HSC People and Economic Activity

Question 1

Viticulture - Climate: Temperature

Answer 1

Ideal is 19 degrees for white grapes and 21 for reds. At ideal sunlight and temperature the vine produces the sugar needed for plant growth, influencing colour and flavour

Question 2

Viticulture - Climate: Sunlight

Answer 2

Due to photosynthesis plant growth determined by amount of sunlight. This makes aspect of slopes important eg. in Australia north and west facing gets more

Question 3

Viticulture - Climate: Wind

Answer 3

Excessive winds can damage grapes and also cause erosion via the removal of topsoil. Therefore, vineyards are rarely in high wind areas.

Question 4

Viticulture - Climate: Rainfall

Answer 4

Vines need approximately 700mm a year. In Australia, this is an issue, thus irrigation is required. Heavy rainfall can also cause major problems (erosion, fruit damage).

Question 5

Viticulture - Climate: Frost

Answer 5

Vines damaged when temps drop below -1. Especially in late autumn and early spring. Soil management, irrigation etc. used to alleviate the impact of frost.

Question 6

Viticulture - Climate: Soil

Answer 6

• Suitable viticulture soil is generally not fertile or especially deep
• Depth of soil determines root system
• Deep soil = bulk wine production, bigger roots and grapes but worse quality.
• Better for red wines.
• Shallow soil = high-quality wine, though less of it. Better for whites.
• Soil determines wine quality by water supply and temperature in and above soil

Question 7

Viticulture - Climate: Topography

Answer 7

• Elevation, aspect and incline of the vineyard must be taken into account
• Plain, flat land better than on undulating, sloping contours to prevent erosion
• The direction the vines are facing can affect vines growth rate and quality (aspect)
• Slope assists with drainage but a steep slope is susceptible to erosion altitude can impact temperature and therefore control the character of the grapes via the location above sea level

Question 8

Viticulture - Climate: Diseases and Pests

Answer 8

• Grapes are vulnerable to a range of diseases, many influenced by the climate eg.
• More humid summer = more diseases
• Fungus parasites are responsible for most grape diseases
• Diseases spread by insects or in the soil which makes them hard to control
• Fungal disease ‘downy mildew’ common in hunter valley; associated with high rainfall in the growing season
• Some diseases have been used to good effect g. Botrytis bunch root increases sugar.

Question 9

Viticulture - Climate: PESTS

Answer 9

• Grape Phylloxera – Worst grape pest worldwide.
• Mematode – Soil dwelling pest. Worm less than a millimetre long. Present in most soils.

Question 10

Viticulture - Ecological Factors: Sustainability

Answer 10

• Ecological sustainability - Meeting the needs of the present generation without compromising the ability of future generations to meet their needs, while enhancing quality of life now and into the future.
• Ecological dimension
• The relationship between people and the environment and the effect they have on each other.
• Ecological concerns associated with viticulture include:
• Increasing pest resistance to chemicals
• Soil compaction and erosion
• Poor water infiltration
• Low levels of organic matter in soils
• Excessive water use
• Excessive use of nitrogen-based fertilisers (nitrate leaching)

Question 11

Viticulture - Ecological Factors: Resource Use

Answer 11

• Organic wine - production of wine excluding the use of artificial chemical fertilizers, pesticides, fungicides and herbicides. The volume of wine, which is being organically produced, has been increasing rapidly as they become more than just a ‘healthy choice’. Organic viticulture includes non-intrusive soil management process, using strategies that minimise the use of pollutants.

Question 12

Economic Factors:

Answer 12

The general level of economic activity:
positive relationship between economic growth rates and wine consumption. As disposable incomes increase, so too do discretionary purchases of goods.
Shifts in consumer demands: keeps the market dynamic. Innovative styles and types of wines, and cheaper prices are popular with customers. Increasing Concentration Retail Power: because their purchasing power, large retailers are able to demand greater product consistency (hence shift from estate to branded) and favour higher quality wines (undermines branded wines).
Competition between the new and old world: drives down prices
Branding and marketing: labels and names now recognised globally

Consumer demand:
- The majority of the wine produced is consumed in the producer’s domestic market.
- The International Trade in Wine Is Increasing, with New World producers building Thai market share. The Volume and Value of global imports and export shave grown, despite a decline in the quantity of wine consumed in some key markets, Spanish and Italian declining by 0.6 and 0.4Mhl. Production in the US increased 6.9% to 20.5Mhl, Chile 12.6Mhl up 20%, Australia 11.6Mhl up 4.2%.

Question 13

Define Competitive Advantage:

Answer 13

Competitive advantage:
- A competitive advantage exists within the industry with advantages relating to natural conditions, location and the existence of a skilled workforce
- Australia’s wine industry has been growing since 1990 and is beginning to experience a greater number of strengths in terms of physical, human and market factors. Australias wine industry is strongly competitive because its strengths across the board

Question 14

Future Directions

Answer 14

The challenges facing the global viticulture and winemaking industries are complex and include:
- Tensions between traditional winemaking techniques and new ‘industrial’ production processes
- Changes in the spatial patterns of production and consumption:
- A decline in consumption in traditional winemaking and wine-consuming countries. European vineyards decreased by 32Mha (0.8%) between 2011-12.
- New emerging markets in Asia. Top 23 world wine buyers account for 91% of total imports in June 2013, slightly below the share of 2012.
- Increased competition from New World ‘branded’ wines. Vineyards outside Europe have slightly grown between 2011 and 2012 (+15Mha). Asian and American vineyards stable and increasing.
- Changes in consumer tastes and preferences, especially among the young.
- Competition from other alcoholic beverages.
- The process of globalisation and the emergence of global wine companies
- Changes in the marketing and retailing of wine.
- Ecological sustainability concerns: that is, minimising the environmental impacts of grape growing and winemaking
- The potential disruptive impacts of climate change
The global viticulture industry should continue to grow and expand both spatially and economically in the future. Globalisation increases demand for wine and allows producers to share knowledge. Therefore, new world producers should continue to emerge.

Question 15

Spatial Patterns of Viticulture

Answer 15

• Major growing regions are located between 30th and 50th degrees of latitude, in both the Northern and Southern hemispheres, where mean temperatures are between 10 and 20 degrees and rainfall is adequate
• Grapes are sometimes grown beyond this range and wine is sometimes made in unexpected places
• In these areas, grape growers have been able to adapt to the natural conditions
• Major wine producing and grape growing countries include Europe, North America, Australia, South America and South Africa
• Some of the world’s most famous wine-growing regions are France’s Loire valley and the regions of Bordeaux, Burgundy and Champagne; Italy’s Tuscany, Umbria and Veneto regions; Germany’s Rhine valley; California’s Napa and Sonoma valleys; Australia’s Hunter and Barossa valley

Question 16

Viticulture

Answer 16

The production of an alcoholic beverage via the crushing and fermentation of grapes

Question 17

Winemaking

Answer 17

The cultivation and harvesting of grapes

Question 18

Grape growing is a highly specialised agricultural system. Those managing the system need to be skilled in all aspects of the process, including:

Answer 18

• site selection and vineyard design
• species selection
• monitoring and control of pests and diseases
• fertiliser application
• irrigation
• plant management
• monitoring of fruit development
• deciding when to harvest

Question 19

Growth of Grapevine

Answer 19

It can take up to five years for a grapevine to develop and produce its first crop. Grapes develop at the end of the vine’s yearly life cycle, and each stage of the development is dependent on the previous stage. The vine draws its energy from the surrounding natural environment. The root system, for example, absorbs water and minerals from the soil.
Budburst is the first sign of the annual growth of the vine. The buds swell and open allowing the new green shoots to break through. From flowering to harvest the growth cycle take approximately 100 days.

Question 20

Grape Quality

Answer 20

The quality of the grape crop is determined by a number of factors. These include:
* nutrient and water availability
* the nature and extent of the plant’s root system
* the amount of solar energy available to support the process of photosynthesis.
A series of actions must take place in the vineyard throughout the year. These are important to the development of the vines and are largely influenced by seasons and environmental seasons.

Question 21

Tamburlaine CASE STUDY:
Locational Factors

Answer 21

• Tamburlaine is located 32º47’ South and 151º18’ East, 121 kilometres North of Sydney in the heart of the Hunter Valley of NSW, Australia.
• Established in 1966, Tamburlaine is both a medium-sized vineyard and winery 100 metres above sea level in the Hunter Valley with 13 hectares under-vine, as well as a much larger, 200-hectare site in Orange NSW between 400 and 700 metres of elevation.
• Read - Tamburlaine buys Boomey Vineyard, 21 November 2021 (Links to an external site.)

Question 22

Tamburlaine CASE STUDY:
Biophysical Locational Factors

Answer 22

• The biophysical environment impacts on and contributes to the nature, spatial patterns and future direction of Tamburlaine.
• The winery’s topography involves undulating slopes. It has an incline of 1% and is 110 metres above sea level. It is north-east facing and these characteristics that contribute to the nature and spatial patterns of Tamburlaine wines.
• Tamburlaine experiences a moderate climate with hot summers (average temperature around 23°). It has an approximate annual rainfall of 750mm, and provides the ideal climate for growth and development. Frost can occur in autumn however it is not common and the biggest threat to the winery is wind due to its unpredictable nature.
• Tamburlaine experiences diminishing soil levels which was a driving force behind the enterprise becoming organic, as the type and quality of the soil will greatly affect the taste of the vintage. Mulch and compost are used to top up the soil.
• Tamburlaine soil is composed of red duplex soil, with shallow and clay based soils towards the western edge while it also has some sandy loam soil due to its proximity to the Hunter River.
• Pests and diseases are not that common although they include Downey Mildew, Bunch Roots and Apple Moth. Due to the fact that the winery became organic, agrochemicals cannot be used to prevent pests. Natural spray and fertilisers are used instead to control them.
• The alternate methods in which Tamburlaine controls these problems is through raising trellises and regular pruning, (allowing for sunlight and wind), planting ground cover crops to suppress weeds and also the introduction of natural local predator bugs to naturally fight off unwanted pests. The distribution of sheep to eat pests (grazing) also provides a good source of natural fertilisers.
• These locational factors contribute to the nature of the winery and impact on its future directions.

Question 23

Tamburlaine CASE STUDY:
Rainfall

Answer 23

• Both primary activity locations receive rainfall below the recommended level of precipitation of 700mm/annum (Orange;440mm, Hunter Valley: 540mm). Irregular rainfall in the Hunter Valley also means that exposure to periods of drought is a significant environmental constraint.
• A grape is made of 70% water, therefore access to adequate rainfall is important in the primary stage both in a natural form of precipitation and in a supplementary form of irrigation.
• Tamburlaine has introduced recycled water management and micro drip-irrigation systems to overcome the constraint of lack of water resources, such as the probiotic aeration pond (where wastewater is collected), which filters out toxins and bacteria to create nitrogen rich water fertiliser that helps irrigate the grapes.

Question 24

Tamburlaine CASE STUDY:
Soil Quality

Answer 24

• The quality of the red duplex loam soil at Tamburlaine was noticeably poor, lumpy and hard creating many issues.
• The soil lacks nutrients affecting the development of tannins in the grapes, and the hardness makes it difficult for water to filter.
• To supplement the soil, Tamburlaine incorporates companion planting in every second row, designed to add organic content, increase fertility and water retention.
• To enrich the soil, Tamburlaine have developed organic biologically degrading compost “MARC”, made out of disregarded stems, seeds and vines, which provides the soil with nutrients from natural sources.

Question 25

Pests and Diseases

Answer 25

• Pests (e.g. light brown apple moths, mites) and diseases (e.g. powdery mildew and botrytis cinerea) can be a threat to the vineyard.
• The severity of this environmental constraint can be manifested by the example of Europe where a Phylloxera epidemic destroyed most of the vineyards with disastrous impacts.
• As an organic winery, Tamburlaine has limited potential responses, using biological, natural sprays and introduces predators to remove pests impacting the growth of grapes without harming the natural environment.

Question 26

Weeds

Answer 26

• Managed in organic farming by mulching, moving, mechanical weeding and naturally occurring growth suppressants.
• Tamburlaine doesn’t view weeds as water and nutrient absorbing like non-organic viticulturists. Rather, Tamburlaine believe it replenishes soil humus naturally, insulates soil and reduces evaporation, provides food for microbes and maintains soil aeration through grass root penetration - views them positively as long as they are managed.
• Kangaroos also help keep the weeds down.

Question 27

Ecological Sustainability

Answer 27

• Tamburlaine is Australia’s first carbon-neutral wine producer.
• Certified organic at their vineyard in the Hunter Valley and certified biodynamic at their Orange location, Tamburlaine pride themselves on being the closest you possibly can to carbon neutral.
• As the biggest producer of organic wine in Australia, Tamburlaine are attempting to re-define wine. “Our approach, we term ‘contemporary organics’, is a result of our enthusiasm to re-define winemaking, through experimenting with modern best practice in vineyard management ensuring the lowest environmental pollution, carbon footprint and without accepting pesticide residues. We work to incorporate practical and sustainable strategies that continue to produce brilliant wine - with body and soul,” says Ayla Wilton, a spokesperson for the vineyard.
• According to Tamburlaine, the process of carbon offsetting includes:
  o the use of solar panels on the vineyards
  o composting of food scraps
  o worm farms
  o water recycling
  o wine warehouse insulation with hay rather than electricity

Question 28

Climate

Answer 28

• Global warming (this can be considered the biggest change for viticulture globally): Orange - presently 70% if grape production. However, more land can come under grape cultivation. Why? Cooler climates. HV: could become too warm and too dry. Hence the high percentage of production at Orange.
• Periods of drought: Already introduced an effective water recycling system requiring limited external input.

Question 29

Economic

Answer 29

• TNCs beginning to dominate: This is a threat to Tamburlaine as it is a relatively small business + represents a niche market. Eg. Woolworths is investing in organic wineries ($30 million over five years in interest-free loans and grants) —> due to economies of scale, big businesses can produce the wine at a lower price.
• There are new markets e.g. NICs (Newly Industrialised Country - a country whose economic development is between developing and highly developed classifications) - result - Tamburlaine has a new market - domestic sales may go down but international sales may increase
• Exchange rate - in the upcoming decade, AUD is expected to decline: A decline in exchange rate will increase his exports and actually increase domestic visitors/tourism, increasing his cellar door sales.

Question 30

Global Change - Social

Answer 30

• Growing awareness of health and organic: Beneficial for Tamburlaine
• NICs (Particularly China) - desire for western world consumption
• Empty nester (trend) - enjoy food, wine and tourism: is imperative to the business - cellar door, continue to embrace tourism of the Hunter Valley (the main reason why the HV operations still continue given the Orange facility produces far more grapes)

Question 31

Tamberlaine Summary

Answer 31

The numerous global changes on the viticulture and winemaking industry have provided both positive and negative outcomes for the enterprise of Tamburlaine Organic Wines.
Tamburlaine has responded with highly sustainable and efficient practices and strategies that not only sets an example to the world but also greatly contributes to Australia’s organic wine produce.