Viticulture 2014 HSC Essay PDF

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State Rank: Viticulture Essay (2009 Q)...

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Viticulture 2014 HSC Essay Analyse how an economic enterprise operating at a local scale can be affected by global changes. (2014 HSC) On average, Australians consume 29.6 litres of wine annually, with Australia being the fifth largest wine producer in the world. The global wine industry consists of two activities, viticulture and winemaking, with both activities extremely popular around the world. Viticulture is the growing, cultivation and harvesting of grapes, while winemaking consists of the production of wine through crushing and fermenting grapes. As the world continuously changes around us, the viticulture industry is constantly forced to adapt and adjust according to global changes. In particular, local enterprises, such as Scarborough Wines have both been positively and negatively affected by numerous worldwide changes. Increasing temperatures, changing rainfall and extreme weather caused by

climate

change

have

negatively

affected

Scarborough

Wines,

damaging wine quality. Coal Seam Gas Mining produces chemicals that are leaked into underground water, potentially contaminating grapes and creating health hazards, as well as damaging the natural aesthetics of the region. However, the Global Financal Crisis in 2008, proved to be beneficial to Scarborough wines, boosting sales within the medium sized enterprise.

Nature of Scarborough Wines Wine is as an extremely popular beverage, making viticulture a major retail industry globally, contributing over $40 billion annually to the Australian economy. Viticulture (growing of grapes) is the primary process, whilst winemaking is the secondary industry. Scarborough wines is a family winery since 1987 and is a medium sized local based enterprise, employing approximately 15 full time employees. The winery is located in Pokoblin, Hunter Valley, with a total size of 100 heactares (20 hectares

being vineyards). They produce moderate priced wines ranging from around $25-30, including Chardonnay (70%), Shiraz and Pinot Noir. Scarborough wines is a new-world producer, focusing on competitive advantages, using high mechanised technology to ensure consistent wine quality and efficiency in the manufacturing process. The local enterprise uses contractors, such as experts, labourers and specialised services in particular lines of production to alleviate some pressure of winemaking. The domestic industry produces around 30,000 bottles of wine, sold mostly to Australians, with 200 exported worldwide.

Climate Change (Negative Effect) There are some major impacts of climate change on the functioning of viticulture. Higher average temperatures around the world are likely to affect certain types of wine produced around the world. The additional heat causes earlier ripening within grapes, affecting the wine quality and production schedule of the wine. As a result, Scarborough Wines may not be able to produce current grapes varieties in the long term, and needs to find alternative suitable grapes. Grape varieties such as Pinot Noir and Chardonary will no longer be able to be grown, with species such as Caberinet Saruvigon already being trialled as replacement species. Warmer climates however, reduce the number of diseases and pests as they generally thrive in cooler conditions. Extreme weather caused by climate change can have a disastrous impact on vineyards. The increasingly intensifying and frequently occurring bushfires of NSW can affect the taste of the grapes, giving a smoky and ashy like flavour. Varying and changing rainfall also has detrimental effects to viticulture. Increased rainfall will have an influence on Scarborough’s water balance and have an impact on disease and quality of wines. More rainfall promotes the infections of diseases such as Boytris Rot and powdery mildew, where the rain causes the grape skin to split and rotting occurs. The infected grapes are sorted and removed, adding to the cost of

production and quality of wine produced. The global change of climate change, seen through increasing temperatures, extreme weather and varying rainfall has a detrimental effect to Scarborough Wines. The ongoing current drought in NSW can pose potential issues in Scarborough Wines, as the nature of rainfall is becoming less predictable.

Coal Seam Gas Mining (Negative Effect) Coal seam gas mining undertaken in the Hunter Valley region also has some

potential

detrimental

effect

to

nearby

wineries,

including

Scarborough Wines. There are two main threats associated with mining, Contamination of ground water and aesthetics. Chemical contamination by chemical used and those produced in the mining process, can spread across the water table and often end up in vineyards through irrigation processes. These chemicals have detrimental effects on the vine which in turn affects the grapes and increases the chemical content present in the final wine products. This can cause consumers to get sick from consuming the high levels of chemicals present in the wine, greatly damaging wine sales and trust between consumers and companies. Aesthetics of the Hunter Valley wine region will also be degraded due to the ugly image of the mining wells. Consumers will associate such an image to the possibility of deadly chemicals in wine and will offset from buying those particular wines. As result of the bad reputation winery enterprises such as Scarborough Wines, may see its sales and revenue dramatically decrease leaving business in risk of closure. The damage in aesthetics and also have a negative impact on wine tourism to the region, due to the bad reputation, lowering wine sales and cellar door sales. Coal seam gas mining may negatively influence wineries in the Hunter Valley such as Scarborough Wines.

Global Financial Crisis (Positive Effect)

Surprisingly, the global financial crisis (GFC) in 2008 has a positive economic effect for Scarborough wines. The GFC was a severe worldwide economic crisis, resulted in plummeting of stock markets and lower sales and economic activity. As a result of this, consumers were forced to spend less and conserve money, thus many Australians were unable to purchase luxury goods, such as expensive wines and moved down scale of price. Thus Scarborough wines, a moderate priced wine, benefited immensely, as it enticed more consumers to their cheaper products. The winery obtained higher sales during a time of sever economic downturn and therefore was able to get through the GFC, in good condition. This gave them an economic advantage over other competitors who came out of the GFC badly affected. The GFC in 2008 allowed more sales to cheaper products, economically benefiting Scarborough Wines greatly during an economically difficult time. In future economic fluctuations, Scarborough Wines may benefit similarly to the GFC and withstand well to any economic downturns.

Global changes have both beneficially and negatively affected local viticulture and viniculture enterprises such as Scarborough Wines. Climate change causing rising temperatures, extreme weather and changing rainfall have proven detrimental to viticulture and wine quality. Coal seam gas mining negatively affects local Hunter Valley enterprises, through the contamination of chemicals in ground water and damaging of aesthetics. However, the global financial crisis in 2008, proved favourable to Scarborough wines, boosting sales in a time of economic crisis....