Efficiency of wine grape growers at farm level: a case study

Abstract

Abstract.To determine the key variables of the vineyard efficiency is imperative to account the combined effects of the inputs interactions since they have implications on the overall final production. This paper estimates the productive efficiency of a wine-farm sample from the Douro Demarcated Region (DDR) while identifies economic, social and environmental indicators that characterizes the DDR grape production system. The data was collected by face-to-face surveys performed at farm level to build a pilot study. The majority of the sampled twenty farms are dedicated to mountain viticulture and mainly feature the cordon (simple and double) training system. Through the Data Envelopment Analysis (DEA) method, the productive efficiency of the sampled was performed and the results clinched different efficiency scores. The main explanation is related to the heterogeneity of the adopted production system. In addition, they revealed how grape producers could improve their productive efficiency by adopting particular practices and identifying the key factors of their system.

Performance indicators to support firm-level decision-making in the wine industry: a systematic literature review

“…The results documented that the international economic crisis has reduced profitability, changed the balance sheets, but that the reaction of the productive structures favored the recovery of profitability and a different relationship between assets and liabilities. Santos et al (2018b) estimate the productive efficiency of a wine-farm sample from the Douro demarcated region (DDR) and identify economic, social and environmental indicators that characterize the DDR grape production system. However, few papers compare the efficiency of winemaking in several countries.…”

“…Regarding regions, most of the empirical studies were developed in the main wineproducing regions, such as: Bordeaux, France (Jradi et al, 2018); Languedoc-Roussillon, France (Touzard et al, 2016); La Rioja, Spain (Arimany-Serrat et al, 2016); Province of Mendoza, Argentina (Abraham et al, 2014) and Douro, Portugal (Martins et al, 2018; Martins et al, 2017;Santos et al, 2018a;Santos et al, 2018b). Table 4 summarizes the 25 selected studies according to geographical coverage and chosen sample.…”

“…In the first case, the identification of the dimensions/categories becomes visible, as shown for example by Abraham et al (2014), Santiago-Brown et al (2015, Santos et al (2018a) and Santos et al (2018b), who classify the indicators in the economic, social and environmental dimensions. The second case occurs, for example, in Goncharuk (2017Goncharuk ( , 2018Goncharuk ( , 2019, Goncharuk and Figurek (2017) and Goncharuk and Lazareva (2017), in which, although the indicators presented are not classified, the authors analyzed several aspects related to winemaking economic efficiency of wineries.…”

“…Considering the papers mentioned previously in Table 6, where indicators are classified and simultaneously included in frameworks, economic, social and environmental perspectives are clearly predominant. In this context, four studies were identified, namely, Abraham et al (2014), Santiago-Brown et al (2015; Santos et al (2018a);and Santos et al (2018b). Associated with economic classification, Couderc and Marchini (2011) and Emeterio et al (2018) refer to "performance indicators," whereas Dainelli and Daddi (2019), Migliaccio and Tucci (2019), Arimany-Serrat et al (2016) and Arimany-Serrat and Farreras-Noguer (2019) classify these as "financial" indicators.…”

“…Despite these findings, these three countries diminished their production when compared to 2018, with Portugal being the only EU country that reported an increase in its wine production in 2019 of 6.7 mhl (þ10%). Nonetheless, this industry currently lacks core features, which keeps Portugal's overall wine industry adrift from the major worldwide wine producers (Santos et al, 2018a(Santos et al, , 2018b.…”