Presentations to California Association of Winegrape Growers, April 2015.
The following conclusions are made in this presentation:
- Exchange rates are one of several factors that effect grape prices.
- A strong dollar makes imports more competitive with domestic wine, thus lowering grape prices in California (at least for those segments where imports are a substitute)
- But decreasing U. S. demand for inexpensive wine coupled with large CA harvests also reduces CA prices (supply/demand)
- We live in a global marketplace. The two strategies for success are:
- Differentiation (i.e. reduce the potential for substitution)
- Increased efficiency (out compete foreign producers)
See PDF presentation here: What Drives Imports and Exports of Bulk Wine? by James T. Lapsley