Social, Environmental and Economic Flashcards
Environmental
The first positive environmental impact of winemaking is the global shift towards sustainable practices. For example, biodynamic certification is offered by US company ‘Demeter’ and operates in over 50 countries. This involves adhering to standards, such as the usage of natural pest controls and the production of fertiliser at the farm itself. Another positive impact is seen in the growth of organic wineries. For example, Tamburlaine Organic Wines is Australia’s largest certified organic winery and as a result of the growing awareness of ecological sustainability, they aim for carbon neutrality and hold organic credentials. Furthermore, grape waste, known as grape marc, has led to an innovative sustainable practise. Composed of skins, seeds and stems, it is used as biofuel and food for livestock.
Conversely, the viticulture industry also has negative impacts, firstly resource depletion. Winemaking has a substantial water footprint, reflected in the 7L of water taken to produce 1L of wine. Additionally, building irrigation dams for vineyards can result in the fragmentation of the river ecosystem, isolating species and constricting fish migratory routes. Moreover, overapplication of irrigation can lead to a rise in the water table, causing salt to protrude to the surface. This saline groundwater enters the plant’s rootzone and renders surrounding land toxic. Finally, land clearing to establish wineries has negative impacts on the environment. Globally, there is 7.5M hectares under vine, and this is increasing. The impacts include loss of native habitat rich in biodiversity and vital nutrients needed for recycling.
Social
Global winemaking has a variety of positive social impacts. Firstly, for many cultures, particularly in the Old World (France, Italy) wine is an integral part of their culture and consuming wine with most meals brings people together in social situations. Additionally, the spread of winemaking and consumption from Old to New World cultures is an example of cultural adaption. New world producers, such as China and the USA have taken traditional winemaking practices and adapted it to their own needs. Consequently, this has resulted in the spread of social customs, leading to cultural integration in the global community. Moreover, innovation in the wine industry has extended its market. For example, the invention of cask wine in Australia made wine more affordable.
Despite these positive impacts, the global viticulture industry proffers harmful social impacts. Firstly, the overindulgence of wine comes at a cost to society. Excessive drinking can have damaging health impacts, including liver disease, brain damage and obesity. Binge drinking habits can impair a person’s judgement, decision-making, reaction time and perception of reality - often leading to alcohol-fuelled violence, drink driving or domestic abuse. In the US, alcohol addiction costs 88, 000 deaths annually, and 2.5 million years of potential life lost. Secondly, the growth of New World wines has been at the expense of Old World winemakers, resulting in the loss of traditional winemaking practices. A shift in the structure of global winemaking has occurred as a consequence of appellation controls, limiting the modernization of Old World practices.
Economic
One positive economic impact of global winemaking is its contribution to job creation. American winery E&J Gallo employees over 6,500 people and in 2019 in Australia, 34,000 were employed in jobs as a result of viticulture. This includes, but is not limited to harvesters, cultivators and oenologists. Another positive impact is the industry’s contribution to economic growth. In 2019, Australia’s wine sector was worth $45.5 billion to the economy and on a global sale, the industry is worth $304bn. Finally, wine tourism, including tasting, consumption and purchase of wine is a positive impact. In 2017, international visits to wineries grew by 3%, such as in The Hunter Valley, where tourists spent $9.2bn.
Despite these positive impacts, the winemaking industry also has negative economic impacts. Firstly, for communities that are highly dependent on viticulture, a poor season may result in local laborers becoming seasonally unemployed. This can be economically crippling for country towns who are reliant on viticulture. Secondly, the growth of transnational corporations has consequently led to the demise of small-medium sized wineries and Old World wineries. TNCs can use establish economies of scale, making them more competitive than smaller winemakers. This is to the detriment of Old World producers, who are restricted by appellation controls. In Australia, the viticulture industry is dominated by Fosters, Orlando Wyndham and BRL Hardy who jointly own 89% of Australian vineyards. Smaller wineries often find it difficult to distribute due to the dominance of liquor companies such as Dan Murphy’s.
