Risk management in wine industry: A review of the literature

Abstract

Abstract. Wine industry is characterized by high added value, particularly for some segments. The quality of the final product is the result of the right combination of many variables which involve the choice of the suitable wine grape varieties to particular conditions of site location, soil, climate, landscape together with entrepreneurial right decisions in management. The globalization of the market with the increasing of competition among producers and the evidences of climate change, that has different effects on the vitivinicultural areas in the world, have led to the growth of frequency and intensity of risks that winegrowers have to cope with. Their behaviour and reactions in managing risky situations of different nature, often adopting instruments they are not familiar with, as insurance or derivatives, could result in relevant consequences on prices, costs of production, revenues and profits, in other words, on the value chain of the wine production. This paper aims to provide a general overview of the economic literature on risk management in the wine industry.

Potential use of weather derivatives in hedging aggregate viticulture yields: An analysis of the Niagara region of Canada

“…To manage the weather risks in Ontario, three options are typically considered: traditional viticulture practices, new technological developments, and crop insurance. Traditional viticulture practices such as suckering, modified training systems, and canopy management strategies are commonly used but are labor intensive and ineffective in extreme weather events (Seccia, Santeramo, and Nardone, 2016). Recent technological developments involve better weather prediction systems and innovations such as advanced irrigation systems and the use of wind machines to mitigate the impact of frost or extreme cold temperatures in the winter.…”

Italian winegrowers’ and wine makers’ attitudes toward climate hazards and their strategy of adaptation to the change

“…In general, the idea that specific grapevine varieties will be permanently linked to their original areas might be subject to a revision in the future, and model simulations involving the future development of grapevine growing witness the interest in such prognostic exercises (Jones, 2006;Mal-heiro et al, 2010;Moriondo et al, 2011;Hannah et al, 2013;Eccel et al, 2016;Alikadić et al, 2019). In the wine sector, the existence of a climate-driven risk is particularly evident (Seccia et al, 2016), with an expectation of a further change in the configuration of the Italian grapevine cultivation areas. The Mediterranean region is in fact a climate "hot spot", with temperature increase higher than in other geographic regions (Fraga et al, 2013b;Cos et al, 2022).…”

Ensuring technological sovereignty in the Russian wine industry and corruption risks

“…The problems of technologies in viticulture and winemaking are quite popular among modern foreign researchers [2,3,4]. In connection with the trend of ensuring independence and sovereignty [6,7] and with the entry into force of Federal Law No.…”