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March 26, 1998 Abstract
Grapes and grape products account for 13% of global fruit and
nut output and one-quarter of its exports. The sector has experienced
a sharp drop in planted area and significant shifts in consumer
preferences. The major forces affecting results have been the
globalization of production and marketing, the swift progress
made in pest and disease control, the strong pressures for reduced
chemical use and more environmentally friendly practices, and
the increased importance of ìnon-traditionalî producers.
Research is needed to help the sector adjust to these forces.
Research needs in viticulture center on clonal selection, genetics
and breeding, ecology, physiology, cultural practices (including
pruning) and mechanization. The needs in enology center on the
impact of viticultural practices on wine quality, the reduction
of ethyl carbamate levels in wine, wine making processes such
as the extraction of color and flavor in red wine making, and
the genetic engineering of yeasts. The priority research objectives
in economics arring of yeasts. The priority research objectives
in economics are to improve the coverage and quality of information
systems, to identify and evaluate emerging market opportunities,
to evaluate alternative production strategies including new systems
of pest control, to assess changes in consumer behavior, and to
evaluate alternative competitive strategies and public policies
affecting the sector. 1. Introduction
Grapes are one of the worldís most important horticultural
products and consequently are of major interest commercially,
politically and socially. When they are affected by shifting consumer
preferences, new social concerns, changed government regulations,
or technological innovation, large numbers of people, communities,
and businesses are also affected. Those affected have a large
stake in adapting to or managing change. This calls for researchóon
a large scale and on a global basis. The purpose of this report
is to describe the changes affecting grapes and grape products
and to outline the research that is needed to maintain the economic
and social viability of this important horticultural sector. The
report is presented as a case study that may be applicable to
other horticultural sectors. 2. The Current Situation of the Grape Sector
Grapes accounted for 13% of global fruit, melon and nut output
in the 1995ñ97 period. Grape and grape product ext
in the 1995ñ97 period. Grape and grape product exports
accounted for almost one-quarter of all horticultural exports
and about one fifth of global grape production, making grape growing
sensitive to world conditions.
Vineyard area in 1996 was approximately 7.6 million hectares,
one quarter below the level of 1976/80. The decline was stimulated
mostly by a steep drop in wine consumption. Production did not
fall in proportion to the decline in planted area because cultural
improvements and changed varietal patterns increased vineyard
productivity. In aggregate terms, grape production per hectare
expanded from 6.1 tons to 7.7 tons, a gain of over one quarter
in productivity.
The primary uses for grapes are fresh market, dried and crush
products. Wine, brandy, concentrate and juice require approximately
36 million tons of grapes, or about 65% of recent average productions
levels. Fresh markets used about 17 million tons and raisin markets
about 4,500 tons, fresh basis, annually during 1991ñ95.
The proportion of production allocated to fresh market increased
as demand grew and wine markets dropped. Export demand expanded
making fresh markets far more dependent on trade and sensitive
to global trends. Raisin production, on the other hand, remained
relatively stable, although it lagged behind world population
growth. The raisin industry has always been more dependent on
trade than have fresh market grapes or wine. Win
trade than have fresh market grapes or wine. Wine production dropped
24% between 1981ñ85 and 1993ñ95, but still did not
eliminate the structural surplus of table wines that has plagued
the wine sector for years. The great anomaly of the wine sector
is that quality wine consumption has been growing rapidly, but
not fast enough to offset the volume declines in ordinary wines.
3. The Major Forces Affecting the Viticultural and Wine Sector
The global increase in the production and consumption of grapes
for the fresh market and for quality wines has motivated large
increases in vineyard conversions and plantings. However, the
changes in planted areas and the conversion of vineyards are not
sufficiently documented to allow an estimation of future supply.
Part of the problem arises because plantings are not reported
according to quality of grape, partly because definitions used
in different countries are believed not to be compatible, and
partly because the changes are not being captured in existing
information systems. Inadequate information for private and public
decisions adds costs to the system and should motivate the development
of alternative information systems.
Increased trade and the rapid dissemination of information have
created a new competitive environment which demands changed ìrules
for the game.î This includes, for example, finding common
productionc; This includes, for example, finding common
production or distribution systems, or common methods for analysis.
Concurrently, the lowering of tariffs and the reduction of quotas
under the World Trade Organization has shifted trade barriers
more in the direction of sanitary and phyto-sanitary regulations.
These barriers can be challenged on the basis of scientific evidence,
however the process is cumbersome. As the flow of trade has increased,
control agencies have had more need to identify the components
of wine and other products that are presented for sale. Do they
contain the required level of the variety claimed? Are there proscribed
additives in wine? Was the wine produced where it is claimed?
Answering some of these questions may become easier if new measuring
techniques prove effective. Research has been focusing on the
need for effective analytical techniques, for example, the DNA
ìfingerprintingî of wine varieties.
Environmental considerations are increasingly important in dictating
practices in the horticultural sector. This has coincided with
the need to reduce chemical use and, fortuitously, with the remarkable
progress noted in new approaches to pest and disease control.
These approaches, based on genetic processes and improved pest
management systems, have provided different ways to cope with
diseases. Within the horticultural sector, viticulture is particularly
sensitive to such pressures since it is the largesive to such pressures since it is the largest user of chemicals
outside of the cereal sector. Environmental concerns have led
to both public and private initiatives to adopt more friendly
cultural, production and distribution practices. This implies
the need for new production systems, packaging types, and handling
methods.
A number of diseases seriously affect grape production. A few
of these, for example viruses of the fan leaf complex, the mildews,
eutypa, bunch rots and phylloxera are of global concern while
others such as ESCA, Pierceís disease, and phyto plasmas
are of more regional concern. These diseases lower vine production
and increase costs and can lead to severe losses to growers. Some
of them also adversely affect grape quality. The control of these
diseases is necessary to maintain the required quality of grapes
and grape products, for the economic health of the affected producers
and to limit the opportunity for the diseases to spread to other
areas.
Increased global competition between high and low cost producers
has accelerated the need to find competitive responses. High cost
producers have co-existed alongside low cost producers for a long
time mostly because they produce different quality products and
offer different packages of services. However, this gap is narrowing
as formerly inefficient and low quality producers use new (to
them) technologies to improve their production and handlinchnologies to improve their production and handling practices.
Thus producers will need to find new products, markets, or practices
in order to differentiate themselves from other producers.
People are living longer in most countries of the world. This
has resulted from improved diets and increased attention to health.
This trend has had important impacts in the grape and wine sector.
Grapes are viewed as ìhealthyî food, and wine is
increasingly identified with improved health. There is an opportunity
for grape-based industries to exploit this link in marketing programs
based on credible scientific evidence.
There has been an acceleration in the speed of technology transfer
in viticulture and enology between both continents and countries
in recent years due mostly to investors moving know-how from developed
but high cost countries to areas where the climate and water supply
is good for grapes, the political situation is stable and the
labor is cheap. Examples of this are the now massive table grape
and wine industry in Chile and South Africa, the increasing quality
wine production of Argentina, the French-based wine industry in
Uruguay and the table grape industry of northern Brazil that will
soon go international. If the private domination of technology
transfer is to be lessened then the public sector will need to
improve in identifying, coordinating and funding research needs.
However, such efforts are ofteresearch needs.
However, such efforts are often limited in effectiveness by the
lack of adequate funds, competition between national interests,
and concerns about who gains and who loses. 4. Research Needs in Viticulture, Enology and Grape Processing
The research needs identified in the following sections have been
compiled from reviews of OIV (Office international de la vigne
et du vin) and Vine Link activities, from reviews of selected
literature, and from discussions with other experts. The suggestions
are organized according to the major problem areas discussed above.
It is stating the obvious to suggest that research needs in viticulture,
enology and grape processing vary considerably between continents
and between countries. However the research requirements of lesser
developed countries may often be met by technology transfer from
other countries.
The obvious inadequacy of data for informed public and private
decisions calls for extensive research on improved global information
systems, particularly relating to specific quality segments of
production. Some specific needs include: a periodic inventory
of grape plantings classified by varieties; expanded ampelographic
description of vine varieties; studies of ìzonageî
for the purpose of defining areas according to the quality of
grapes produced; and the development of improved crop forecasting
methods needed to increasof improved crop forecasting
methods needed to increase the quality of marketing decisions.
The increased importance of trade leads to a number of significant
research needs relating to international codes of practice. The
extent to which they can be agreed upon will influence the ease
with which trade is conducted. Research is needed to focus on
a revision of the OIV International Code of Enological Practices
by considering important wine making processes such as reverse
osmosis membranes for the self-enrichment of musts; electrodialysis
membranes and cation exchange resins for the tartaric stabilization
of wines; microbiologic analysis of wines and musts; chemical
acidification of musts; use of exogenous tannins derived from
both oak and chestnut, sugar addition to musts using grape juice
concentrate or saccharose; treatment with pectolytic enzymes;
levels of residues; and interpretation of analytical results.
Other research concerns are to establish a data bank on the constituents
of wines and musts; to develop a guide of best practices in the
transportation of bulk wine; to analyze the effects of ethyl carbamate
and the use of urease; and to determine the appropriate limits
of pesticide residue.
Significant added research is needed to develop effective genetic
solutions to the control of fungal diseases. These diseases have
become of particular concern since fewer chemical controls are
available and conventional breedin controls are
available and conventional breeding methods for developing resistance
do not maintain varietal integrity. Genetic processes of developing
disease resistance, unlike traditional cross-breeding, do this
without changing the variety of the grape or its flavor. These
considerations are important where marketing is based on the variety
of the grape, for example Chardonnay for wine, or where only authorized
varieties can be used. Genetic engineering makes it possible to
incorporate into existing grape varieties resistance to diseases
such as powdery mildew (Uncinula necator), downy mildew
(Plasmopara viticola), eutypa/dying arm (Eutypa lata),
and a range of damaging virus diseases. Vine Link has fostered
cooperative research aimed at non-chemical alternatives for combating
diseases causing degeneration of vine wood and subsequent mortality.
There is considerable conservatism in all the grape industries
especially in the wine industry which on a world basis favors
relatively few flavorful varieties. Clonal selection has been,
and continues to be, a remarkably simple and effective method
for improving both the productivity of existing grape varieties
and the quality of their grapes. Clonal selection involves using
the cuttings from superior vines to generate new vineyards. Superior
vines can be high yielding and/or capable of providing grapes
which make better wine, raisins or table grapes. This method er wine, raisins or table grapes. This method of
improvement is based on selecting vines that have low natural
levels of graft-transmissible diseases such as viruses or using
techniques to eliminate these diseases. Some clones are thought
to have small genetic mutations which are almost impossible to
detect with existing DNA technologies which give rise to their
better performance.
Bio-sciences now offer the means to diversify the varietal base
of grape industries without encountering the problems of past
breeding efforts. Conventional plant breeding was used as the
way to develop disease resistant grapevines, but consistently
resulted in unwanted flavor changes. Similar varietal conservatism
exists in raisin grapes where Thompson Seedless, Zante Currant
and muscats dominate production. Although many new table grapes
have been obtained by conventional breeding, again the Thompson
Seedless is by far the leading variety. In the grape juice industry
production is dominated by Concord and Isabella which are both
Vitis labrusca based varieties. Genetic engineering in
which resistance genes are expressed in existing varieties is
likely to attract massive funding in many countries over the next
few years as encouraging results begin to flow. This could lead
to rapid progress. However commercial prospects from patenting
and exploiting existing varieties into which disease resistance
has been incorporated will prevent serious in
has been incorporated will prevent serious international cooperation.
Competition between high and low cost producers and between traditional
and new producers is generating needs for research on new product
development, product differentiation and marketing strategies.
Research on the chemistry and molecular biology of grape composition
is particularly important in this area because it improves the
understanding of what makes grapes tick and what genes are important.
The results can help in ìfingerprintingî grape varieties
and developing new varieties that better match changes in consumer
preferences. They can also improve the protection of the authenticity
and diversity of grape products. Genetic engineering involving
gene transfers and the use of anti-sense systems to slow down
or inhibit the expression of specific genes will support competitive
strategies by improving fruit quality. For example, there are
now available specific genes to inhibit seed formation at different
stages of berry development so that the combination of large berry
size and seedlessness will be available, a very attractive feature
in the fresh grape market. Anti-sense genes are also available
to prevent the browning reactions of grape berries. Once incorporated
and expressed in grape vines they will inhibit the enzyme, polyphenoloxidase,
and give truly "golden sultanas," a premium dried product.
These genes in white wine grapesed product.
These genes in white wine grapes should greatly reduce the requirement
for added SO2 to prevent the browning of wines. These
efforts will help establish the scientific base by which greater
consumption of grape products can be promoted. Along this line,
there is the need to identify additional economic uses for raisins
in baking, confectionery, and other industries.
Researchers have always given priority to the development of more
efficient cultural methods for horticultural crops. A key area
of needed research is in pruning and vine training methods appropriate
to achieving quality and productivity goals. These changes need
to be linked to wine quality. The American Vineyard Foundation
reports that the most important issue in enology (in California,
at least) is the impact of viticultural practices on wine quality.
The mechanization of viticulture and enology continues at a rapid
rate with all sorts of devices coming forward each year to improve
vineyard operations and the massive bulk handling that occurs
in wineries. There are important needs to develop improved drying
methods to increase the ratio of high quality to low quality raisins
and to investigate the use of Gamma radiation to protect grapes
in transit. Such innovations tend to come from private enterprise
and not from formal academic research. The genetic engineering
of yeast is currently an active research area in enology and aims
to developresearch area in enology and aims
to develop yeasts that rapidly ferment grape sugar into a melange
of desirable flavor products without producing H2S
and volatile acidity. There are attempts to incorporate into yeasts
some of the malo-lactic activities of lactobacilli. All
of these efforts are designed to improve product quality, lower
costs, or better adopt products to consumer preferences. Research
on the economic impact on profits of alternative cultural practices
or wine making processes is needed as part of an effort to maintain
competitive performance in the sector. The research should assess
the impacts of new processes on costs and the ability of sellers
to recoup those costs through market prices.
Environmental concerns have resulted in a large inventory of research
needs. Important among these is the better understanding of the
impact of the environment on grape and wine characteristics. This
is based on the concept of ìterroirî which often
is inaccurately applied to just the influence of soil on fruit
characteristics. This research seeks to determine how the full
range of environmental factors affect the biological processes
of grapes grown in a particular site. The factors considered include
soil, water quality, climate, light, moisture conditions and others.
This will help, for example, in learning how to maintain the stability
of vine characteristics in response to environmental chaacteristics in response to environmental changes or
to map the phenology of table grape vines at different levels
of environmental thermic availability. Other research is needed
to find ìsafeî pest control methods including the
wider use of low temperatures and modified atmospheres that will
reduce or eliminate chemical residues on raisins and table grapes,
or in wine. Of particular importance is finding ways to control
viruses of the fan leaf complex and to eliminate the use of methyl
bromide for reducing the number of Xiphenema-nematodes
in vineyard soils and for fumigating fresh fruit. Considerable
attention has been given to integrated pest management, and this
must be seen as a major area of viticultural/entomological research.
However, there is also a need to develop effective institutional
arrangements to foster the use of integrated pest control systems.
The OIV has actively encouraged research to identify environmentally
friendly cultural and processing practices. Research is also needed
to improve the management of vineyard and winery wastes and emissions
through the identification of alternative practices. In many grape
growing countries water is a limiting factor and research aimed
to use the minimum amount water to give optimum grape quality
is a requirement. The same is true for nutrients such as nitrogen,
phosphorus and potassium where there is a need to reduce pollution
of drainage water with leached pollution
of drainage water with leached nutrients from vineyards.
The expansion of trade in grapes and grape products and the development
of new or modified products makes control or monitoring activities
more difficult for both commercial and public organizations. However
the development of new measurement techniques has begun to ameliorate
the problem. This area of research focuses on, for example, varietal
identification using bio-chemical and molecular methods. Highly
sophisticated chemistry is being used to fingerprint wines, and
to establish whether cane sugar has been used; this research indicates
that many of the flavor compounds of grapes are present in unripe
grapes in a bound form. Techniques are being developed to release
these bound flavor compounds
Research seeking to address public health concerns is important
both to the public and private sectors. A minor example is the
need to perfect dosage requirements for SO2 to both
avoid allergies and overcome quarantine problems. Research directed
toward the genetic modification of yeasts, the metabolism of alcohol,
antioxidants and the antiradical action of antioxidant components
of grapes and wine will help the public, and the medical profession,
to better understand the relationships between grapes and health.
5. Areas for Market-Oriented Research
Research is needed to develop techniques for either of
Research is needed to develop techniques for either offsetting
or gaining the scale economies earned by larger producers. These
economies are an important competitive factor in wine, table grape
and raisin trading. They exist at the production and processing
levels, as commonly recognized, but also in shipping, promotion,
distribution, and quarantine inspection. The research focus needs
to be on alternative cooperative arrangements, technological innovations
or product development and promotion that will allow smaller firms
or groups of firms to gain some economies to scale or to avoid
the impacts of more ìefficientî competitors. Part
of this effort should be directed toward product differentiation
and market segmentation strategies that might allow smaller and
larger producers to co-exist in a competitive environment. A common
problem is ignorance among consumers and the trade of differences
in table grapes, raisins and wine. This ignorance can be offset
only if it is properly identified through research so that effective
counter measures can be adopted. Another task is to evaluate competition
from other fruits. Such competition requires thorough evaluation
to determine the extent of its impacts on grape and raisin prices
and volumes. With such research-based knowledge, the trade can
then develop alternative marketing strategies to better cope with
the competitive situation.
Trade in grape products is subject to varying coade in grape products is subject to varying constraints in different
regions and countries. Market and policy research is needed to
reduce or eliminate them. High tariffs or restrictive barriers
are often designed to protect local producers, or to preserve
the margins of wholesalers, and are still the most important constraint
when it comes to export expansion. However, such barriers often
have other costs not evident to policy makers. Continued research
is needed to evaluate the economic, social and political impacts
of tariffs and other trade barriers. Such research may be discouraged
at times because it calls into question political decisions already
enacted. Nevertheless, objective evaluation of policy alternatives
is as necessary to the sectorís well being as is research
on vineyard productivity.
In the fresh market there is a need to identify periods during
the marketing year when traditional suppliers are out of production
or otherwise unable to fill market requirements. The most promising
of these windows for table grapes is during the winter and early
spring (April) with another window in November in large northern
hemisphere markets, particularly in Europe. Further careful study
of European consumer preferences, institutional constraints, and
competitive factors is needed to evaluate the likelihood that
such a change in consumption can be induced. If a study validates
this, then southern hemisphere producers fac
this, then southern hemisphere producers face a significant marketing
challenge. The potential cannot be realized without a careful
analysis of consumer preferences and a marketing program carefully
targeted to match those preferences. The prospect of a three-fold
increase in imports from the southern hemisphere clearly warrants
a serious examination of this situation. 6. Summary
There is considerable overlap of research needs in viticulture,
enology, health, and economics. However, a simple classification
helps in summarizing the needs that are discussed in this report.
The research needs in viticulture center on clonal selection,
genetics and breeding, ecology, physiology, cultural practices
(including pruning) and mechanization. Perhaps the most critical
of these needs is to overcome viruses of the fan leaf complex,
which are transmitted by the nematode Xiphenema-index whose
numbers in soil have been reduced, up to now, by methyl bromide.
The needs in enology can be broadly classed into the areas of
chemistry, microbiology and the enology/viticulture interactions.
Specific needs include the impact of viticultural practices on
wine quality, the reduction of ethyl carbamate levels in wine,
wine making processes such as the extraction of color and flavor
in red wine making, the genetic engineering of yeasts, the measurement
and evaluation of wine components, the management of winery wasten of wine components, the management of winery waste
and emissions, the anti-oxidant properties of wine, and health-related
research such as the metabolism of alcohol. This research leads
to subsequent changes in the International Code of Enological
Practices. The greatest issue in the economic sphere is how to
maintain the economic viability of the sector while meeting consumer
and social needs. The priority research objectives are to improve
the coverage and quality of information systems, to identify and
evaluate emerging market opportunities, to evaluate alternative
production strategies including new systems of pest control, to
assess changes in consumer behavior, to evaluate alternative competitive
strategies and public policies affecting the sector. References
This report is based on the opinions and observations of the authors,
influenced by the following references.
"American Vineyard Foundation." Wines and Vines
79(2): 18-24, 1998.
Caputi, Arthur, Jr. ìAn Overview of Environmental Requirements
for California Wineries.î Presented to the OIV Experts Meeting,
Paris, April 1995.
Fregoni, Mario. Professor, University of the Sacred Heart, Piacenza,
Italy. Personal Communication, February 1998.
Gahagan, Richard. U.S. Bureau of Alcohol, Tobacco and Firearms,
Personal Communication, March, 1998.
International Office of Vines and Win March, 1998.
International Office of Vines and Wine (OIV). ìAvant Projets
de Resolutions, Etape 3.î Paris, November 1997. _____. Summaries of the Three Commissions and Biotechnology. 76th General Assembly of the OIV, Capetown, South Africa, November 1996.
_____. Resolutions de la 75ème Assemblee Generale.
Punta del Este, Uruguay, December 1995.
Ivie, Robert. American Brandy Association, California. Personal
Communication, February 1998..
Lien de la Vigne (Vine Link International). ìLa Filiere
Vin et ses Defis: Les Reponses Techniques de Lien de la Vigne.î
Presentation to the Senate of France, Paris, January 1998.
_____. Operations Report. Paris, 1997. Meredith, Carole. Department of Viticulture and Enology, University of California, Davis. Personal Communication, January 1998. © WCHR |