Abstract Title: Organic, Biodynamic, or Conventional Viticulture: A methodology for assessing the viability of eco-labeling in South Africa's wine industry.
Author(s):
Christian Patrick Heidkamp, Ph.D.* - Southern Connecticut State University
F. Tyler Huffman, Ph.D.* - Eastern Kentucky University
Abstract:
This paper assesses the land management implications of the emergence of market differentiation with respect to values-based labeling—commonly referred to as eco-labeling—in the South African wine industry. Eco-labeling is a now commonplace market-based approach focused on informing consumers about more responsible (stricter) production standards of certain goods (or services) such as: biodiversity protection, organic production, and/or the use of renewable resources. Competing against the superior—or at least perceived as superior quality of grapes produced in traditional growing regions (e.g., France, Italy) a number of producers in South Africa (a rather recent entry on the world wine market) have embraced the idea of eco-labeling in the wine industry. In order to take part in such labeling programs producers will have to undergo and bear the cost of third party certification, usually through non-governmental organizations. In addition, producers will incur increased production costs as a result of adhering to stricter production standards. On the other hand, taking part in eco-labeling programs may lead to increased income (eco-labeled products generally fetch a higher price at the market), which may or may not compensate for increased production costs. In short, producers have to make a number of choices in order to respond to and assure financial viability in an increasingly differentiated market. This paper develops a methodology intended to aid producers in making these choices through the integration of cost benefit analysis (CBA) and geographic information systems-based (GIS-based) land suitability models.
