ASAJA Castilla y León presented a first study of the production costs of grapes in the D.O. Rueda.
This paper aims to show the real average cost of grape production in the Rueda Designation of Origin, with the purpose of the agents involved in the production process, producer and marketer of the product have a clear and transparent idea of the intrinsic value of producing grapes in this denomination.
Analyzed various costs and average expenses such as: raw materials and products, machinery, labor, depreciation, irrigation and other concepts, it follows that the average costs of production per hectare in the Appellation of Origin Rueda are 4,182,56 euros per hectare irrigated and 3,809.39 in rain-fed. Quantities that are increased up to 11% if the cultivation is carried out in organic regime, each day more present in this Designation of Origin.
This is the first study of grape production costs carried out in Castile and León. The fifth in Spain, in terms of rigorous and serious studies, after those of the Agricultural Prices Observatory of the Government of La Rioja; the also published last October by the Provincial Council of Álava; the study of grape production costs for winemaking carried out by the Polytechnic University of Valencia, for the Interprofessional Organization of Wine of Spain (OIVE); and the recently published by the Generalitat of Catalonia for Cava. All these studies, plus consultations with growers, wineries and technicians of the Denomination have served as a reference. In these studies, the production costs per hectare were determined as follows:
The contracts must collect at least that minimum price, which from our organization we advise to be open upwards, in a crop 2022 that we already have above, qualified by different territorial representatives of the world of vines and wine in our country of very scarce, influenced by the lack of rain and extreme temperatures, which in Rueda is no different. Also so short is foreseen in our two neighboring countries and large grape producers, for the same circumstances, France and Italy. Circumstances which should lead to an increase in the prices of grapes, which are only what happens with the rest of the materials and services.
The largest items of expenditure are taken by the machinery that represents 1,274 euros per hectare, 30% of the total (33% in rain-fed). Followed by the cost of labor, which, on average, amounts to 1,239.5 euros per hectare, 30% (33% in rain-fed). Without forgetting that, with the exception of depreciation, all items are being increased from month to month due to the inflation we suffer.
ASAJA has transferred this report to the Ministry of Agriculture, Livestock and Rural Development. Remember that it has a Directorate-General for this purpose, who is responsible from the Food Chain Observatory to analyze the evolution of prices and added value at all stages and, therefore, monitor compliance with the new Law on the Agro-food Chain. It is important to stress that, in order to denounce abusive practices to the Food Information and Control Agency (AICA), it is essential to set average production prices, below which they are produced at a loss.
The territory of the D.O. Rueda already has 21,000 hectares, mostly dedicated 92.66%, to the cultivation of white grapes, which are 20,232 ha, of which 18,000 ha are of the variety Verdejo and 1,600 ha of Sauvignon Blanc; the rest of the varieties are insignificant, some like Palomino and Viura in clear recession.