Wine economics

Climate Risk Management in Viticulture Through Grape Variety Diversification

Can winemakers diversify by planting different grape varieties, thereby reducing the qualitative and quantitative uncertainty of their harvest?

Start & End Date

15/06/2022 → 15/12/2022

Main Applicant

Masset, P., EHL Hospitality Business School

Co-applicant(s):

Weisskopf, J.-P., EHL Hospitality Business School

External Funding

HES-SO

Gestion du Risque Climatique dans la Viticulture par la Diversification des Cépages

Project Description

This project studies the effectiveness of grape variety diversification as a risk management strategy. Using a sample of several thousand harvested quantity and quality observations from the Valais region of Switzerland over the past 20 vintages, we document that climatic conditions significantly influence quantitative and qualitative variations between vintages. The diverging and uncorrelated variations among grape varieties suggest a potential diversification effect. We report a considerable reduction in crop risk when a grape variety is added to a portfolio of existing varieties. Diversification thus allows wine producers to manage some of the climate risks they face.