Microeconometric analysis of wine grape supply contracts in Australia

Iain Fraser

Australian Journal of Agricultural and Resource Economics, 2005, vol. 49, issue 01, 24

Abstract: This paper examines wine grape supply contracts used in the main grape growing regions of Australia. An empirical analysis provides insight into specific aspects of contract design and implementation. Statistical analyses of sample data reveal differences between regions in contract specifications. Lower quality grape growing regions place a greater reliance on grape quality assessment to determine bonus/penalty payments compared to higher quality regions. Contracts in higher quality regions place greater emphasis on explicit winery involvement and direction in vineyard management.Results indicate that longer duration contracts are more inclusive in terms of the number of clauses included. Evidence of risk shifting (i.e., winery to grower) for high quality grapes is reported,where the price received by growers is determined by the bottle price of the wine produced.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
https://ageconsearch.umn.edu/record/118435/files/j.1467-8489.2005.00267.x.pdf (application/pdf)

Related works:
Journal Article: Microeconometric analysis of wine grape supply contracts in Australia (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:118435

DOI: 10.22004/ag.econ.118435

Access Statistics for this article

More articles in Australian Journal of Agricultural and Resource Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().