ECONOMICS OF THE WINE BUSINESS

The course aims to provide students with the basic tools to understand the principles of Wine Business Economics, addressing fundamental concepts such as utility, goods and needs, demand and supply, production cost theory, profit maximization, and other economic and managerial aspects specific to the wine sector. Particular attention will be devoted to the dynamics underlying the organization and management of wine businesses, from production to wine marketing, with reference to both national and international markets.
Through lectures and the presentation of case studies, students will acquire the skills needed to analyze the economic, managerial, and strategic issues that characterize wine companies.

At the end of the course, students will be able to:

1. Knowledge and understanding: understand the role and importance of the wine sector within the agri-food system and within the national and global economy;

2. Applying knowledge and understanding: apply the acquired knowledge to develop arguments about the different types of wine markets and the various methods of economic evaluation to determine business benefits;

3. Making judgements: collect and interpret data and information aimed at analyzing costs, and revenues, useful for assessing the efficiency and competitiveness of wine businesses;

4. Communication skills: communicate the results of analyses through discussions encouraged by the lecturer, identifying managerial and strategic solutions to achieve the objectives set by the wine company;

5. Learning skills: independently develop the acquired skills to analyze case studies related to the sector and establish connections with other subjects within the degree program.

Frontal lessons and classroom exercises, as well as participation in any fairs and / or meetings.

The course is structured in 63 hours of which 21 hours of lectures and 42 hours of exercises.

If teaching is given in a mixed formula or remotely, necessary changes may be introduced to what was previously stated in order to comply with the provided and reported syllabus.

Learning assessment may also be carried out on line, should the conditions require it.

For any questions or clarifications, Gioacchino Pappalardo can be reached remotely or in presence on the days and in the manner reported on the web page: https://www.di3a.unict.it/docenti/gioacchino.pappalardo

As a guarantee of equal opportunities and in compliance with current laws, interested students can ask for a personal interview in order to plan any compensatory and/or dispensatory measures, based on their specific needs and on teaching objectives of the discipline. 

Agenda 2030 Objectives:

The course contributes primarily to the achievement of the following Sustainable Development Goals (SDGs) of the 2030 Agenda:

• SDG 8 – Decent Work and Economic Growth: through the analysis of the economic principles governing wine-growing enterprises, including demand and supply, markets and prices, production costs, production factors, and business performance, the course provides students with the knowledge required to understand the economic efficiency, profitability, and sustainability of wine-growing activities.
• SDG 12 – Responsible Consumption and Production: through the analysis of production processes, production factors, costs, and the economic performance of wine-growing enterprises, the course contributes to developing an understanding of the efficient allocation and use of productive resources and the economic implications of production choices.

Contents:

2. Principles of Microeconomics: Demand and Supply.

3. Markets and Prices.

4. Production Cost Theory.

5. Income statements of the wine-growing farm: Production and Factors of Production.

6. Assets and Liabilities in the Income Statement.

7. The profit equation.

1. Introduzione all'economia agroalimentare. Louis Malassis e Gérard Ghersi. Bologna, Ed. Il mulino, 1995.
2. Teacher slides in PPT divided for each of the topics listed in the "Course Planning" section. The slides can be consulted and downloaded from the "Studium-Unict" website.

Evaluation of the student's preparation will be based on the following criteria: the student's ability to learn and level of in-depth study of the topics covered, the student's property of synthesis and exposition, and the student's ability to reason.

Grading will follow the following pattern:

Ineligible: 

Knowledge and understanding of the topic: significant shortcomings and inaccuracies

Ability to analyze and synthesize: irrelevant with frequent generalizations

Use of references: completely inappropriate

18-20:

Knowledge and understanding of the topic: very modest with evident imperfections

Analysis and synthesis skills: barely adequate

Use of references: just appropriate

21-23:

Knowledge and understanding of the topic: knowledge is slightly above the minimum acceptable level

Ability to analyze and synthesize: a fair bility to analyze and synthesize information, presenting arguments in a logical and coherent manner

Using references: use standard references

24-26:

Knowledge and understanding of the topic: good knowledge

Analysis and synthesis skills: good analytical and synthesis abilities, arguments are presented consistently

Using references: use of standard references

27-29:

Knowledge and understanding of the topic: knowledge more than good

Ability to analyze and synthesize: considerable abilities of analysis and synthesis

Use of references: the topic has been explored in depth.

30-30L:

Knowledge and understanding of the topic: excellent knowledge

Ability to analyze and synthesize: excellent abilities of analysis and synthesis

Use of references: important insights.

Learning assessment may also be carried out on-line, should the conditions require it. To ensure equal opportunities and in compliance with current laws, students may request a personal interview in order to plan any compensatory and/or dispensatory measures based on educational objectives and specific needs. Students can also contact the CInAP (Centro per l’integrazione Attiva e Partecipata — Servizi per le Disabilità e/o DSA) through the referring professor within the department, (https://www.cinap.unict.it/content/referenti).

Markets structure

Production Costs.

Profit margins