Factors of profitability of the grapes production

Abstract

Th e paper analyses the relationships between the profi tability of viticulture on the one hand and the sugar content and grapes yield in viticulture in the Czech Republic between 1995 and 2014 on the other hand. Th e paper aims to fi nd out which of these has had a greater impact on the viticulture profi tability in the Czech Republic over the last twenty years. One of the frequently debated questions is whether a higher yield of grapes may also bring a high or moderately above average sugar content, and also whether the production for sale is profi table. Th e answer can be achieved either via the micro-appraisal (repeatable and many times conducted experiments) or via the macro-appraisal -collecting average data for the appraised region. For this paper, the macro-appraisal was chosen, i.e. the statistical survey for the Czech Republic between 1995 and 2014. Th e period of 20 years comes from an annual examination conducted by the Association of Winemakers of the Czech Republic on the grapes yields in their members. In the Czech Republic, the price in the grapes market is set depending on the variety of vine and sugar content. It follows from the 20-year statistics of the Association of Winemakers CR, that the profi tability of grapes production for sale is not achieved by the sugar content but by the per hectare yield. Th e yield per hectare should vary between 5.5 and 7 t/ha (tonne per hectare) at the average sugar content of 18.5 to 21 o NM (between 11.0 and 12.5% volume of the potential alcohol). Th e grapes yield of more than 6 t/ha does not increase the profi tability because the price off ered by the purchasing companies decreases.

Impact of firm specific factors on profitability of industrial grinding companies

“…Several empirical studies have attempted to identify firm profitability determinants, focusing on firms in different industry sectors and in different periods (e.g. McDonald, 1999; Adams and Buckle, 2003;Yazdanfar, 2013;Tomsik et al, 2016;Kroupova, 2016). Profitability of the firm is highly influenced by internal and external variables.…”

The Performance of Grape Production in the Czech Republic

“…Soil fertility, climate change and diseases have been identified as among the constraints militating grape yields (Bindi et al, 1996;Bock et al, 2013;Fraga et al, 2016) in countries, such as Czechia (Sedlo and Tomšik, 2012). Sadly, grape farmers hardly receive any compensation when their output falls due to adverse weather conditions and diseases (Tomšik et al, 2016).…”

“…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).…”

Work Productivity in Wine Farms in Selected Countries of the European Union

“…Another key internal factor determining work efficiency in agriculture, in particular in wine farms, is the level of their technical and technological advancement. As studies by Tomsik et al (2016) or Török and Tóth (2013) show, vineyard Proceedings of the 2019 International Scientifi c Conference 'Economic Sciences for Agribusiness and Rural Economy' No 3, Warsaw, 5-7 June 2019, pp. 76-83 farms with a significant degree of technology implementation are characterized by higher work efficiency.…”