PEOPLE & ECONOMIC ACTIVITY (Viticulture)

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PEOPLE & ECONOMIC ACTIVITY (Viticulture) by Mind Map: PEOPLE & ECONOMIC ACTIVITY (Viticulture)

1. DESCRIPTION OF...

1.1. SPATIAL PATTERNS:

1.1.1. Major grape growing regions are located between the 30th & 50th degrees of latitude, in both the northern & southern hemispheres.

1.1.2. Mean temperature between 10 & 20 degrees.

1.1.3. Rainfall adequate.

1.1.4. However, grapes have been grown beyond this range of temperature.

1.1.5. Famous grape growing countries; France, Italy, Germany & California.

1.2. THE NATURE:

1.2.1. Two distinct activities of the global wine industry:

1.2.2. -viticulture - cultivation & harvesting of grapes

1.2.3. -winemaking - production of an alcoholic drink via crushing & fermenting

1.2.4. People must be skilled in:

1.2.5. -vineyard design

1.2.6. -species selection

1.2.7. -monitoring & controlling pests and disease

1.2.8. -fertilizer application

1.2.8.1. Viticulturists work closely with winemakers

1.2.9. -irrigation

1.2.10. Grape growing is highly specialized agricultural system.

1.3. FUTURE DIRECTION:

1.4. Moving away from traditional ways of making wine to a new industrial production process

1.5. Changes in spatial patterns of production and consumption:

1.6. -decline in consumption in traditional wines

1.7. -emerging market in Asia

1.8. -increased competition from new winemaking

1.9. Change in consumer tastes, especially among young

1.10. Competition with other alcoholic drinks

1.11. Ecological concerns; minimizing impact on environment

1.12. Potential disruptive impacts of climate change

1.13. Globalization of wine

2. TECHNOLOGICAL: TRANSPORTATION, INFORMATION TRANSMISSION FLOWS, BIOTECHNOLOGIES

2.1. TRANSPORTATION

2.1.1. Sophisticated technologies for global transport. AKA, airplanes, refrigerator trucks.

2.2. INFORMATION TRANSMISSION

2.2.1. Sales, marketing, and the internet. Tech used to monitor financial transactions.

2.2.2. Geospatial tech (GIS). Used in site selection, site monitoring and management.

2.3. WATER STORAGE AND MANAGEMENT

2.3.1. Irrigation tech used to manage plant growth and enhance quality of fruit.

2.4. BIOTECHNOLOGIES

2.4.1. Molecular genetics is essential to genetically engineered fruits. To engineer disease resistant species and develop reliable yeasts.

2.4.2. Cloning to achieve consistent grape quality.

2.4.3. Harvesting and pruning. Merchandised harvests and pruners reduce labour. However higher risk of damage to vines and fruit. This is slowly being modified but it is not a priority as labour costs are low.

2.5. WINE MANUFACTURING

2.5.1. Scientific processes are used to enhance wine quality.

2.6. WINERY DESIGN

2.6.1. Principles of passive solar design and natural ventilation can minimise energy intensive heating.

2.7. BOTTLING

2.7.1. High-capacity automated labeling and packaging machines. Cork to screw top

3. POLITICAL: INTERNATIONAL, NATIONAL

3.1. INTERNATIONAL

3.1.1. Politically, the main global force is the European Union which has a large influence on the global market. They control 60% of the worlds’s production and consumption.

3.1.2. The EU controls farming through its Common Ag Policy (CAP) and it controls supply of wine through quotas.

3.1.3. France controls labelling through its ‘Appellation Controlle’. This enforces geographical labelling and trademarks eg champagne. Also regulates the type of grape, method of picking, no immigration, alcoholic contents etc.

3.1.4. High tariffs on imported wine in some countries of Asia and south America.

3.1.5. European Union winemakers' access to export subsides.

4. SOCIOCULTURAL: TRADITION, CHANGING LIFESTYLE, LABOUR PARTICIPATION RATES

4.1. TRADITION:

4.1.1. Dominated by tradition: old world say they've already created their best wine. New world says they have yet to create theirs.

4.1.2. In France wine making is not a job but a way of life.

4.2. LEVEL & RATE OF ECONOMIC GROWTH:

4.2.1. A majority of the worlds population now has disposable income which they are willing to spend on wine.

4.2.2. There is a rising demand for wine in the UK & USA

4.2.3. Russian & China's growing middle class want to explore what the western world has to offer.

4.2.4. Some old wine countries have decreased in consumption of wine. Mainly the young parts of the population.

4.3. PROCESSES OF CULTURAL CONVERGENCE:

4.3.1. Due to improvement in tech and globalisation.

4.3.2. Globalised industry market to sell branded wines to global market.

4.4. AGE STRUCTURE OF THE POPULATION:

4.4.1. Rates of wine consumption of highest in ages between 35-65

4.4.2. The number of younger wine drinkers is critical to the wine industry.

4.5. CHANGING CONSUMER TASTES AND LIFESTYLE EXPECTATIONS:

4.5.1. Wine is increasingly being adopted as the most appropriate alcoholic drink at home and in restaurants.

4.5.2. The increase of young couples without children going out and eating out has become a social trend.

5. ORGANISATIONAL: OWNERSHIP, DECISION MAKING AND CONTROL

5.1. OWNERSHIP:

5.1.1. The nature of ownership and control in the global wine industry changed substantially over the last decade.

5.1.2. It once dominated by small often family owned and operated, estate-based enterprises.

5.1.3. However, corporate takeovers and mergers, globalisation has led to large, international wine corporations

5.1.4. National players wanted to capitalise on the growing demand for wine.

6. BIOPHYSICAL: CLIMATE, SOILS, TOPOGRAPHY, SITE

6.1. CLIMATE:

6.1.1. Rainfall: Need average rain of 700mm per year. Irrigation substitutes when rainfall lacks. Too much rain can erode soil and promote disease.

6.1.2. Mean temp 10-20 degrees

6.2. SUNLIGHT:

6.2.1. The aspect of the slope on which the grapes are grown is important to the amount and intensity of the sunlight

6.3. SOILS

6.3.1. Well drained, loose soil

6.3.2. Need nitrogen & potassium

6.3.3. Not deficient in nutrients but not overly rich

6.3.4. pH 5-6

6.3.5. Slight acidic

6.4. TOPOGRAPHY

6.4.1. Lower elevations, high altitude

6.4.2. Preferable in "thermal belt" mountain-side zone, where freezing & frost are less likely

6.5. SITE

6.5.1. Aspect is what direction the vineyard is facing, this depends on the water retention of soil and direction of the sun.

7. ECOLOGICAL: SUSTAINABILITY & RESOURCE USE

7.1. SUSTAINABILITY

7.1.1. Encourage various waste minimization & pollution

7.1.2. Organics

7.1.3. Bio-dynamic sprays to build soil structure, increase water holdings capacity

7.1.4. Recycling water

7.1.5. Rain water collection tank

7.1.6. Sustainable production creation

7.1.7. Recycle when possible

7.2. RESOURCE USE

7.2.1. Grape species

7.2.2. Water

7.2.3. Fertile soil

7.2.4. Glass bottles

7.2.5. Metal caps

7.2.6. Oak barrels

7.2.7. Machinary

8. ECONOMIC: COMPETITIVE ADVANTAGE, CONSUMER DEMAND, MOBILITY OF LABOUR AND CAPITAL

8.1. COMPETITIVE ADVANTAGE:

8.1.1. Competition between the old & the new worlds of wine. This gives wine trade a competitive edge.

8.1.2. Prices have been driven down compared to other alcoholic drinks

8.1.3. Brand and marketing

8.2. CONSUMER DEMAND:

8.2.1. Better quality wines at cheaper prices are sought after

8.2.2. Innovative styles and types of wine are popular with consumers. AKA vegan wines and new designs of bottles for different drinking experience.

8.3. CAPITAL:

8.3.1. Positive relationship between economic growth rates and wine consumption

8.3.2. The Global Industry represents over $230 billion in trade

8.3.3. Globally, wine exports are values at approx...US $15 billion

8.4. MOBILITY OF LABOUR:

8.4.1. The availability of skilled workers will increase income margin because it enables producers to make higher quality wines. Europe has a greater varied of skilled workers because wineries have been established a lot longer than the australian industry.

8.5. PHYSICAL FACTORS:

8.5.1. Has been facilitated by lower land costs, a wide choice of climates, terrain and availability to water.

8.6. HUMAN FACTORS:

8.6.1. Skilled viticulturists, winemakers, modern infrastructure and research will provide more of a chance to increase and maintain profit.

8.7. MARKET FACTORS:

8.7.1. Image, reputation and branding. Aka old wine attitude and new wine attitude . relationship between marketing and demonstrating a commitment to networks . Will increase competitive edge.

9. IMPACTS

9.1. ECONOMIC

9.1.1. Industry employs 30,000 people in Australia, including pickers

9.1.2. - Increasing income in Asian countries = wine is luxury = more sales

9.1.3. - Located near employment o Cessnock

9.1.4. - Retail power Big brands

9.1.5. - Branding to appeal younger generations

9.2. SOCIAL

9.2.1. - Moderate drinkers have 30% less risk of type 2 diabetes

9.2.2. - The incidence of binge drinking has grown by 400% 14 -24 age group b/w 1997 to 2010

9.2.3. - Cuts the risk of colon cancer by 45%