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The Role of Contracts in Wine Grape Supply Coordination: An Overview

Iain Fraser ()

Australasian Agribusiness Review, 2003, vol. 11

Abstract: In this paper the role of contracts in coordinating the supply of grapes between independent wine grape growers and wineries is examined. A review of technical issues that underpin the design and implementation of contracts provides insights into the wine industry. A review of the economics literature on contractual relations in the wine industry indicates that although grape contracts are important they are subject to a number of problems. In particular, the precise determination of grape quality is a source of tension, as are current pricing arrangements.

Keywords: contracts; supply; wine grape; growers; wineries; wine industry; grape quality; economics; contractual relations; Agribusiness; Demand and Price Analysis; Farm Management; Financial Economics; Marketing; Production Economics; Resource /Energy Economics and Policy; Teaching/Communication/Extension/Profession; ISSN 1442-6951 (search for similar items in EconPapers)
Date: 2003
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