Abstract
COVID-19 has triggered an unprecedented global crisis, the increasing recessions in many countries and related trade uncertainties are affecting the whole wine sector, from production to distribution, sales, and consumption. While the full recovery is still uncertain, and even worse scenarios are possible if it takes longer to bring back trust and financial stability on wine markets, the crisis risks to jeopardies recent developments and sustainability in wine territories. Developing from a mixed-method participatory research process that integrates recent economic prospective with diverse experience data, we offer a critical reflection made by researchers and stakeholders supporting several socio-economic narratives and policy implications in the light of the current crisis. Distinguishing between short and long-term implications, we offer a reflection on the policy needs to alleviate the ongoing suffering of the sector. The speed and scope of the pandemic crisis underscore the need for the wine sector to become more resilient by increasing the ability to cooperate and coordinate among supply chain actors and between policy levels. The latter offers a reflection on the balance between short-term interventions and the complementarity of post-2020 CAP measures to stabilize market and future incomes. We conclude that once the crisis abates, it will be necessary to reaffirm credible commitment and trust at all levels, not only with regard to the vineyard and the cellars but also on distribution, especially in the face of a changing demand that in the future will become more pressing for issues related to safety and sustainability.
Highlights
The Covid-19 Pandemic has triggered devastating consequences both for human lives and for economic progress
We analyzed the consequences of the COVID-19 outbreak on wine sector building on a tailored revision of the CSP framework of Grando et al (2020) that allowed us to integrate diverse experience data with recent socio-economic narratives bringing out key elements for short and long-term policy implications
The most prominent economic narratives support that despite an arsenal of macro-prudential support policies in the near term the pandemic caused the disruption of domestic demand and supply, trade, and finance
Summary
The Covid-19 Pandemic has triggered devastating consequences both for human lives and for economic progress. The International Organization of Vine and Wine (OIV) sees in the near future a huge drop in wine consumption, as well as a reduction in average prices, and in sales margins and turnover. While the Covid-19 pandemic has quickly delivered a global economic shock with catastrophic consequences, the increasing recessions in many countries and related trade uncertainties are affecting the entire wine sector, from production to distribution, sales, and consumption. The pandemic and the set of measures adopted to contain it, have led to massive downturns in global economies, and to increasing disruptions to global supply chains, trade that collapsed in the first half of 2020, and tourism for which the World Tourism Organization (UNWTO) has estimated a decline of 44% in international tourist arrivals with a loss of about 159 billion Euros just for the first quarter of 2020. Building on a Conditions-Strategies-Performance framework (Grando et al, 2020) adapted to the emergence of the COV-
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