Maximizing control strategies in grape and wine industry

Growing wine grapes is, without a doubt, a prestigious activity, but let’s not forget, it’s also a business. Some growers in the industry concentrate on the farming side of things and sell the grapes to wineries while others also venture into the world of grape processing to produce wine or juice and even sell it on site, on local markets, or let’s say, globally.

Different business models mean different approaches. Some vineyards will generate lots of profit, while others will simply struggle to survive. There can be a myriad of factors that play into the success of a given business. Location, branding, capital, and market presence all play very important roles. On the other hand, in some cases, handling control strategies well is the key factor in differentiating a successful business from one that’s losing profit.

An industry of family-owned businesses

According to estimates, around 75% of the world’s agricultural land is in the hands of family farms, and the grape and wine industry shares this particular characteristic. Most of the vineyards you’ve heard of are run by families, and many of them are just simple small farmers. As a matter of fact, the average vineyard area per holding in the European Union was no more than 3.2 acres (or 1.3 ha).

In the US, California takes the lead by a long shot with an average of 82 acres (or 33 ha), with San Joaquin Valley being the absolute best (the average was around 140 acres in 2012). No matter how large the operation, maximizing control strategies can help greatly getting back on track if something unanticipated happens, or when a strategic plan goes into “worst-case scenario mode”.

Running the business in every way possible

The profitability of a vineyard (family-owned or not) will mostly boil down to a few different factors. Arguably, the most important things will be the weather and agricultural product prices, mostly because winegrowers can’t really have any kind of effect on these. However, with appropriate planning, every vineyard can achieve superior results. Even though vineyards are associated with a fairly high investment (especially when comparing them to annual crops) they can still be very profitable.

Disease control

Illnesses like GLRD (Grapevine leafroll disease) threaten the economic sustainability of the industry on a global scale.
GLRD is a viral disease that delays ripening, affects wine quality, and can even reduce yields. Scientists are constantly at the forefront of this fight, trying to figure out strategies to combat diseases and to mitigate their effects. Following the scientific side of winegrowing enables farmers to keep track of the latest trends in phytomedicine and can help them have a better understanding of certain diseases, even enabling them to capture some illnesses in their early stages.

Producing for the market

Truth be told, the lion’s share of the money in all types of farming is made from selling products. When it comes to winegrowing, the money can come either selling the grape or the grape products (wine, juice, spirits). Some experts often advise farmers to produce both for buyers and final consumers alike to “capture value within the value chain.” In their eyes, just producing grapes and selling them just isn’t enough nowadays.

For starters, one control strategy can be devising an advertising orientation. Surely enough, building a proper presence (especially in online marketing) isn’t something that will happen overnight, however, taking advantage of social media and other digital advertising formats and strategies, winemakers can improve sloping sales and can even improve brand recognition at the same time. The problem is, most winemakers have neglected the power of social media and digital marketing, which has left them somewhat behind.

The same idea can be applied to farmers who sell to cellars, companies, or brokers. Getting to know your grape buyer and understanding their needs isn’t really a control plan, but sound advice that can play a crucial role in keeping the business afloat when things go AWOL.

If nothing else, having more buyers to choose from can be a great backup plan, especially if your main buyer simply can’t purchase your yield.

Aim for sustainability

Long-term land use is also a crucial factor in grape growing. As long as the land yields, the profits are guaranteed. As such, creating a sustainable production cycle is paramount to the success of vineyards. Reinvesting some of the profit into fertilizing the soil, conserving natural resources, and focusing on sustainable products isn’t necessarily a control plan, yet again, sound advice that will enable you to stay in business for a long time without having to deal with infertile land.

Embracing innovation and the latest tech

Another strategy that’s less about controlling something that’s out of plan, but something that’s inevitable for future farmers/vineyards. Applying the latest practices and technological advancements can help increase efficiency, lower costs, increase sustainability, help out with business, finances, even marketing. So far, only larger wine companies and commercial farms were the ones embracing modern tech, but nowadays, smaller players are also catching.

As a matter of fact, there are solutions for winegrowers of all capacities and sizes. There are high-tech equipment solutions available for cultivation, harvesting, and processing, often accompanied by software and applications that help farmers keep better track of production, calculating costs, and simplifying several management-related operations.

Learn, Learn, and Learn

Again, not an actual control strategy, but one of the best overarching strategies one can implement. Constant learning and acquiring new information can help you overcome the challenges of an ever-changing market. Learning all there is about the latest tech, industry trends, disease control, product processing, and product sales are all important. Also, learning about risk management, finances, and labor management are almost equally significant because without them, a farm would never reach it’s true potential on the market.

So, to recap, vineyards should focus on:

Crop production knowledge

Learning about the latest technological advancements

Learning about basic farm management (economics, organization)

Product marketing knowledge

Basic informatics knowledge

Implementing Great Long-term Plans

Without a doubt, the best control strategy is thinking about every scenario and calculating them into the overall farming strategy. While this probably won’t happen, having thorough and meticulous farming plans is crucial in successful production, business management, brand development, and so on.

As we said before, diversifying production, proper disease control, sustainable processes, using the latest technologies, proper product placement, marketing, and brand building should all be present in a great plan. Truth be told, you can devise the most thorough plan and still, there will be no guarantee that everything will play out perfectly. However, when you think about everything and create certain strategies and approaches to eventually combat them, it’s easier to take control when issues do appear.

Conclusion

As you can see, there are quite a few approaches you can take to ensure that your business will stay afloat even if things get out of hand a bit. All in all, it’s safe to say that having a well-rounded long-term strategy that focuses on the latest innovations, sustainability, product diversification, and on your buyers/consumers can greatly help you with keeping things at bay.

Remember, the best control strategy is the one you don’t have to use. And if you want to avoid that, your main strategy has to be impeccable, addressing not just a wide palette of different production and cultivation-related operations, but business processes as well, alongside financial moves, and so on.