Factors of profitability of the grapes production

Abstract

The paper analyses the relationships between the profitability of viticulture on the one hand and the sugar content and grapes yield in viticulture in the Czech Republic between 1995 and 2014 on the other hand. The paper aims to find out which of these has had a greater impact on the viticulture profitability in the Czech Republic over the last twenty years. One of the frequently debated questions is whether a higher yield of grapes may also bring a high or moderately above average sugar content, and also whether the production for sale is profitable. The answer can be achieved either via the micro-appraisal (repeatable and many times conducted experiments) or via the macro-appraisal - collecting average data for the appraised region. For this paper, the macro-appraisal was chosen, i.e. the statistical survey for the Czech Republic between 1995 and 2014. The period of 20 years comes from an annual examination conducted by the Association of Winemakers of the Czech Republic on the grapes yields in their members. In the Czech Republic, the price in the grapes market is set depending on the variety of vine and sugar content. It follows from the 20-year statistics of the Association of Winemakers CR, that the profitability of grapes production for sale is not achieved by the sugar content but by the per hectare yield. The yield per hectare should vary between 5.5 and 7 t/ha (tonne per hectare) at the average sugar content of 18.5 to 21 oNM (between 11.0 and 12.5% volume of the potential alcohol). The grapes yield of more than 6 t/ha does not increase the profitability because the price offered by the purchasing companies decreases.

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