Analysis of production potential and competitive position of Serbia on the international wine market

Abstract

The purpose of this research is analysis and forecasting of the most important trends on the international wine market, as well as identifying opportunities for wine export from Serbia. The aim of the research is to analyse the movement of the wine production and trade on the international market by applying the appropriate methodology. The paper is structured in the following segments: 1) examining the impact of number of vines and yields per vine on the acheved volume of grape production in the Republic of Serbia in the observed period; 2) examining the competitive position of the Republic of Serbia on the international wine market; and 3) analysis of the value and structure of foreign trade of wine between the Republic of Serbia and other countries. Comparative analysis, correlation analysis and regression analysis are used in the paper. The results of this paper indicate: 1) higher impact of yields per vine on the volume of grape production in relation to the impact of the number of vines on the volume of grape production; 2) increasing deficit of foreign trade of wine between Serbia and other world countries; and 3) that Serbia reduced coverage of import of wine by export of wine in the observed period.

The Performance of Grape Production in the Czech Republic

“…Nonetheless, the statistical data shows that the country has been lagged behind the global averages in yield per hectare. The OLS result tallies with the works by Petrović et al (2015) who also confirm a positive connection between yields and grape production in Serbia.…”

“…Grapes are specifically sensitive to climate change because of the intrinsic connection between the climate and its features. The climate change affects the quality of grapes produced (Seguin and de Cortazar, 2005;Berli et al, 2008;Webb et al, 2008;de Orduna, 2010;Vlahović et al, 2012;van Leeuwen and Darriet, 2016), as well as the quantity and yield per hectare (Bindi et al, 1996;Bock et al, 2013;Mozell and Thach, 2014;Petrović et al, 2015;Fraga et al, 2016). Similarly, frost injury and ice damage, diseases, labour cost and availability (Milić et al, 2016;Centinari et al, 2016), technology, consumption patterns (Žufan, 2004), and prices in countries, such as Australia (Zhao et al, 2003;Oczkowski, 2014), Czechia and Slovakia might affect production and market supply (Tomšik et al, 2016).…”

Economic characteristics of grape production in South Banat

“…Favourable climatic conditions and geographical position of Serbia are the main comparative advantage in the production and placement of wine (Petrović et al, 2015). Despite favorable conditions, it is not at a satisfactory development level and lagging behind countries with similar production characteristics.…”

“…Grape production is very widespread in the world, especially in Europe (Petrović et al, 2015). At the world wine market is dominated by three countries, France, Italy and Spain, which together account for half of the total world production (FAO, 2014).…”

“…The increasing preference in the world wine trade is directed to wine qualities (Ivanović et al, 2005). Winemaking is a traditional branch of agriculture in Serbia (Petrović et al, 2015). Also, in the last fifty years, world tourism included an offer related to viticulture and winemaking, which proved to be very successful.…”