes grown in warmer and dryer conditions have stronger flavours than those grown in cooler regions as the lack of moisture results in flavours being less diluted. Secondly, sunlight exposure is another driver behind the terroir of regions and has impacts on the phenology of wine. Similar to temperature, higher levels of sunlight impact the level of moisture on vineyards through evaporation and photosynthesis, allowing for a higher evaporation rate and for a longer time, advancing the growth of a vintage. This has impacted the nature of global winemaking as many farms deliberately plant vines on slopes with a northerly aspect in the Southern hemisphere and a southern aspect in the Northern hemisphere due to increased sunlight exposure. Thirdly, soil has an impact on the taste of wine. Edaphic conditions appropriate for quality winemaking tend to be characterised by low fertility and a shallow soil, however, the emergence of transnational corporations in the global winemaking industry, such as Yellow Tail wines and E&J Gallo, has led to a change in the soils selected for vineyards, as deeper soils with water reserves are more beneficial for bulk-wine production.
Economic
Equally important are the economic factors that influence the nature and future directions of viticulture. Firstly, the dominance of Transnational Corporations in the wine industry allows them to benefit from economies of scale. Subsequently, they can produce wine at a lower price, for example, US brand E&J Gallo produce in 3 continents under 10 labels to meet consumer demand. Additionally, with the rise in New World wine producers, Old World winemakers have struggled to adapt to changing economic conditions. For example, the adoption of large-scale practices allows New World wine producers to store wine at costs of 0.25USD/bottle cheaper than Old World wine producers. As a result, the winemaking industry is likely to rely largely in the adoption of New World capital-intensive practices. This differential manifests to an even greater extent in the harvesting process, with** mechanised harvesting being 233% cheaper, and twice as fast as handpicking.** As a result of these competitive advantages, New World producers have experienced significant growth, and are expected to grow in the future. China’s wine exports grew by 1031% in 2013. In terms of future directions, the number of cases of wine produced in the** US is expected to increase by 49% from 2010-2030, **reflecting the growth of New World winemaking. Therefore, it can be seen that as a result of economic factors, New World winemakers are becoming more prominent in markets than Old World producers.
Socio-Cultural
Socio-cultural factors have also resulted in changes to the nature of global winemaking. Firstly, public perception of organic products as healthier has contributed to the growing demand for organic wines. For example, Australia’s Tamburlaine Organic Wines is the largest producer of organic wine and caters to this ever-expanding market. Operating under a highly specialized Environmental Management System (EMS), it focuses on organic soil/pest control and sustainable water management. Additionally, a **growth of China’s middle class has led to a change in lifestyles with a demand for western goods. **This has made China the 3rd highest wine consuming country and accounting for 11% of production. There is future market potential with 37 million Chinese expected to reach drinking age by 2025 and the soon reviews of the imposed tariff on AUS. Moreover, the 2018 Mordor Intelligence Report on the wine industry revealed that 36% of US wine drinkers are millennials, consuming 150m cases in 2015 alone. The implication of this is a need to satisfy this demographic, who have demanded blue wine varieties. Van Loveren is a South African winery who produces this blend of red and white grapes which is imported by the USA. Overall, it can be seen that sociocultural factors through changing consumer preferences have resulted in a shift in the nature of global viticulture.
Technological
Technological factors through transportation and biotechnology have influenced the future directions of the global winemaking. New World winemakers have placed significant focus on the** rationalization of their processes in order to cut costs, subsequently allowing them to boost their output while sustaining low prices.** As they are not limited by regulations such as appellation controls, New World winemakers embrace technological innovation. Developments in transportation and storage processes have allowed for greater efficiency in terms of time and cost when moving and storing wine. For example, the adoption of large-scale practices allows New World wine producers to store wine at costs of 0.25USD/bottle cheaper than Old World wine producers. As a result, the winemaking industry is likely to rely largely in the adoption of New World capital-intensive practices. This differential manifests to an even greater extent in the harvesting process, with mechanised harvesting being 233% cheaper, and twice as fast as handpicking. As a consequence of these competitive advantages, New World producers have experienced significant growth, and are expected to grow in the future. Furthermore, biotechnology has been used to created** genetically modified vines **with favourable attributes. For example, the CSIRO has been working on creating vines that are resistant to powdery and downy mildew, a fungal disease that flourishes in moist conditions. However, the use of GMOs is currently limited due to the ethical issues surrounding their implementation.
Political
Political factors through the liberalisation of trade barriers has resulted in the globalisation of the winemaking industry. Between 1960-2016, through GATT and WTO agreements, the average wine tariff declined from 50% to 9%. As a result, export markets flourished, for example, China, saw a 1031% growth in its wine exports in 2013. The liberalisation of trade barriers has also extended the spatial patterns of the global winemaking industry to be more interconnected. For example, **NAFTA (1995) liberalised trade barriers between Canada, Mexico and the USA. Consequently, US wine exports to Canada have grown by 1125% **since the agreementʼs creation. By extension, the China Australia Free Trade Agreement reduced wine tariffs to 0% in 2019, giving advantages over European counterparts. More recently, this agreement has been affected by the political relationship between Australia and China after it joined Western allies in seeking a probe into the origins of COVID-19. As a result, in Nov. 2020, China imposed trade-ending tariffs of 220%. Ultimately, Old World winemakers are steadfast in their decision to remain protected through artificial trade barriers, whilst New World producers are operating in free-trade environments. Thus, the current political context of the global economy will greatly influence the future directions of global viticulture as it drives the gap between Old World and New World wines.
Organisational
Organisational factors have also impacted the global winemaking industry with the future of the economic activity lying primarily in the hands of New World winemakers. Old World wine making regions are limited by organisational factors such as appellation controls, which force Old World operators to adhere to traditional practices and regulatory standards. For example, French controls limit wine production to 50 hectolitres of wine per hectare of land used for grape growing. While these regulations have allowed Old World regions to preserve the prestige and image associated with their wines, they have led to a decline in the industry. Consequently, they have struggled to compete with New World winemakers, whose processes are twice as fast and 233% cheaper. The impacts of appellation controls on the industry can be seen in the 16.2% decline of Germanyʼs wine exports in 2013, while Chinaʼs exports grew by 1031%. This is furthered in the decline in the Old World’s production levels, accounting formu This shift to the New World is seen further in the future of the industry, with the number of cases of wine produced in the US increased by 49.6% from 2010-2013, reflecting the growth of New World wines. Therefore, as a result of organisational factors limiting the growth of Old World industries, the future directions of global winemaking lie strongly in the growth of the New World.
