2016
DOI: 10.1002/agr.21468
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Quality Choice and Market Access: Evidence from Chilean Wine Grape Production

Abstract: This paper examines the determinants of becoming a producer of high-quality wine grapes. We explore the case of wine-grape farmers in Chile where we observe a bifurcation of farmer types."Quasi-subsistence" farmers produce traditional wine-grape varieties and complement their subsistence income with cash coming from wine-grape sale. On the other hand, we observe "entrepreneurial" farmers who produce classic varieties that have the potential to produce high-quality wines. We study this bifurcation empirically u… Show more

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Cited by 3 publications
(3 citation statements)
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References 28 publications
(32 reference statements)
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“…Moreover, the farmers are located in all the main valleys where grapes are produced in Chile. Jano (2017) makes an interesting distinction between “quasi‐subsistence” wine‐grape farmers and “entrepreneurial” farmers in Chile. The former are low‐income farmers that complement their subsistence income with earnings from wine‐grape sales and/or rustic wine production, whereas the “entrepreneurial” farmers produce classic varieties that have the potential to produce high‐quality wines.…”
Section: Introductionmentioning
confidence: 99%
“…Moreover, the farmers are located in all the main valleys where grapes are produced in Chile. Jano (2017) makes an interesting distinction between “quasi‐subsistence” wine‐grape farmers and “entrepreneurial” farmers in Chile. The former are low‐income farmers that complement their subsistence income with earnings from wine‐grape sales and/or rustic wine production, whereas the “entrepreneurial” farmers produce classic varieties that have the potential to produce high‐quality wines.…”
Section: Introductionmentioning
confidence: 99%
“…Product differentiation refers to the creation of unique products or services that offer superior quality, functionality, or design. In the grape-growing industry, product differentiation is crucial for remaining competitive in the market [18]. Innovative marketing strategies can help grape-growing enterprises differentiate their products from competitors and increase their market share [19].…”
Section: Product Differentiationmentioning
confidence: 99%
“…Furthermore, the perishable nature of grapes and the volatility in their volumes and qualities condition the evolution of the grape market for each vintage during the months prior to the harvest, as more information is obtained on the likely characteristics of the grape supply for the agricultural year in question. This creates particular conditions for the establishment of inter-annual 1 Some studies on different grape growing areas analysing the use and terms of contracts in grape grower-winery relationships include Fraser (2003Fraser ( , 2005, Fernández-Olmos (2008, 2010b, , Jano (2017) and Wilson et al (2018). And, despite the difficulty in measuring grape quality, several authors find a direct link between the intention to produce quality wines and the increased formality and stringency of contracts (Goodhue et al, 2003;Fraser, 2005;Zylberztajn & Miele, 2005).…”
Section: Introductionmentioning
confidence: 99%