The territorial dimension of transactions in the Canary Islands’ grape market

  1. Godenau, Dirk 1
  2. Martín-Rodríguez, Gloria 1
  3. González-Gómez, José Ignacio 1
  4. Cáceres-Hernández, José Juan 1
  1. 1 Universidad de La Laguna

    Universidad de La Laguna

    San Cristobal de La Laguna, España


Boletín de la Asociación de Geógrafos Españoles

ISSN: 0212-9426 2605-3322

Year of publication: 2022

Issue: 94

Type: Article

DOI: 10.21138/BAGE.3257 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

More publications in: Boletín de la Asociación de Geógrafos Españoles


The territorial dimension of transactions between grape growers and wine producers in the Canary Islands’ grape market is examined. This is a market fragmented into different wine-grape zones and institutionally organised through protected designations of origin (PDOs) which, except in the case of one that is regional in scope, restrict the spatial mobility of grapes. We use information from the harvest declarations submitted by grape growers, which indicate the location of the vineyard plots, and production declarations submitted by the wine producers, which indicate the grape grower who supplies grapes to their winery, as well as from harvest reports, which contain a record that facilitates the traceability of the grape's journey from the plot of origin to the winery of destination. The results obtained show that there are hardly any inter-island movements of grapes and that inter-zone transactions were selectively intensified between the wine-grape zones of the island of Tenerife following the creation of a regional PDO.

Bibliographic References

  • Altschuler, B. (2012). Social boundaries and asymmetries in today’s winemaking in Mendoza. Cuadernos de Desarrollo Rural, 9(68), 151-175.
  • Anastasiou, E., Castrignano, A., Arvanitis, K., & Fountas, S. (2019). A multi-source data fusion approach to assess spatial-temporal variability and delineate homogeneous zones: A use case in a table grape vineyard in Greece. Science of the Total Environment, 684, 155-163.
  • Anderson, K., Norman, D., & Wittwer, G. (2003). Globalisation of the world’s wine market. The World Economy, 26(5), 659-687.
  • Banks, G., & Overton, J. (2010). Old world, new world, third world? Reconceptualising the worlds of wine. Journal of Wine Research, 21(1), 57-75.
  • Cadot, J. (2015). Agency costs of vertical integrationthe case of family firms, investor-owned firms and cooperatives in the French wine industry. Agricultural Economics, 46, 187-194.
  • Camagni, R. (2008). Regional competitiveness: Towards a concept of territorial capital. In R. Capello, R. Camagni, B. Chizzolini & U. Fratesi (Coord.), Modelling Regional Scenarios for the Enlarged Europe. Advances in Spatial Science (pp. 33-47). Springer.
  • Capello, R. (2016). Territorial competitiveness and endogenous development: Innovation and proximity. In R. Capello, Regional Economics (pp. 235-272). Routledge.
  • Castillo, J.S., Villanueva, E.C., & García-Cortijo, M.C. (2016). The international wine trade and its new export dynamics (1988-2012): A gravity model approach. Agribusiness, 32(4), 466-481.
  • Fernández Olmos, M. (2008). Why use contracts in viticulture? Journal of Wine Research, 19(2), 81-93.
  • Fernández Olmos, M. (2010a). The performance implications of “grow or buy” decisions in the wine industry. Food Policy, 35, 256-264.
  • Fernández Olmos, M. (2010b). An investigation of factors that influence the survival of contracts in the DOCa Rioja wine industry. Applied Economic Perspectives and Policy, 32(2), 298-318.
  • Fernández Olmos, M., Rosell-Martínez, J., & Espitia-Escuer, M.A. (2008). Double sided moral hazard and share contracts in agriculture. In 12th Congress of the European Association of Agricultural Economists. Ghent, Belgium, August 26-29.
  • Fernández Olmos, M., Rosell-Martínez, J., & Espitia-Escuer, M.A. (2009). The relationship between product quality and transaction costs with vertical coordination in DOC Rioja winegrape industry. Spanish Journal of Agricultural Research, 7(2), 281-293.
  • Fernández Olmos, M., Dejo-Oricain, N., & Rosell-Martínez, J. (2016). Product differentiation strategy and vertical integration: An application to the DOC Rioja wine industry. Journal of Business Economics and Management, 17(5), 796-809.
  • Fraser, I. (2003). The role of contracts in wine grape supply coordination: An overview. Agribusiness Review, 11(5), 1-16.
  • Fraser, I. (2005). Microeconometric analysis of wine grape supply contracts in Australia. The Australian Journal of Agricultural and Resource Economics, 49, 23-46.
  • Gangjee, D.S. (2017). GIs beyond wine: Time to rethink the link? IIC – International Review of Intellectual Property and Competition Law, 48, 129-133.
  • García-Cruz, J.I., Febles-Ramírez, M.F., & Pestana-Pérez, G. (2017). Las Tecnologías de la Información Geográfica aplicadas a la sistematización de los sistemas agrarios. Bases para el estudio de su dimensión espacial y temporal. El caso del mapa de cultivos de Canarias (España). GeoFocus, 19, 181-206.
  • García-Rodríguez, J.L. (2019). La política agraria europea y el cultivo de la vid en las Islas Canarias. Biblio3W Revista Bibliográfica de Geografía y Ciencias Sociales, 24(1263), 1-27.
  • Godenau, D. (2008). Alcance y limitaciones de la economía de las experiencias en el mundo del vino. In Cabildo Insular de Tenerife (Ed.), VI-VII Jornadas Técnicas Vitivinícolas Canarias (pp. 1-17). Servicio Técnico de Agroindustrias e Infraestructura Rural del Área de Agricultura, Ganadería y Pesca del Cabildo Insular de Tenerife.
  • Goodhue, R.E., Heien, D.M., Lee, H., & Sumner, D.A. (2003). Contracts and quality in the California winegrape industry. Review of Industrial Organization, 23, 267-282.
  • Gouveia, S., Rebelo, J., & Lourenco-Gomes, L. (2018). Port wine exports: a gravity model approach. International Journal of Wine Business Research, 30(2), 218-242.
  • Jano, P.A. (2017). Quality choice and market access: Evidence from Chilean wine grape production. Agribusiness Research, 33(3), 324-338.
  • Karlik, L., Lauko, V., Faltan, V., & Matecny, I. (2018). Qualitative analysis of natural terroir units. Case study: Modra wine rayon (Slovakia). Applied Ecology and Environmental Research, 16(2), 1257-1274.
  • Kodama, T. (2019). GIs and the concept of terroir for the development of local wine and sake clusters in Japan. In 42nd World Congress of Vine and Wine, BIO Web of Conferences 15, 03006.
  • Macías-Hernández, A. (2005). El paisaje vitícola de Canarias: cinco siglos de historia. ERÍA: Revista Cuatrimestral de Geografía, 68, 351-364.
  • North, D.C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
  • Pine, B.J., & Gilmore, J.H. (1998). Welcome to the experience economy. Harvard Business Review, 76(4), 97-105.
  • Pomarici, E., Corsi, A., Mazzarino, S., & Sardone, R. (2021). The Italian wine sector: Evolution, structure, competitiveness and future challenges of an enduring leader. Italian Economic Journal, 7, 259-295.
  • Ramos, M.C., Jones, G.V., & Yuste, J. (2015). Spatial and temporal variability of cv. Tempranillo phenology and grape quality within the Ribera del Duero DO (Spain) and relationships with climate. International Journal of Biometeorology, 59(12), 1849-1860.
  • Saavedra, A., Alonso, J., Rodrigues, S., Araújo-Paredes, C., Mendes, S., & Valín, M.I. (2019). Agro-ecological terroir units in the North West Iberian Peninsula wine regions. Applied Geography, 107, 51-62.
  • Smith, L., & Wigham, P. (1999). Spatial aspects of vineyard management and wine grape production. In SIRC 99 – The 11th Annual Colloquium of the Spatial Information Research Centre. University of Otago, Dunedin, New Zealand, December 13-15th.
  • Traversac, J.B., Rousset, S., & Perrier-Cornet, P. (2011). Farm resources, transaction costs and forward integration in agriculture: Evidence from French wine producers. Food Policy, 36(6), 839-847.
  • Wilson, M.M.J., MacDonald, I., & Monnane, M.M. (2018). Controlling opportunism in the wine industry: the role of contract monitoring and contract incentives. Journal of Wine Research, 29(2), 87-105.
  • Zylberztajn, D., & Miele, M. (2005). Stability of contracts in the Brazilian wine industry. Revista de Economia e Sociologia Rural, 43(2), 353-371.