1887

n Studies in Economics and Econometrics - Determinants of producers' choice of wine grape cultivars in the South African wine industry

Volume 34, Issue 1
  • ISSN : 0379-6205

Abstract

The purpose of this study is to identify the factors that determinethe producers' choice of wine grape cultivars in the wine regions in South Africa. Time series data for the period 1990-2003 were used to estimate the parameters of linear regression models. Two equations for each wine grape cultivar in each region were postulated and estimated using Ordinary Least Squares. The results showed that each wine grape cultivar in each region has its own factors influencing the producers' choice of that specific wine grape cultivar. Same wine grape cultivars in different regions similarly have their own factorsdetermining the producers' choice. The implication of this is that there are differences in terms of the requirements and types of crops and wine grape cultivars grown in each region. The most important result that emerged with regular frequency is that, the factors determining the producers' choice of a specific wine grape cultivar for each region is price of other wine grape cultivars and competitive products in that wine region. The price of specific wine grape cultivars only had aninfluence on few wine grape cultivars. The implication is that the producers in South Africa appears to consider the prices of other wine grape cultivars and competitive products before making a choice of whether to plant or uproot a specific wine grape cultivar more than the price of the specific wine grape cultivar. This supports the theory that farm prices play a key role in allocating resources and in rewarding efficient producers.

Loading full text...

Full text loading...

Loading

Article metrics loading...

/content/bersee/34/1/EJC21494
2010-04-01
2019-11-14

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error