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The influence of labour costs on the sustainability of douro wine farms: an application of ABM

Authors: João Matias (10434829); Adelaide Cerveira (10434832); Cátia Santos (10434835); Ana Alexandra Marta-Costa (10434813);

The influence of labour costs on the sustainability of douro wine farms: an application of ABM

Abstract

Abstract: In Portugal, labour availability has been revealed as a key factor for the activity, particularly in mountain viticulture. The latest statistics present worrying values that could undermine the production of quality wine and the attractive set of wine landscapes considered as a potential resource for tourism development. The Douro Region is one of the main Portuguese wine regions, characterized by a prominent and accentuated mountain viticulture. This paper aims to simulate the behaviour of its farms about the changes in the price of labour, through Agent-Based Models (ABM). The MATLAB software was used to obtain periodic functions adjusted to the data that characterize the relevant variables, obtained from face-to-face surveys of 110 farms, and taking into account the data provided by PTFADN. Subsequently, the ABM software (NETLOGO) was selected to simulate the next 100 years, familiarizing the real dynamics based on the previously considered data. Depending on the price of labour at the end of the simulation horizon, with a grape price of 0,77 €/kg, from the 300 initially existing farms survive between 127 and 231 (42,3 - 77%). In a more optimistic scenario, with a grape price of 1,17 €/kg, the survival rate ranges between 72.1 and 93.2%.

Keywords

wine sector, Sociology, 339, sustainability, agent-based model, Agricultural Economics, performance, labour

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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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