A Micro-econometric Analysis of Grape Supply Contracts in Australia

Fraser, I. (2005) A Micro-econometric Analysis of Grape Supply Contracts in Australia. Australian Journal of Agricultural and Resource Economics, 49 (1). pp. 23-46. ISSN 1364-985X. (The full text of this publication is not available from this repository)

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Abstract

This paper examines wine grape supply contracts used in the main grape growing regions of Australia. An empirical analysis provides insight into specific aspects of contract design and implementation. Statistical analyses of sample data reveal differences between regions in contract specifications. Lower quality grape growing regions place a greater reliance on grape quality assessment to determine bonus/penalty payments compared to higher quality regions. Contracts in higher quality regions place greater emphasis on explicit winery involvement and direction in vineyard management. Results indicate that longer duration contracts are more inclusive in terms of the number of clauses included. Evidence of risk shifting (i.e., winery to grower) for high quality grapes is reported, where the price received by growers is determined by the bottle price of the wine produced.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > Kent Business School > Agri-Environment Economics
Depositing User: Iain Fraser
Date Deposited: 01 Oct 2008 12:14
Last Modified: 14 Jan 2010 14:20
Resource URI: http://kar.kent.ac.uk/id/eprint/5510 (The current URI for this page, for reference purposes)
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