Making wine, selling grapes, or delivering to a cooperative? Determinants of grape allocation

Abstract A typical characteristic of the wine supply chain in Old World is significant share cooperatives wine-making that coexists with investor-owned firms and on-farm wine-makers. This paper analyzes determinants whether grape growers deliver their grapes to a cooperative winery which they are members, sell outside wineries, or make own on farm. Our analysis based data from wine-producing area Northern Italy. The explanatory variables comprise potential prices linked different allocations various farmer farm characteristics. high farmers delivering can, large extent, be explained by higher price relative one spot markets. On-farm favored larger farms more educated farmers.