Tamburlane - notes on tamburlaine PDF

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Tamburlaine Organic Wines Question

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The nature of the economic enterprise

Tamburlaine (32oS, 151oE) is Australia's largest certified organic winery established in 1966, owned and operated by Mark Davidson (15 shareholders). The nature of the viticulture, winemaking and selling have been influenced by the ecological philosophy that "we did not inherit the earth from our forefathers, we are borrowing it from our descendants". The primary agricultural activity of grape cultivation is located in both the warmer wine region of Pokolbin, Hunter Valley and the cooler wine region of Orange representing two distinct terroirs to maximise production. Tamburlaine represents a globally profitable enterprise, and has embraced the simultaneous growth of tourism, attracting people on an international scale. Tamburlaine is a highly specialised, capitalintensive industry, utilising technology at each stage of the production process to reduce their carbon footprint + to improve overall performance + efficiency - Tamburlaine is a dynamic bus which owns and operates 2 vineyards in 2 different regions = Pokolbin in the HV (33S, 151E) and Borenore in West Orange (22S, 149E) - Both locations represent organic vineyards + offer distinct terroir + therefore, varietal diversity - BEEPOTS Polkolbin Hunter Valley: - vineyard + winery - 13 hectares, 1hr 30 min from North Sydney - environment = warm grape growing climate, average annual rainfall of 530mm (supplemented by the Pokolbin irrigation), general cloud cover, undulating land, 100mm above seal level) - environmental conditions support an adequate terroir = limitations to the HV and hence the decision for Mark Davison to operate two distinct sites - expected to be threatened by increased risk of summer storms, higher humidity, increased heat stress + a variable temp range can increase disease + pest outbreaks - HV advantages = reliable high-quality water from river - grape varieties = Semillion, Chardonnay, Shiraz

Locational factors

Locational factors: BIOPHYSICAL

Borenore (vineyard) - 100 hectares, 250km W of S - distinctive/different terroir

Locational factors: ECOLOGICAL

Locational factors: ECONOMIC

Locational factors: SOCIAL

Locational factors: TECHNOLOGICAL

- grape varieties - Merlot, Riesling and Sauvignon Blanc - Environment- cool grape growing climate (mean Jan temp of 19.5), 440mm of rainfall during growing season, cool nights and warm days - ideal for certain grapes, 800-900 m above sea level - located on slopes of extinct volcanoes - fertile Basalt soil - the biophysical conditions of Orange are considered part of one of the new most exciting regions of Australian viticulture - Mark Davidson's decision to establish his organic winery in both the hunter valley and orange was also influenced but he support from neighbouring vineyards and others also invested in organic farming - his restrictive practices were well respected by neighbours not only creating buffer zones but also allowing Mark Davidson to mama their edging properties - Hunter gallery produces only 2% of Australian wine - The proximity to suppliers, domestic markets and export ports attracts international wine making expertise and creates marketing opportunities - Hunter valley is ranked the 10th most popular Australian location for international tourism and 13th for domestic tourism - Located only 2-3 hours from Sydney, the Hunter has over 120 wineries, 65 restaurants and three major gold courses - creates critical and integrated industry cluster - Mark Davidson to have such a successful economic enterprise depends upon the mass of critical industries and integrated clusters of vineyards and integrates clusters of vineyards and related developments - Hunter Valley consists of an agglomeration of wineries, vineyards and tourism services, a concentration of activity results in agglomeration of economies - may be cost savings and other benefits as suppliers are specialized/set up for this participate type of production. - Hunter wine producers have also developed a strong domestic and export focused marketing program that include cellar door outlets, regional events and international branding - Tourism Hunter (HVWIA 2010) estimates that in 2010 the wine tourism sector provided: a) More than 2.8 million visitors to this iconic loyalty who spent over $1 billion, and b) Hunter vineyard and tourism industries jointly inject $1.8 billion annually into the NSW economy and are well placed to continue this trend c) Wine makers in the Hunter Region produce more than 25 million litres of wine per annum valued at $210 million, including cellar door sales which are worth over AA$75 million - Mark Davidson's focus on customer service requires his winery to be located in an area that celebrates tourism, food and wine. - The success of viticulture and wine making relies significantly on infrastructure and technology. For example; road networks,

Locational factors: ORGANISATIONAL

Locational factors: POLITICAL

Environmental constraints

roads and electricity - Critical infrastructure: a) Road access to vineyard areas for wine tourism and the transport of grapes (especially important as he has two vineyards) juice and wine b) A reliable electricity supply to irrigate vines and the operation of wine making and storage facilities and cellar door outlets c) The site selection of Orange has also been influenced by the nature of transport which can presently move the grape to the winery overnight with little impact upon the grape quality - To ensure the sustainability and growth of other Hunter Wine growing areas, the viticulture industry invested significantly to create the privately-owned Pokolbin Private Irrigation District - There are a variety of organizational structures such as the Hunter Valley Wine Growers Association, the NSW Tourism Association that operate on a local and national scale that support the location of Tamburlaine in the Hunter Valley. For example: a) The privately-owned Pokolbin Private Irrigation District provides the infrastructure and regulation that allows members to purchase high security water from the hunter river, which is regulated water supply - The Hunter Valley Wine Industry Association (HVWIA) reports that in 2010 that the total value of investment expenditure directly associated with the grape and wine production exceeded $450 million, and - Viticulture and wine-making industries directly employ over 7,000 people with 10,0000 indirectly employed (e.g. in-service industries and via multiplier effects), this excludes wine tourism employment - Tamburlaine's location is support by government zoning and also the support of the local government - State and local (Cessnock city council) governments promote Hunter Valley as a destination for both tourism and wine making - Future decisions such as zoning and allowing open cut coal mines in the Hunter area may ultimately affect the location environmental factors will reduce quality and production RAINFALL: Both primary activity locations receive rainfall below the recommended level of precipitation of 700mm/annum (Orange;440mm, Hunter Valley: 540mm). Irregular rainfall in the Hunter Valley also means that exposure to periods of drought is a significant environmental constraint. A grape is made of 70% water, therefore access to adequate rainfall is important in the primary stage both in a natural form of precipitation and in a supplementary form of irrigation. Tamburlaine has introduced recycled water management and micro drip-irrigation systems to overcome the constraint of lack of water resources, such as the probiotic aeration pond (where waste water is collected), which filters out toxins and bacteria

to create nitrogen rich water fertiliser that helps irrigate the grapes. SOIL QUALITY: The quality of the red duplex loam soil at Tamburlaine was noticeably poor, lumpy and hard creating many issues. The soil lacks nutrients affecting the development of tannins in the grapes, and the hardness makes it difficult for water to filter. To supplement the soil, Tamburlaine incorporates companion planting in every second row, designed to add organic content, increase fertility and water retention. To enrich the soil, Tamburlaine have developed organic biologically degrading compost "MARC", made out of disregarded stems, seeds and vines, which provides the soil with nutrients from natural sources. PEST + DISEASE: Pests (e.g. light brown apple moths, mites) and diseases (e.g. powdery mildew and botrytis cinera) can be a threat to the vineyard. The severity of this environmental constraint can be manifested by the example of Europe where a Phylloxera epidemic destroyed most of the vineyards with disastrous impacts. As an organic winery, Tamburlaine has limited potential responses, using biological, natural sprays and introduces predators to remove pests impacting the growth of grapes without harming the natural environment.

Human impacts = ecological sustainability of the enterprise

WEEDS: Managed in organic farming by mulching, moving, mechanical weeding and naturally occurring growth suppressants. Doesn't view weeds as water and nutrient absorbing like non-organic viticulturists. Rather, Tamburlaine believe it replenishes soil humus naturally, insulates soil and reduces evaporation, provides food for microbes and maintains soil aeration through grass root penetration - views them positively as long as they are managed. Kangaroo - keeps weeds down. Tamburlaine actively implements sustainable mechanisms in an attempt to reduce their environmental impact and achieve ecological sustainable development. Between 2011 and 2016 Tamburlaine invested in major efficiency upgrade projects such as energy efficient lighting. This has been effective as Tamburlaine has successfully achieved a 0-carbon footprint and saved over 110,000/annum in electricity costs, representing their cost-efficiency and sustainability of their energy-reduction strategy. Tamburlaine has invested in renewable energy such as solar panels, biofuel vehicles, as well as drip irrigation and filtration schemes to monitor water usage. This has been successful as they are able to meet the current needs without risk of resource depletion (e.g. drought) in the future. Tamburlaine have allocated resources towards the development of innovative waste management techniques in an attempt to reduce waste, and recycle where possible. His creation of the natural compost "Marc", has successfully

Internal Linkages

External Linkages

minimised natural wastage as grape stalks, seeds and skins are recycled and reused to provide a nutrient enriched humus for the soil. As well as this, waste water management strategies are very efficient with the aeration pond and recycling water used to clear toxins and filter water to irrigate the grapes. Tamburlaine also recycles other cardboard, glass, waste and minimises paper use in the business wherever possible. Therefore, Tamburlaine have successfully implemented effective strategies, seen through the reduction of natural, synthetic and chemical waste produced, and their improved outlook towards recycling to minimise consumption. Instead of using harmful pesticides and chemicals, Tamburlaine have developed biological and natural sprays, to fulfil production needs without rendering the area useful for agricultural needs. Non-synthetic fertilisers and practises reduces toxicity and runoff, improving the environment and allowing for biodiversity. Internal flows and linkages of goods and people allow the Tamburlaine to be a highly successfully economic enterprise. In the relation to goods, the quality of grape is an important indicator for the success of Tamburlaine, as the production of the grape is imperative to make a quality wine. Therefore, sustained quality within harvesting, manufacturing and selling is essential for the business to achieve a good quality wine. Tamburlaine's reputable standard (both domestically and internationally), indicates the success of his goods, as Tamburlaine is well known for quality wines. The success and reputation of Tamburlaine does not just depend on the quality of wine it produces, it is also impacted by the internal flows and linkages of people. An important asset of Tamburlaine are the 53 full time employees who are highly knowledgeable, skilled and experienced in the industry, and therefore contribute to the success of the business. An integral part of Tamburlaine's maintained position as the leading organic winery in Australia, is the fact all employee's share a passion of organics, and are actively exchanging knowledge to succeed. Since Tamburlaine represents a split enterprise, in which production is completed in both the Hunter Valley and Orange, it is important for the managers and employees at each site to effectively communicate. There must be a shared vision and understanding to ensure both locations achieve their shared goals and succeed to a high ecological standard. People: - MEMBERS: 22,000 wine members value their organic philosophy and are major purchasers of Tamburlaine's products. - CUSTOMERS: customers at the cellar door, and who become Tamburlaine club members to a degree are part of the internal company = 80% of domestic sales Goods:

- GREEN WASTE: the Cessnock council will provide Tamburlaine with additional green waste for the making of humus. - WINE: the wine, made in Pokolbin, is transported first, via Towers Transport Co, to the Hunter Valley Bottling Company, based in Pokolbin. There the wine is bottled, ready for sale. - BOTTLED WINE: Tamburlaine supplies to local restaurants such as Cypress Lakes, and the Cellar restaurant in Pokolbin. Regional - 43% of sales occur through the cellar door to Tamburlaine's primarily regional Sydney-based customers. International - Tamburlaine has an expanding export market, exporting globally to Canada, Sweden, Denmark, China, Japan and Nepal. - TECHNOLOGY + MATERIALS: Tamburlaine purchases new capital intensive technology from overseas countries such as France (Floxal machine to make Nitrogen). Recently, Tamburlaine has imported 200 litre Polymer Tanks from New Zealand to replace the reliance on oak barrels which are imported from Adelaide Coopers as well as France and USA. Harvesting machine. Irrigation supplied by the polkobin irrggiation district (to use if water runs out). Equipment: Hungarian and American oak bottles,n flexicube new tech. 2000L container Services: LINKS WITH BUSINESS SERVICES: Tamburlaine relies on key services for the production and distribution of its wines. All of Tamburlaine's wines are bottled at the Hunter Bottling Company, which is based in Pokolbin. Tamburlaine also relies on local transport companies, e.g. Towers Transport to transport the wines from the winery to the bottling company. Tamburlaine also relies on national business services such as Australia Post, DHL, TNT to ship cases of wines out to all of the members. It also uses the local catering company 'Caterinas' to cater for its wedding functions. Tamburlaine also uses 'Wine Design' from The Hunter Valley to produce the images for its labels. - Australia post, transport towers - Tourism - Belongs to organic farmers associations nad shares ideas - Advertising - Wine exhibitions: manly food festival - Destination NSW - Ceccnock liquor accord - HV tourism association - WTO LINKS WITH FED GOV: - Tamburlaine received Government funding for its water recycling scheme (its Anaerobic Digester) and also received an enormous subsidy for the implementation of energy reduction strategies. Tamburlaine has saved in excess of 248.5 MWh per

year, an approx. saving of $160,000 per year (in total 1 million since the 1980s), a saving of 53.4%. - As a certified organic farm, Tamburlaine must follow the standards and certifications set by the National Standard for Organic and Biodynamic Produce. This includes the amount of sulphur dioxide allowed in organic wines (250ml). - Wine Australia - Who are responsible for national matters such as export and labelling regulations, the determination of geographical indications, the collection, development, assembly and dissemination of information relevant to the Australian wine industry. Tamburlaine also must adhere to the requirements of the Biological Farmers Association - http://www.bfa.com.au/. The BFA promote the requirements for 'certified organic' as set out in the Australian Organic Standard, which Tamburlaine must follow. The BFA also offer advisory groups on organic matters, which Tamburlaine is able to take advantage of. - As a business enterprise, Tamburlaine must meet the requirements set by the Australian Taxation Office. - Tamburlaine must work with AusTrade (http://www.austrade.gov.au/) to manage their exports & imports. - Tamburlaine also benefits from Government capital works such as The Hunter Expressway - External political regulatory bodies: wine Australia, Australian certified organic organisation (ACOO) - involved in primary and secondary because everything he must do is organic. Teriatry and quartneray is the Australian securities and taxation office. Department of primary industry. Quarternary; destination NSW. Tertiary: the office of liquor and gaming. Receives gov. grants LINKS WITH STATE GOVERNMENT - At a state Level, Tamburlaine has strong links with Tourism NSW, who promote tourism in the area. - The NSW Office of Gaming and Liquor. TOURISM AGENCIES Tamburlaine has links with a number of tourism bodies that promote the Hunter Valley. Tamburlaine is listed on the following websites: www.visitnsw.com.au; www.visithunter.com.au; & www.huntervalleyeguide. These links are incredibly important to publicise and promote Tamburlaine and allow visitors to the area to search for and find out about Tamburlaine so that they can visit. LOCAL INFRASTRUCTURE TO SUPPORT TOURISM Tamburlaine benefits closely from the concentrated supply of services and tourism infrastructure within the Hunter Valley, such as, the multiple layers of accommodation (180 sites of accommodation), the venues for concerts (e.g. Hope Estate)

and the Wine Tour operators (e.g. Hunter Valley Coach)

GLOBAL CHANGE = BIOPHYSICAL

GLOBAL CHANGE = ECONOMIC

GLOBAL CHANGE = ECOLOGICAL GLOBAL CHANGE = SOCIAL

GLOBAL CHANGE = TECHNOLOGICAL

GLOBAL CHANGE = ORGANISATIONAL

Ideas SHARING OF ORGANIC PHILOSOPHY WITH MEMBERS: Tamburlaine regularly communicates with its members through newsletters and via its homepage, sharing and spreading its organic philosophy and news about the company. They have gone from organic to vegan as of 2017. They share a passion for organic. - Global warming (this can be considered the biggest change for viticulture globally): Orange - presently 70% if grape production. However, more land can come under grape cultivation. Why? Cooler climates. HV: could become too warm and too dry. Hence the high percentage of production at Orange - Periods of drought: Already introduced an effective water recycling system requiring limited external input. - TNCs beginning to dominate: This is a threat to M.D as he is a small business + represents a niche market. E/g/ Woolworths is investing in organic wineries —> due to economies of scale, big businesses can produce the wine at a lower price - There are new markets e.g. NICs: Tamburlaine has a new market - domestic sales may go down but international sales may increase - Exchange rate - in the upcoming decade, AUD is expected to decline: A decline in exchange rate will increase his exports and actually increase domestic visitors/tourism, increasing his cellar doors sale - Ecological sustainable development - more awareness by developed countries: Beneficial for MD - he can become a leader in the sharing of knowledge and ideas. In this 'niche market' he could develop a great profile. - Growing awareness of health and organic: Beneficial for Tamburlaine - NICs (Particularly China) - desire for western world consumption: M.D. - Built very strong ties with Japan + China: opened wine, employed to teach about viticulture - Empty nester (...