Viticulture BEESTOP

Question 1

How does Biophysical factors impact the Nature

Answer 1

Impacts quality of primary production
Climate
- prefer Mediterranean climate
- 10-20 degrees
- long and dry summers
- cool moist winters for pruning
- impacts the time for grapes to convert nutrients to sugar influence flavor
Soil
- determine nutrients
- clay soil = more moisture hence better for red grapes

Others
- topography
- local site (disease and pests)

Question 2

How does ecological impact nature

Answer 2

Monoculture - unsustainable practice
- Monoculture crops: Common mineral extracted from soil, leaving it malnourished. Narrowing the gene pool reduces resilience to pest and disease

Excess use of fertilizers and chemical pesticides
- contribute to global warming as it increases carbon dioxide produced
- pollutes run off

Water and energy intensive

Question 3

Stats for how ecological impacts nature - how much land cleared

Answer 3

50000 ha of sustainable soil lost in Australia per year due to agricultural practices

scientifically proven that pesticides and fertilisers increase carbon dioxide production in plants

Question 4

How does economic impact nature

Answer 4

capital intensive
- requires a high investment in land and technology in the NW
- high cost leads other vineyards subleasing/ selling their grapes to be bottled by larger companies e.g. Drayton’s bottles Suncorps grapes

Competitive advantage
OW - high reputation of high quality due to traditional methods = advantage in the demand for exclusive products
NW - highly experimental producing unique wine products (Tickled Pink, Hunter Blue)
- ‘value at every price point’ accommodates greater middle class consumers

Question 5

Stats for how economical impacts nature
cost of land and machines

Answer 5

Cost of land = $50 000/ha
individual machinery costing more than $3 million

Question 6

How does biophysical impact spatial distribution

Answer 6

• biophysical conditions determines spatial distribution to meet these requirements
• climate and soil
• OW - (Italiy, France) Mediterranean climate
• NW (Australia, North America, South Africa) quasi-Mediterranean

Disease and Pest - decrease production of grapes in areas where there is high amount of disease and pests
Disease powdery mildew - high rainfall areas
Phylloxera - native to the US and reach Europe in the 1860s

Question 7

How does ecological impact spatial distribution (OW)

Answer 7

Divide between global ecological management emphasizes OW and NW
OW
- good at organic principles due to traditional methods (hand picking)
- appellation preventing artificial additives
bad at sustainable practices e.g. cover crop since don’t like to change tradition

NW
good at sustainable practice - renewable energy
bad at organic principles through use of pesticides and copper sulphate sprays

Question 8

How does ecological impact spatial distribution (NW)

Answer 8

New world:
Slower to embrace organic principles, using pesticides and copper sulphate sprays to prevent growth of powdery and downy mildew of harsher climate
- 30 organic vineyards in Australia
- 50 000 ha of sustainable soil lost to Aus agricultural practices
- using whey to control the powdery mildew

Question 9

Example of NW sustainable practices (2)

Answer 9

Drayton’s - 300 solar panel farm
Reyneke Wines (South Africa) = biodynamic vineyards which uses wild pea as a cover crop to re0introduce nitrogen into the soil

Question 10

Impact of economic on spatial distribution

Answer 10

Fluctuation of average incomes
- 2008 wine glut steaming from financial global crisis saw over saturation of the OW wine market, decreasing consumption and thus production of wine in these areas
- COVID-19 increase in consumption due to increased leasure time due to lock downs mostly in NW

Opening new markets
- Asian markets (china)
- increase exportation due to increase acceptance of western flavours

Question 11

Impact of biophysical on future directions

Answer 11

Climate Change - impact future harvest cycles
- moved vintage earlier by 1 day as temperatures increase
- decrease yields from weather irregularities
- promote pests and disease (more moist)
- vines experiencing weather irregularities disrupting dormant cycles
- causing earlier vintages, increase rain, drought and decreased yield

Question 12

Example of the impact of biophysical on future directions

Answer 12

• southward shift - shift towards cooler climate in new world to combat climate change e.g. Tasmania
• 250 hectares planted since 2016 vintage
  *2017 vintage report “ 13 000 tonnes from 2016”

Question 13

Impact of ecological on future directions

Answer 13

NW shift to organic viticulture: demand for organic practices increasing as consumer knowledge into grape and wine quality, health and safety and environmental sustainability increase. Recognition of terroir calling for expression of soil naturally.

Organic wines
Push for organic production therefore less sprays
organic wine is based on producing natural, chemical free, biodynamic and sustainably grown wines. Ideally the grapevine happy coexists with other plants, insects birds and animals in a functioning ecosystem – not monoculture

Question 14

Example of how ecological factors impact the future directions of viticulture

Answer 14

Blacksburg Vineyard = South Africa’s first carbon neutral vineyards
Avondale vineyards = duck patrol - natural pesticides which eats snails
Reyneke - bbiodynamic farm - integrating animals and plants to create a dynamic ecosystem - Trend putting cow manure in cow horns and burrying them underground for 6 months to make

Sustainability
- groundcover crops being introduced between vine rows to precent soil erosion, reduce compaction and increase the amount of organic material in the soil
- optimal fertilisation practices that reduce the amount of fertiliser used during the growth cycles of the plant
- leaf removal to allow air circulation and reduce fungal growth
- management of the supply of water to the plants through the use of drip irrigation
- use of biodegradable fungicides and promotion of biological controls
- reduce use of synthetic agrochemicals

Question 15

Impact of economic on future directions

Answer 15

China opening trade
- Due to emergence of an affluent middle class = 75% of their urban population
- 48 million importers
- 0.5L/ year
- importing 340 million in 2022
- Increase targeting China’s industry e.g. Lafite 2008 vintage creating a bottle with the number of 8 = successful with bottle up to $14 000/bottle

Making wine more affordable due to changing demographic = targeting more younger female consumers (tickled pink)

Question 16

Impact of socio-cultural on Nature

Answer 16

Lifestyle beverage: Due to their large tradition and often expensive prices only the high SES could afford it, it is seen as a luxury beverage. It also has a high degree of complementary with food, hospitality, entertainment, the arts and tourism

Tradition: Vineyards have been in Europe for over 200 years. Wine is apart of European culture with the French drinking nearly x2 more than Australians. Wine is also establish as apart of French cuisine.

traditions
mostly family owned
boutiques
lifestyle choice

Question 17

Impact of socio cultural on spatial distribution

Answer 17

Decreased consumption (OW)
Due to generations having changed and driving laws and occupational safety regulations becoming stricter. Older people also have reduced consumption due to health fears and the ability to afford more expensive wine as their income increases.
- From 2021 - 2022 the EU wine consumption has decreased by 2%
- EU accounted for 59% of the worlds consumptions but has decreased to 48%

Increased consumption (NW) –> changing lifestyle and rising Asian middle class e.g. cafe lifestyle

Due to:
- Increased disposable incomes due to ageing population e.g. later marriage, increase DINKs. This increased the demand for luxury goods

USA remains the largest wine consuming country 34mhl with consumption increasing 3% from 2021 -2022
Australian winemakers markets particularly in the premium wine segment is expected to increase 4% per annum between 2020 - 2025

Much of the recent growth has been driven by hospitality-starving populations returning to the on-trade once bars and restaurants re-open. Purchase rates in bars and pubs, in particular, rose sharply last year, mostly driven by younger adult drinkers (Millennials = DINK, SINKs, and Gen Z)

Question 18

Impact of sociocultural on future directions

Answer 18

Increase in MILLENIAL drinkers
18-34 yr males have become an untapped market valued at $76 million
- Treasury wines: Appealing to the “rebellious spirit” with varieties such as Gentlemen’s collection and 19 Crimes branded like whiskey and spirit bottles

Increase young Female drinkers
- Frose + Brose: Frozen wine slushies to attract young drinkers at nightclubs

Changing Consumer Taste
Consumers demand has shifted towards lighter wine. Traditionally there’s the idea that drier wine is good and sweeter wine is bad, however, the US wine market is fueled by the phenomenon called “Moscato Madness”, which has increased Moscato sales by 33%

Question 19

Impact of Technology on nature

Answer 19

Technologically advanced/ sophisticated
- 1 machine harvests 100 tonnes per day = the work of 100 pickers
- Individual machinery cost more than $3 million
Crusher = $60000
- Production line has become increasingly mechanized especially in the NW due to focus on yield and cheaper wine production (hand pickers more expensive)
- Technology is the means by which undesirable biophysical constraints can be manipulated to produce premium wines

Decreases labour intensive

Question 20

Impact of technology on spatial distribution

Answer 20

OW - Limited technological developments as they prefer their traditional methods and their AOC systems prevents such use

NW
Australia is the world leader in R + D of viticultural and winemaking technology used in:
- Transport and storage: sophisticated facilities e.g. stainless steel/ refrigeration
- Bottling: Automated labelling and bottling machines and the invention of Stelvin caps
- Power: Increase air conditioning by using solar panels, natural ventilation and dam based cooling systems to reduce energy intensive heating e.g. DFW 800 panels - 68.5% energy decrease

Question 21

Impact of Technology on future directions

Answer 21

Drones
Hahn Estate Winery in California
- uses drone technology with visual and multispectral sensors to collect data
- monitors the health of its vineyard, collecting info to determine the crops density, and soil temperature and moister
- software processes data to recommend how to adjust viticulture practices to improve harvest such as where and when to harvest and irrigate

Wine in a Can
Kiss of Wine - France, Italy, Spain and Germany
- A premium canned wine brand that sources its wine from small independent winemakers
- The aluminum cans are eco-friendly and can be recycled indefinitely in comparison to glass
- The type of bottle decreases wine waste due to oxidations as serving sizes are reduced and accommodates for younger demographic where drinking in cans is easier during special occasions and large events
- Kiss of Wine also utilizes bright and colorful packaging targeting the quirky and stylish aesthetic which attracts younger demographics

Biotechnology
- cloning of vines for consistent quality and to make the plants more resilient to a range of temperatures and less susceptible to pest and disease
- cloning has been implemented at Simon Tolley Winery in Adelaide Hills
- Canadian scientist have inserted wild broccoli gene into grape to withstand freezing temps

Question 22

Impact of organizational on nature

Answer 22

Fragmented
Historically, the industry has been dominated by small often family owned and operated estate-based enterprises, with the consumer preference of terroir and small based wine. This remains common in Europe today with over 12, 000 producers in Bordeaux France. This has established Appellations which protect the reputation of regions of France, providing competitive advantage.

The global regulatory organization: the OIV (International Organization of Vine and Wine)
The OIV makes recommendations on growing, winemaking and other regulatory matters (links to pesticides or herbicides) that forms the wine related laws in many countries. It organizations:
- provides a forum where the concerns of producers and consumers can be addressed
- Asist other international organization especially those that carry out standardization activities ( making wine sustainable)
- contribute to international standardization of existing practices
- develops new international standards that improve conditions for producing and marketing vine and wine products

Question 23

Impact of organizational on spatial distribution

Answer 23

fragmented in OW
Nature of ownership has changed over the last 20 years due to takeovers and mergers, and globalization that has led to the emergence of large international wine corporations.

Question 24

Impact of organizational on future directions

Answer 24

RETAIL CONSOLIDATION
through Liquorland and Dan Murphy’s, Woolworths and Coles control 77% of domestic wine

Increase in wine TNCs and decrease in family owned businesses
Due to increased globalization and consolidation large businesses are beginning to dominate the growing demand for wine and emerging markets. Especially during COVID many small wine businesses had to sell to larger corporations.

Small Boutiques Wineries
To counterbalance the trend of consolidation is the development of small boutique wineries in the NW. The ongoing existence of small estate-based wineries which ensure that the local character of wine regions is sustained. There is tension between the process of globalization.

Question 25

Give example of wine TNCs and sub brands

Answer 25

Constellation Wines
- Prisoner Wine Company
- Kim Crawford
- Double Diamond

Treasury Wines
- 19 Criminals
- Squealing Pigs

Question 26

Impact of the political on nature

Answer 26

WTO - World Trade Organization
They deal with the riles of trade between nations to ensure that trade runs smoothly. They have eliminated barriers to trade and finance and assisted negotiation of free trade agreement, increasing Australia’s access to markets in USA, China ect

Question 27

Impact of political on spatial distribution Old World

Answer 27

Old World
Locations are governed by rules and regulations set down by the government and is a significant feature of the European wine industry. Only vineyards which comply are allowed to call their product an AOC wine.
Appelations protect and dictate
- kinds of grapes grown in a region,
- way they are planted, pruned and picked
- precise geographical location
- info on labels

EU
The EU is the largest free trade bloc in the world. They control 2/3 of the worldwide production + consumption by fostering economic co-operation internally. The EU also provides subsidies to improve the competitiveness of the wine industry.

Question 28

Impact of political on spatial distribution - New World

Answer 28

AWBC (Australia Wine + brandy Corp) – Identifies geographical locations and responsible for Label Integrity program (LIP) 85% location, vintage, variety

Bilateral Trade Agreements - China and Australia
A trade agreement between 2 countries. Australia has agreements with both US and China, which reduces tariffs, enhancing Australia’s access to these large and emerging wine markets.

Question 29

Impact of political on future directions

Answer 29

REMOVAL OF APPELATIONS:

DECREASE EXPORTS FROM AUSTRALIA TO CHINA AND INCREASE IN UK
Late 2020 China imposed ‘anti-dumping’ tariffs of up to 2018% on Australian wine, killing a market worth a billion dollars a year. Due to diplomatic dispute after Australia called for an inquiry into the origins of COVID-19. This has caused Australian wine to become too expensive for Chinese consumers, causing many Chinese wine importers to look elsewhere for business such as suppliers in Chine and the US.
- In turn the China’s market for Australia decreased 98% from $1.2 billion to $24.2 million from 2020
- Australian wine exports have dropped to their lowest point in 5 years

As the UK left the EU they no longer have free trade hence they may look to import wine from Australia and NW.