This report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
The Grape Growing industry consists of businesses mainly engaged in growing or sun-drying grapes. Grape growers purchase raw materials such as herbicides, pesticides, bird nets and irrigation systems and grow grapes for crushing for wine making (which are sold directly to wineries) while also selling table grapes whole to fruit wholesalers and retailers. Some of the grapes are also dehydrated or dried for packaging as sultanas and sold to consumers via grocery distributors.
The primary activities of firms in this industry are:
- Wine grape growing
- Grape sun-drying
- Table grape growing
- Vineyard operation