The paper presents the results of a research on the economic performances of small wine grape growers of Eastern Sicily. Survey was carried out in 2 of the most important Sicilian wine areas: Etna PDO and Cerasuolo di Vittoria PDO, taking into account a representative sample of smallholders, with the aim to evaluate and compare the profitability expressed as farm net value. Our findings highlight the difficulty of small grape growers to face market challenges and also observe that PDO grapes do not allow a sufficient income for small producers. These effects could denote market failure or otherwise weak market efficiency, requiring a stronger support from government policies towards better regulation of market mechanisms, for example through policies oriented towards adequate information. This study points to unfavourable conditions in the future development of small Mediterranean grape producers. Among various hypotheses the persistence of poor economic growth due to low profitability, could give rise to an implosion of the wine sector in Sicily, and probably of many small grape producers in the Mediterranean area, with a decrease in the number of grape producing holdings and their exit from the market.
ECONOMIC PERFORMANCES OF SMALLHOLDERS PDO VITICULTURE IN EASTERN SICILY
D'AMICO, Mario;BRACCO, Salvatore;DI VITA G
2013-01-01
Abstract
The paper presents the results of a research on the economic performances of small wine grape growers of Eastern Sicily. Survey was carried out in 2 of the most important Sicilian wine areas: Etna PDO and Cerasuolo di Vittoria PDO, taking into account a representative sample of smallholders, with the aim to evaluate and compare the profitability expressed as farm net value. Our findings highlight the difficulty of small grape growers to face market challenges and also observe that PDO grapes do not allow a sufficient income for small producers. These effects could denote market failure or otherwise weak market efficiency, requiring a stronger support from government policies towards better regulation of market mechanisms, for example through policies oriented towards adequate information. This study points to unfavourable conditions in the future development of small Mediterranean grape producers. Among various hypotheses the persistence of poor economic growth due to low profitability, could give rise to an implosion of the wine sector in Sicily, and probably of many small grape producers in the Mediterranean area, with a decrease in the number of grape producing holdings and their exit from the market.File | Dimensione | Formato | |
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Di Vita et al., Economic Performances., Quality 2013.pdf
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