The Wine Market in the Czech Republic and the Politics of Wine

The dissertation thesis is focusing on the wine market in the Czech Republic. The aim is to identify weaknesses in the wine sector in order to formulate recommendations for improving a current situation in the sector. The Common Agricultural Policy of the European Union and the Common Market Organisation for Wine was presented in the theoretical part of the thesis, where also theoretical aspects of a market including supply and demand were described, as well as an agri-food market and its specifics, wine commodity chain, determinants of demand, supply and prices of wine. In the following chapters an analysis of the wine market, especially with emphasis on the production potential of vineyards in the Czech Republic was created, and demand, supply and price of wine including a price transmission in the commodity chain of wine were modelled based on a regression analysis. The significant influence on demand of wine have had previous values of wine consumption and wine prices, substitutes consumptions (prices of substitutes were not a significant factors), household income and salary, a quality of the wine and awards in international competitions. Significant factors of the side of supply including the price of wine grapes, the price of wine, vineyard area, production of wine grapes, some aspects of weather and certain subsidies. A climate change, which is in progress, may result to the expansion of viticulture and winemaking in the Czech Republic and also to a change of varieties in vineyards. Demand has in the commodity chain of wine greater impact than the supply. It can have a negative effect on growers or winemakers. Planting of vines is not sufficient to maintain current levels of a production potential of vineyards in the Czech Republic. The ideal amount of annual planting vines should be about 655 ha. A related issue is financing a vineyards renewal, which is costly. Based on a financial analysis of small and medium-sized wine companies, it was found that these businesses cannot afford the renewal of vineyards from its own resources and will require grant assistance of the state, eventually EU

Differences in the Economic Situation of Organic and Conventional Winemaking Enterprises

The number of organic farms in the Czech Republic is increasing as well as the number of organic winemaking enterprises. The article deals with an evaluation and comparison of the economic situation of organic and conventional winemaking enterprises in the Czech Republic. An economic analysis of the 75 enterprises accounting data from 2007 to 2011 has been done. The financial analysis indicators, bankruptcy models, efficiency indicator and performance indicators were calculated. In order to compare the values of the respective indicators the t-test was used. The performed analysis confirmed a better economic situation of organic winemaking enterprises. Winemaking businesses – whether organic or conventional – are capable of a good financial management and generate profit even without the aid of any subsidies. This article was created as a part of IGA 20141046 project