The technical efficiency of wine grape growers in the Murray-Darling Basin in Australia

Coelli, Tim and Sanders, Orion (2013). The technical efficiency of wine grape growers in the Murray-Darling Basin in Australia. In Marie-Claude Pichery and Éric Giraud-Héraud (Ed.), Wine economics: quantitative studies and empirical applications (pp. 231-249) Basingstoke, United Kingdom: Palgrave Macmillan. doi:10.1057/9781137289520.0021

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Author Coelli, Tim
Sanders, Orion
Title of chapter The technical efficiency of wine grape growers in the Murray-Darling Basin in Australia
Title of book Wine economics: quantitative studies and empirical applications
Place of Publication Basingstoke, United Kingdom
Publisher Palgrave Macmillan
Publication Year 2013
Sub-type Research book chapter (original research)
DOI 10.1057/9781137289520.0021
Open Access Status Not yet assessed
Year available 2013
Series Applied Econometrics Association Series
ISBN 9781137289520
Editor Marie-Claude Pichery
Éric Giraud-Héraud
Chapter number 11
Start page 231
End page 249
Total pages 19
Total chapters 16
Language eng
Formatted Abstract/Summary
The wine industry in Australia has grown at an impressive rate during recent decades. From 1982 to 2009 the area under vine grew from 60,000 ha to 163,000 ha, the wine grape harvest grew from 500,000 tonnes to 1.73 million tonnes, and Australia’s volume of wine exports grew exponentially from 8 million litres to 764 million litres, becoming the fourth largest exporter by volume behind the traditional wine-producing giants of Italy, France and Spain (Anderson and Nelgen 2011).

In the early part of the twenty-first century, a number of factors combined which placed pressure on the wine industry. First, competition from emerging New World wine producers such as Chile, Argentina and South Africa, and the continued strength of France, Spain and Italy, began to erode Australia’s international market share (Anderson and Nelgen 2011). Second, vines continued to be planted in Australia. Third, the resources boom in Australia pushed the value of the Australian dollar from US$0.56 in 2003 to US$1 in 2011, effectively almost doubling the landed cost of Australian wine in overseas markets. Fourth, climatic events caused the price of irrigation water to rise substantially during 2006 to 2007 to 2009 to 2010 in many parts of the Murray–Darling Basin (WaterExchange 2012), where more than two-thirds of Australia’s wine grapes are grown on irrigated farms (recently this pressure has eased with the cessation of drought). As a result of these pressures, many small wine grape growers find themselves making regular losses, as grape prices fall and input costs rise (ABARES 2011).
Q-Index Code B1
Q-Index Status Confirmed Code
Institutional Status UQ

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