Economies of size in wineries and impacts of pricing and product mix decisions

Raymond J. Folwell and Carolina Castaldi
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Raymond J. Folwell: Professor and Agricultural Economist, Department of Agricultural Economics, College of Agriculture and Home Economics, Washington State University, Pullman, Washington, Postal: Professor and Agricultural Economist, Department of Agricultural Economics, College of Agriculture and Home Economics, Washington State University, Pullman, Washington

Agribusiness, 1987, vol. 3, issue 3, 281-292

Abstract: Five wineries ranging in size from 10,000 to 900,000 gallons were analyzed as to investment and operating costs and the impacts of changing product and input prices on their relative financial attractiveness. The larger wineries, while being more costly to establish, offer lower per unit operating costs and greater financial returns. The returns to smaller wineries tend to be more sensitive to wine or product prices than grape and input prices.

Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:3:y:1987:i:3:p:281-292

DOI: 10.1002/1520-6297(198723)3:3<281::AID-AGR2720030304>3.0.CO;2-R

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