People and economic Activity Flashcards
what is ecological dimensions
Ecological dimensions refer to the interrelationship between people and the natural elements of the environment and the impacts that placed upon them.
what is the nature of viticulture
- family-owned and operated business
- labour intensive
- capital intensive
- technologically sophisticated
- long term break even
what is the climate of viticulture
temperature
- Mediterranean climate
- temperatures can range from 30c in summer to 7c in midwinter
- long, dry, hot summers for ripening and cool, moist winters for pruning.
- white grapes is 19C and for red varieties 21C
precipitation
- 750mm of rainfall
- level of rainfall shapes the enterprise with the quality of the wine through extreme rainfall dilutes the sugars of the fruit, decreasing the flavour of the vine and the yield of the fruit
Environment Constraints of this economic activity
Pests and Diseases
- , powdery mildew and botrytis bunch rot the most common fungus parasites.
Climate Change
- experienced harvesting season a week and a half earlier triggered from the increase in temperature of soil and warmer summers causing the grapes to mature earlier and ripen more quickly.
two Human Impacts economic activity
Monoculture
- Destruction and the deforestation of habitat in order to establish vineyards, reduces biodiversity and creates a monoculture of wine grapes,
- use of pesticides and fungicides like dithane further reduces biodiversity by killing many species of microorganisms and beneficial bacteria and fungi that supports the surrounding environment with breaking down of nutrients and nutrient cycles.
Resource intensive.
- During vintage, the Drayton family wine uses 4 times more energy due to refrigeration and the machines
- be $250 000 a year with $20000 a month during vintage
- 10.5 litres of water used to produce 1 L of wine
2 sustainable practises
Solar panels and Rain Tanks
- reduced the enterprises energy costs and carbon emissions by 68%.
- the 200-kilowatt solar system with 800 panels
- the 2 dams that are around 80ML to 100ML
- treated, recycled, and then implemented in drip irrigation and then for cleaning.
Recycling Practises
- 20% of 1 kg of grapes is waste in the form of grape skins, seeds, and stems
- recycles this bioproduct through composting and then feeding the products to the cattle, closing the loop. Moreover, the enterprise recycles all glass, cardboard, paper, and plastic.
what are the economic factors that influence viticulture
- capital-intensive and labour-
intensive industry - in most countries the production is consumed within the national market eg Aus consumes 90% of its product while France only 5
what is competitive advantage
- cost of production including investment in capital and returns achieved
- increasing competition between producing nations, combined with the current world glut of wine has impacted on specific nations in relation to their competitive advantages
- increased global competition has resulted in many small scale producers in Aus becoming uncompetitive
sociocultural factors
Tradition has played a significant role i
- Europe for over 2000 year
- . Historically the French have drunk nearly twice the
amount per capita than Australians.
- consumed it at various times
of the day and with most meals. It is drunk by children in small quantities and sometimes
diluted.
nw
- The growth of the cafe society in
places like New York, Sydney, Melbourne and Auckland has made eating
out a popular social experience.
technological factors
TRANSPORTATION - facilitate movement of a global scale
INFORMATION TRANSMISSION
FLOWS
BIOTECHNOLOGY eg genetic engineering to modify the plants
2 technology examples
CANNED WINES
eg riot
DRONES
eg Draytons or Hahn estate in Cali
what are the future directions of viticulture
- wine to Britain
- political tensions between china and Australia
- millenials demand for organic wine
what are organic wines
Organic wines are grown without the use of chemical fertilisers, pesticides or fungicides and has an emphasis on producing eco-friendly wines.
growth of organic wines
Australian organic wine retail sector is valued at 31 million and is growing 54% a year with the global organic consumption almost doubling between 2012 to 2017.
As ecological factors and concerns continuously have an effect in viticulture and winemaking many wineries have begun to focus towards environmental sustainability, with organic wines expected to dramatically increase in the future.
what is the china market
Mainland China e is quickly becoming one of the world’s largest markets for imported wine, with a burgeoning middle class and modernising consumer it presents enormous economic opportunities for exported wine countries. The. Rising Chinese and upper class who are increasing interested wine and culture has resulted in a massive increase of purchases of new world wines.
impact of china and aus trade war
China’s government-imposed tariffs of 116–218% on bottled Australian wine imports through 2026. This effectively shut the doors on what was Australia’s largest export market. In the immediate future, this could mean drastically reduced prices with bulk wines sold cheaply in other export markets.
future direction with emerging markets
. This relationship has lead to Australia needing to find new markets. The greatest growth came from shipments to South-East Asia, up 43 per cent to $255m, followed by Europe, including the UK, which rose by four per cent to $703m.
Organisation factors influencing Viticulture
Old world is fragmented
- Dominated by family owned and operated businesses
concentration of ownership and control
- Globalisation has led to emergence to large international businesses
eg constellation wines - biggest wine business
political factors inclue
Gov are responsible for managing nationals economis
- AUS gov works will World trade organisation
= to secure better access to overseas markets
= put together trade agreements between nations - Brandy Corp x Aus
= to promote and regulate the aus wine
= develop markets
internal Linkages
People: owners and employments (20)
Ideas: Edgar vales (headwine makers), 3 owners, viticulturists, historical
Goods: pruning, ripening, picking, bottled, labelled
Services: educational field trips, advertising, cella-door
external linkages
People: tourism, cella-door, consumer, changing consumer preferences
Ideas: Global technology, Aus x brandy corp
Goods: global economy, trade exports GST, ACI glass in adelaide
Services: cella sales, bottling, storage, toursim (25% from sydney festivals)
impacts of the economic activity
Environmental (Pollution, resource depletion, New technology)
Social (Employment, Cultural Integration,Health Impacts, Social Lubricant)
Economic (Exports and economic growth, Transfer pricing, alcohol taxes, regulation, Provision of infastructure)
what is the environmental impacts of this actviity + case study
POLLUTION
Runoff - wineries containing chemicals = goes into waterways (only 8.4% of france vineyards are organic - deploys 60000 tonnes of pesticides annually - chemicals can contaminate ground water
Pesticies - poison local marines life
CASE STUDY = Hall wines plans to build 209 acres of vines violates California environmental quaility
RESOURCE DEPLETION
- reduction in natural resource avalibility
- land and water
NEW TECHNOLOGY
- Smart phone thermal imaging
what is the social impacts of this actviity
EMPLOYMENT
- Labour exploitation :USA immigrants from Mexico account for 20% of all agriculture workforce - females are most vulnerable
CULTURAL INTEGRATION
- refers to countries around the globe adoptive similar values/attitudes/ purchases decisions
HEALTH IMPACTS
- negative (binge drinking aggressive behviour) 3 million deaths every year result from harmful use of alcohol _ growing drinking culture = less productivty in workers eg commonwealth bank has free beverages and wines after wokr wed - fri
- Positive - decrease risk in heart disease
SOCIAL LUBRICANT (38% less brain function) Beer as pure alcohol dropped from 76% to 42% while wine consumption rose from 12% to 37%.
what is the economic impacts
EXPORTS AND ECONOMIC GROWTH
- mining decrease = new industry
(aus wine = $40 billion annually)
- toursim = $500 million rural to regional aus
- $128.1 billion in US economy
TANSFER PRICING
- large multinational company shifting profits from high tax country to low country taxing
negative
- centralization of market power
- 89% of aus vineyards are dominated by 3 big corporations
ALCOHOL TAXES AND REGULATION
- rate of 29% to the final wholesale price
PROVISION OF INFASTRUCTURE
- physical and organisational structures + facilities needed for the operation of this enterprise
- aus government receives part of the wine export income through company taxes
EMPLOYMENT
global changes in DFW
CLIMATE CHANGE
- Pruning one week earlier from sep 2nd - 1st
- overlap of frosts and spring burst
- increased intensity of droughts has caused hunter prices to drop by 20% over past decade and reduce yield
- draytom will lose 120/320 tonnes of yeild from jan rains
ECOLOGICAL SUSTAINABLE
= drayton adjusted bottle nature to have less glass
= use nitgrogen based fertilisers and less pestcides
= does no use intrusive soil management
CHANGING CONSUMER
= female demographic = tickle pink + quality over quantity (drayton sells $15 Wines 3x more then $10)
= chine markets prefer caps
=
LEGISTATION
= negotiation and trade to reduce tariffs eg AUS + US have 0 tax and 0% tariffs = drayton has greater profit
what are the locational factors of DRAYTONS
Human
- Hunter valley massive tourism hotspot - ideal for viticulture
- celladoor sales are 30% = fanastic market = making 1 million per year with cella door
- historical - land grant in 1853 of 80 arches
Enviroment
- mediterranean climate with mild winters, few frosts, early spring rain
