In the first post in this series The Future of Vineyard Management, we looked at the changing conditions facing the Australian wine industry. We also considered the need for vineyard businesses to decide which assets are worth preserving, improving or reconsidering.
That same thinking applies to vineyard management.
This raises an important follow-on question: if the industry has changed, does the management model also need to change?
A hybrid vineyard management approach to doesn’t need to add complexity. Instead, it can create clearer boundaries between day-to-day operations, improvement works and long-term investment.
Under this model, professional vineyard management continues to guide seasonal operations. The vineyard program reflects site conditions, production goals and desired fruit quality.
The business can then build its annual operating budget around the work needed to achieve those outcomes.
Redevelopment, trellis replacement, irrigation upgrades and major repairs can significantly increase annual costs. When businesses include these projects within the normal operating budget, they can lose sight of what the vineyard actually costs to run each season.
By separating these costs, vineyard owners can gain a clearer picture of both operational performance and longer-term investment requirements. It also highlights the investment needed to maintain or improve the asset.
Owners can more easily identify what it costs to produce fruit and what it costs to improve the vineyard. They can then assess whether future investment supports the vineyard’s longer-term role in the business.
A clearer management model gives businesses a better chance of knowing whether they are investing in progress, or simply carrying forward costs that need to be questioned.
A structured management model can help identify which work belongs in the annual operating program and which projects require separate capital planning.
This article forms part of our series on how vineyard businesses can plan, budget and manage with greater clarity in a changing wine industry.
If you are reviewing your vineyard operating model, seasonal budget or long-term management structure, we’re happy to have a practical conversation.
Contact Lach or email office@pridhamviticulture.com.au.