Economic sustainability of Canadian grape industry. A comparative analysis of Okanagan valley and Niagara peninsula
Abstract
Sustainability is a broad concept, and its economic component is not often incorporated when sustainable farming practices are studied. This study analyses some economic parameters related to the size of vineyard operation as individual business or associated with a winery. Data has been collected from British Columbia Wine Institute, British Columbia Grape Growers Association, Grapes Growers of Ontario and Statistics Canada. Overall, Ontario has a higher percentage of growers with total acreage over 20 acres, and less vineyards under 20 acres associated with a winery compare to Okanagan Valley. Data suggest that most of the vineyards under 6 acres have also a boutique winery in order to have a sustainable business. Besides terroir and wine quality, the tourism seems to play an important role in the economic sustainability of vineyard/winery operations under 6 acres, located in Okanagan Valley. The total acreage in Ontario is almost double than in British Columbia, but the number of growers is half of this from British Columbia. This study suggests that there is not a minimum acreage to be economically sustainable as long as the operation is located in a touristic area, in the proximity of an urban settlement, with great potential to grow high quality grapes. Also, vineyard/winery entities tend to have better economic results comparing to independent growers.
Issue: GiESCO 2017
Type: Extended abstract
Format: Oral
Authors
1 Okanagan College, School of Business,583 Duncan Ave. Penticton, BC, Canada
2 HortiCARO, St Catharine, ON, Canada
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Keywords
Canadian wine regions, economic sustainability, farm size, tourism