Tony Correia 2009

Tony Correia 2009 - 1 Vineyard and Land Values Vineyard and...

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Unformatted text preview: 1 Vineyard and Land Values Vineyard and Land Values The Ten Year Itch The Ten Year Itch The Great Grape Cycle, Redux The Great Grape Cycle, Redux U C Davis Monday, April 15, 2009 Tony Correia U C Davis Monday, April 15, 2009 Tony Correia California Chardonnay This Time, Its Different.??? 500 600 700 800 00 Tons) $900 $1,100 $1,300 on 100 200 300 400 75 78 81 84 87 90 93 96 99 02 05 08 Production (1,00 $300 $500 $700 $900 Price per T 2.0 2.5 3.0 3.5 on (Mill tons Five Year Moving Average California Wine Grapes 0.0 0.5 1.0 1.5 1971 74 77 80 83 86 89 92 95 98 01 O4 2007 Productio The Plague Years 2 0 2.5 3.0 3.5 4.0 n (Mill tons $400 $500 $600 $700 per Ton California Wine Grapes Average Price per Ton 0.0 0.5 1.0 1.5 2.0 1971 74 77 80 83 86 89 92 95 98 01 O4 2007 Production $0 $100 $200 $300 Price p 2 Major Vineyard Issues Major Vineyard Issues Its the Economy Major Vineyard Issues Major Vineyard Issues Wine Cycle > Planting mode, again Generational Transition Accelerated by Economy?? Competition for Land continues Professional Investors Real Estate Speculation has disappeared Major Players; Public Companies Consolidation and Disaggregation Location; AVAs, Sub-AVAs Major Vineyard Issues Major Vineyard Issues Grape Shortage? > Prices Global Competition Carbon Footprint WATER?? > Frost? Vineyard Designations Vineyard Designations Homesite Values Winery Sites and Permits Conservation Easements (Re) Development Costs Grape Prices New Vineyard (Re-)Development: Grape Prices Location, Location, Location Environmental constraints, entitlement processes Land costs; High land costs force high intensity of use Homesite Values, add cost but no income Materials and labor costs Water Location 3 Vine Acres; Changes Overall : 1995 > 2007 ; 2001 > 2007 Cen Coast 300,000 400,000 500,000 North Coast Central Valley Others Lodi 100,000 200,000 1995 1997 1999 2001 2003 2005 2007 Vineyard Values vs Grape Prices; Sonoma County $90,000 $110,000 $130,000 $2,000 $2,500 Chardonnay $10,000 $30,000 $50,000 $70,000 1994 1996 1998 2000 2002 2004 2006 $500 $1,000 $1,500 Vineyard Values vs Grape Prices; Sonoma County $90,000 $110,000 $130,000...
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This note was uploaded on 09/29/2010 for the course VEN 101C 91861 taught by Professor Davidsmart during the Spring '09 term at UC Davis.

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Tony Correia 2009 - 1 Vineyard and Land Values Vineyard and...

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