Economic comparison of viticultural cultivation systems: evaluating costs across integrated, organic, and biodynamic practices

Abstract Understanding the financial implications of different cultivation systems is essential for wineries to make strategic decisions. This study carries out a comparative analysis of the cost structures of the three cultivation systems of integrated, organic and biodynamic viticulture. The analysis uses a full cost accounting approach to include fixed and variable costs in cost shares such as machinery, labour, materials, establishment of a new vineyard, land and other costs. The data originates from an eighteen years long-term trial, enabling a comparison based on the cultivation systems’ initial situation. The cost structures are evaluated in various scenarios and expressed in terms of functional units per hectare and per kilogram of grapes. The results show clear contrasts in cost distribution and total expenditure for the cultivation of grapes. Integrated viticulture offers the lowest cost per kilogram of grapes, while organic viticulture incurs the lowest costs per hectare. Under our conditions, the degree of higher mechanisation cannot be considered more effective for any cultivation system. However, winery size has a negative correlation to the costs per hectare and the costs per kilogram of grapes. Manual harvest method was identified as a main driver of production cost. Labour and machine costs already account for over 60% of total costs. The greatest potential for exploitation lies in the effective use of operating resources, like plant protection agents or fertilisers, which could substantially reduce material costs. The smallest differences between the cultivation systems can be seen in the cost shares for establishing a new vineyard and for land costs.