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Vine planting rights, farm size and economic performance: do economies of scale matter in the French viticulture sector?

Author

Listed:
  • Bernard Delord

    (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Etienne Montaigne

    (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Alfredo Manuel Coelho

    (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

This paper assesses the existence of both greater profitability for large-scale farms and economies of scale in the French viticulture sector, thereby confirming or invalidating the argument put forward by the European Commission to justify the abolition of vine planting rights. According to this argument (1) economic efficiency increases with the extension of the vine area in vineyards, and (2) vine planting rights prevent the expansion of farms. This article discusses the issue of economies of scale in agriculture and focuses on specific matters related to viticulture. The key issue of our demonstration lies in the impossibility of defining economies of scale by comparing the profits of farms producing different types of product at different prices. By using an assessment of these variables through FADN, it proposes and justifies the interest of using a measurement of output which is the net value added per unit of labor. The report prepared on behalf of the European Parliament is criticized as it demonstrates a positive correlation between size and efficiency, without taking account of the broad farm gate price dispersion for wine. This article demonstrates that in the case of France, over the period 2005–2007, farm size has little impact on performance. The significant differences observed are the result of differences in the selling price of wine. In summary, the main argument put forward by the European Commission to justify canceling vine planting rights is not adapted to the case of France because it considers wine as a single product sold at a single price.

Suggested Citation

  • Bernard Delord & Etienne Montaigne & Alfredo Manuel Coelho, 2015. "Vine planting rights, farm size and economic performance: do economies of scale matter in the French viticulture sector?," Post-Print hal-01506405, HAL.
  • Handle: RePEc:hal:journl:hal-01506405
    DOI: 10.1016/j.wep.2015.03.001
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    Cited by:

    1. Salvador Linares-Mustar'os & Maria `Angels Farreras-Noguer & N'uria Arimany-Serrat & Germ`a Coenders, 2022. "New financial ratios based on the compositional data methodology," Papers 2210.11138, arXiv.org.
    2. Samson Zadmehran & Etienne Montaigne, 2018. "Typology of the 2007 Herault vine grubbing compaign using a Hierarchical Cluster Analysis [Typologie de l’arrachage viticole héraultais en 2007 par Classification Hiérarchique Ascendante]," Post-Print hal-02736548, HAL.
    3. Jradi, Samah & Bouzdine Chameeva, Tatiana & Aparicio, Juan, 2019. "The measurement of revenue inefficiency over time: An additive perspective," Omega, Elsevier, vol. 83(C), pages 167-180.
    4. Galletto, Luigi, 2018. "The pre-emption right in Italian agriculture: A preliminary evaluation of the direct farmer-neighbouring owner’s case," Land Use Policy, Elsevier, vol. 72(C), pages 46-56.
    5. Iselborn, Maximilian & Müller Loose, Simone & Kühl, Rainer, 2016. "Produktionsstrategische Erfolgsfaktoren Veredelnder Weinbaubetriebe," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244803, German Association of Agricultural Economists (GEWISOLA).
    6. Mann, Stefan & Stefan, Petrica, 2018. "Wine Farms between Specialisation and Diversification – Empirical Insights from Switzerland and Romania," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 67(3), September.
    7. Emmanouil Tziolas & Eleftherios Karapatzak & Ioannis Kalathas & Aikaterini Karampatea & Antonios Grigoropoulos & Aadil Bajoub & Theodore Pachidis & Vassilis G. Kaburlasos, 2023. "Assessing the Economic Performance of Multipurpose Collaborative Robots toward Skillful and Sustainable Viticultural Practices," Sustainability, MDPI, vol. 15(4), pages 1-20, February.

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