Explaining low farm-gate prices in the Catalan wine sector

Abstract

Purpose The viticulture sector represents a conspicuous part of the Catalan agricultural and agro food sector. While wine production in Catalonia has been increasing markedly over the first half of the 2000s, prices that grape producers receive have steadily declined threatening their standard of living. This has raised social and political concerns and calls for a better understanding of its causes. This paper aims to comprehend the sources of such price crisis. Design/methodology/approach A Delphi survey is conducted during 2005 among a panel of 27 wine sector experts. Findings The results find that experts agree in considering wine surplus and imperfect price transmission as the main causes determining low farm-gate prices in the Catalan wine sector. Originality/value The analysis aims at characterizing the food marketing chain for wine products in Catalonia by quantifying the trade flows occuring within this chain. This paper is the first attempt in Catalonia and Spain to quantify and characterize such flows.

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