The diversification of grape varietals as a risk management tool in the vineyard

Christen, Romaine (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Masset, Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Weisskopf, Jean-Philippe (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

This article proposes and studies the effectiveness of grape variety diversification as a risk management strategy. Using a sample of 5,679 harvested quantity and quality observations from the Valais region of Switzerland over the vintages 2003 to 2017 we document that quantitative and qualitative variations between vintages are significantly influenced by climatic conditions. The diverging and uncorrelated variations displayed amongst grape varieties suggest a potential diversification effect. We report a considerable reduction in crop risk when a grape variety is added to a portfolio of existing varieties. Diversification thus allows wine producers to manage some of the climate risk they face.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
EHL
Institute:
Aucun institut
Subject(s):
Economie/gestion
Publisher:
Vienna, Austria, 14-18 July 2019
Date:
2019-07
Vienna, Austria
14-18 July 2019
Pagination:
37 p.
Published in:
Proceedings of the 13th Annual American Association of Wine Economists (AAWE) Conference 2019
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2019-11-08, last modified 2019-11-28

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