The performance of grape production in the Czech Republic

Abstract

Grape is a major agrarian input for winemaking in the Czech Republic (Czechia). This contribution assesses the performance of grape production in Czechia. The country's performance is compared with Slovakia and some major producing countries in the world. Using the OLS approach, the results show that area harvested, yields, farm gate price and wine export have a positive relationship with grape production in Czechia. The descriptive approach shows Czechia as a net importer of wine. Also, grape yields in Czechia and Slovakia have been below the EU and global averages. These two countries' wine exports have been concentrated in few markets within the EU single market. There is a need for grape farmers in the countries to find ways to improve yield per hectare. Similarly, export promotion should be encouraged and diversified beyond the EU markets to reduce external demand volatility or shocks. Arguably, this measure may accelerate foreign earnings from grape and wine related export products in the country.