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The purpose of this paper is to identify factors resulting from climate change that could impact the cost-effectiveness and development of viticulture in Poland. Climate change is a crucial challenge for the global wine industry. It has the potential to shift the centre of gravity of viticulture from well-developed regions to new ones, including Poland.

Two main methods of data collection were applied: computer assisted telephone interviewing and computer assisted personal interview. A structured questionnaire was drafted, piloted and sent to farms randomly selected to represent wine producers from different wine regions of Poland. The linear probability model was used to determine the factors influencing cost-effectiveness in viticulture production. Data were calculated by using SAS software.

Current and future climate change factors could influence the cost-effectiveness and growth of viticulture in Poland. The exploitation of these opportunities will require the development and implementation of new policies and practices at the farm level, which could also promote innovation in the sector. Furthermore, wine growers according to the increased risk of the unfavourable abiotic and biotic production conditions would be forced to undertake the adaptation strategies to limit the risk of lowering the cost-effectiveness.

This study identifies viticulture and winemaking opportunities for new regions such as Poland. The challenges involved in managing this transition are discussed.

MBA/MS/Executive Training.

Business and society; sustainability; women business leaders.

This case is about the development of sustainable viticulture in Israel. Michal Akerman, a viticulturist and agronomist, implemented out-of-the box ideas at Tabor Winery, Israel, and was successful in developing organic and sustainable vineyard. However, she faced challenges in terms of improving the quality of grapes as she looked forward to growing some of the best quality French grapes in Israel in the challenging conditions of the Negev desert region.

The expected learning outcomes are: to analyze the environmental impact of viticulture and sustainable viticulture through Tabor’s example, to examine how leaders can drive businesses to be involved in sustainable practices and challenges involved in implementing sustainable practices and to develop a framework for female leaders working in male-dominated business environments.

This case captures Michal Akerman’s (Michal) endeavours to develop organic and sustainable viticulture at Israel-based Tabor Winery. The traditional practices followed to grow the vineyards were proving adverse to the biodiversity. Unsustainable practices wiped out rare plants, and micro-organisms, which were essential for cultivation of grapes. The imbalance and unnatural ecosystem ultimately posed a threat to the very sustenance of the vineyards. As a seasoned viticulturist, Michal was of the view that a stable, diverse and balanced ecosystem prevented diseases among plants, and improved the quality of grapes.

Teaching Notes are available for educators only.

CSS 4: Environmental Management.

To address the challenges of the agricultural sector, innovation is necessary. This study aims to focus on knowledge circulation as a basis to facilitate innovation in viticulture in the context of climate change.

We have conducted interviews with viticulture stakeholders in Central Spain (Madrid region) on their perceptions and concerns about climate change, knowledge on practices to mitigate its effects on this crop and their relationship with each other for knowledge exchange. A map showing the knowledge nodes and their relationships with other stakeholders has been drawn based on the answers obtained.

Winegrowers have already noticed the effects of climate change, and they are changing some agricultural practices. Drip irrigation was the most frequently mentioned option to minimize these effects. The map of knowledge identifies the main nodes in the information flow. Results also highlight different approaches to climate change and interesting nuances in the maps of knowledge among winegrowers with and without winery.

This paper is focused on the Madrid region, a territory that is still consolidating its wine sector at the economic and marketing levels. We understand that regions with more consolidated or stronger sectors involve maps of knowledge more complex than that obtained in this study.

Showing the nodes of knowledge, as well as the weaknesses and strengths of the information circuit in the wine sector in the Madrid region, is very relevant to developing strategies aimed at supporting innovation in this sector. From a practical point of view, strategies for knowledge generation and circulation are only one part of the innovation process – policies for financial and technical support are key complementary measures.

Identification of key agents in the innovation process in the wine sector is essential to foster innovation processes. Ultimately, this will lead to more efficient adaptation to new challenges in the sector.

The Agriculture Knowledge and Innovation Systems (AKIS) approach has a consolidated theoretical framework that pays great attention to knowledge flows, but specific studies are needed to capture the reality of AKIS by sector and by region.

The purpose of this paper is to estimate and analyse the technical efficiency (TE) component of productivity for a sample of winegrowers from the Douro Demarcated Region in Portugal.

The data were collected through face-to-face surveys and includes a sample of 110 farmers’ vineyards with specific input-output information and other data about production systems during the year of 2017. The authors use a two-stage data envelopment analysis using bootstrap techniques to obtain TE scores in the farmers’ vineyards and to examine the determinants of its efficiency.

The results show that some farmers’ vineyards have a low efficiency level and that there are essential determinants of the production system, which can influence its efficiency. This suggests considerable opportunities for improvement of wine grape productivity through better use of available resources considering the state of technology.

This work has overcome the lack of data in the farmers’ vineyards, the lack of efficiency studies in the region and also allowed to evaluate the production systems and to assess their impact on efficiency.

The purpose of this article is to attempt to synthesise the lessons from at least four different ways of looking at the South Africa wine industry: economics, climatology, viticulture, and the sociology of work.

The economic performance of South Africa's wine industry since democratisation in the early 1990s is reviewed, as is the effect of climate change on the industry. This is followed by an assessment of possible strategies for building international competitiveness whilst simultaneously coping with the effects of climate change.

While industry systems should allow the marketing of speciality wines (e.g. from a single vineyard, from a single estate), this is not a viable strategy for most wine producers. Furthermore, climate change will lead to volatility in the characteristics that identify different terroirs.

Industry strategies should rather focus on the benefits of diversity, but with a range of adaptations that will also result in better quality wines. These encompass quality; geographic location; viticultural practices; the style of wines and the renewal of skills. In synthesising this argument, the authors then consider whether such a strategy could enhance or hinder greater international competitiveness for the industry.

The results can be taken into consideration by policy makers and industry stakeholders in designing future strategies.

The purpose of this study is to evaluate whether a diversification by grape varieties may help wine producers reduce uncertainty in quantity and quality variations due to increasingly erratic climate conditions.

This study hand-collects granular quantity and quality data from wine harvest reports for vintages 2003 to 2017 for the Valais region in Switzerland. The data allows us to obtain detailed data on harvested kilograms/liters and Oechsle/Brix degrees. It is then merged with precise meteorological data over the same sample period. The authors use this data set to capture weather conditions and their impact on harvested quantities and quality. Finally, they build portfolios including different grape varieties to evaluate whether this reduces variations in quality and quantity over vintages.

The findings highlight that the weather varies relatively strongly over the sample period and that climate hazards such as hail, frost or ensuing vine diseases effectively occur. These strongly impact the harvested quantities but less the quality of the wine. The authors further show that planting different grape varieties allows for a significant reduction in the variation of harvested quantities over time and thus acts as a good solution against climate risk.

The effect of climate change on viticulture is becoming increasingly important and felt and bears real economic and social consequences. This study transposes portfolio diversification which is central to reducing risk in the finance industry, into the wine industry and shows that the same principle holds. The authors thus propose a novel idea on how to mitigate climate risk.

Wine as a research topic continues to address a plethora of diverse contexts. In consideration of this scope and abundance of wine literature, this study aims to provide guidance for future meaningful contributions to this existing body of wine knowledge through a comprehensive scholarly review.

A total of 22 wine business, hospitality and tourism journals were selected and used to identify 739 refereed articles addressing wine-related topics over a 26-year period from 1990 to 2015. This was segmented using five wine research time frames, which were then separately investigated using content analysis and keyword network analysis.

Results support the importance for continued refinement of certain research areas to add understanding to wine research. In particular, the topics of marketing and tourism pertaining to wine research have fragmented into much more specialized sub-segments over this 26-year period.

Limitations include generalizability of findings because of the study’s use of 22 journals, along with the selected 26-year period. Future research should examine other time periods using other publications in peripheral and in non-related areas to seek topics potentially and inadvertently overlooked by this process. Significant topics and trends regarding wine research were identified and classified according to time periods. Information has been provided for future directions and new research agendas.

Based upon an examination of time periods segmented by half-decades, keyword network analysis was used to explore wine research trends. Using keyword network analytics, this method for identifying networks between key words produced findings that have brought the literature regarding wine research to a current status allowing academics to gain insights into potential direction for future research needs.

The purpose of this paper is to model and to value a temperature derivative to hedge late frost risk in viticulture.

Starting from 11 years of historical temperature data collected in Mendoza, Argentina, the authors reconstruct the missing data using principal component analysis. The frequency content of time series is examined by the periodogram method; ordinary least squares are used to estimate the trends of minimum, maximum and average temperatures, and hypothesis tests of univariate and bivariate normality are performed on deseasonalized and filtered temperature returns. The authors express the temperature dynamics by correlated Ornstein‐Uhlenbeck processes and historical data were fitted into the model to obtain parameters estimates. An Asian‐type option on a temperature index is constructed and its price and sensitivities are computed by Monte Carlo method.

The authors define an index in terms of minimum and average temperatures that, under some simplifying hypotheses, quantifies the damage produced by a late frost. To hedge the late frost risk, an Asian‐type option on the index is constructed. Together with the results concerning the design and pricing of the option, the analysis of historical data reveals non‐negligible linear trends, negative in minimum temperature and positive in maximum and average temperatures. These findings may be consistent with the hypothesis of global warming or with the presence of out‐of‐phase very low frequency components.

The authors have not found in the literature a similar option to hedge the risk of spring frosts faced by fruit producers.

The purpose of this paper is to analyse the impact of a World Heritage site (WHS) nomination as perceived by a specific group in a community, namely, the residents of the Alto Douro Wine Region.

The primary data were gathered through a face-to-face questionnaire, and the data analysis was performed using multivariate statistical methodologies (categorical principal components and cluster analysis) and the multinomial logit model.

Since the UNESCO nomination, the economic return was perceived as higher for almost half of the owners within the viticulture activity, for over half (56 per cent) within the tourism activity sector, and for 38 per cent in commerce. The general benefits mainly contributed to the residents’ positive view of the UNESCO’s classification. The viticulture activity negatively influences the perceived impact of listing on economic revenue. This is a very interesting and disturbing conclusion, since it suggests that not all grape-growers are feeling positive effects from the UNESCO nomination.

This paper contributes to the ongoing debate on the WHS perceived effects by local residents. Methodologically, the paper presents a more refined analysis compared to most existing studies. By performing group segmentation, the paper provides more generalised information on community perceptions, bringing forward detailed knowledge about the interests of distinct groups such as wine makers, residents employed in tourism industry and commerce.

The present research expands the debate on environmental sustainability in the wine industry. Since the literature on sustainability and wine is relatively recent, current results do not cover all the practices that can be implemented along the wine supply chain. Thus, the paper presents a classification of environmental practices specific for the wine industry, according to the increased attention that has been paid to this topic in recent years. Moreover, it investigates the adoption level of these practices with reference to Italian wine producers.

The research presents a systematic literature review including papers published in academic journals during the past 30 years and in Italian specialised magazines. This methodology is useful to provide a clear overview of sustainable practices that can be adopted along the wine supply chain. Therefore, an empirical study based on the results of an online survey shows how wineries approach environmental sustainability.

The literature review provides a definition and classification of environmental practices in the wine industry, as well as identification of those that require further attention in the literature, suggesting future research paths. The results of the online survey give an overview of the adoption level of environmental practices and highlight widespread attention to all the listed environmental practices, including those not adopted.

From a theoretical point of view, this paper fills a literature gap in terms of the definition and classification of environmental practices that cover all wine supply chain processes, also providing a useful instrument for wine companies' managers. Moreover, the results of the empirical research give an overview of the adoption level of environmental practices in one of the most relevant countries in terms of wine production and highlight widespread attention to all the listed environmental practices, including those not adopted.