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Economic Examination of your wine Industry

  • Amar Basnet

Human beings need different kinds of the materials to be able to live daily life some may have more importance and some may hold the less importance. In current business world we can find different kinds of the merchandise of same kind and same use which is called product product. Different product offers different dynamics which is based on the use, quality, predicated on the manufacturer. But based on the characteristics of the development product are divided in 3 communities which are the following:

  1. Primary Creation: Primary production those products which are produce by natural means or the products which can be wholly based on the nature are called key production. Agriculture development is a best exemplory case of the primary production. The grapes apple and other which is produce by the farmer is considered as the raw material for wine industry.
  1. Secondary production: In the event the development process is related to the production than it is considered as the secondary production. For example production of the tv screen, car, electronics items etc is considered as the secondary creation. In this production process assembling process get excited about it. There are many process involved in the wine development like crushing, fragmentation, etc. that happen to be done by making use of machine which is considered as the secondary production.
  1. Tertiary creation: Productions which is related with the services is called the tertiary development. The types of the tertiary development are education, health facilities, etc.

In recent year the wine is among the most part of the human life. Drinking the wine is considered as the key ritual of the modern modern culture. In recent world Spain, America France and Italy is considered as the main designer of wine on earth. Spanish wine has got the good reputation in today's wines producing country. The wines are produced by using the by natural means produced fruits like grapes, apple and orange and with other fruits of the choice of individual. Spain has got important market in today's wine business world. They are simply one of the old countries on earth which produce wine beverage since early period they are really producing the different qualities of the wine with different price level. They have got the 70 region and they have got the huge wine yard they are believed as the third largest country on the globe in your wine production. There are many places that are famous for the wine creation like Valencia, Ribera, Del Duero, Penedes, etc.

Distribution channel

There are 2 kinds of the circulation channel which is found in wines industry are as follows:

  1. Direct route: According to the channel the producer sell your wine to customer with no agent or retailers here there is no participation of the middleman or agent due to this price will be less or cheap.
  2. Long route: Based on this distribution route the wine is one produce it is given to distributer for example to the wholesaler then it would go to the retailer store, for example to look, off-licence and other shop only then it goes to the client. On basis of the distribution channel there exists involvement of the various channel therefore the price will be high when it reaches to the ultimate customer.

Wine creation is one of the top businesses in the Spain. In order to produce your wine different processes are involved in the wine development. It's got the historical and cultural value in Spanish culture. To be able to produce the wine various process are involved in it the process of your wine production are the following:

  • Harvest: This is actually the first step involve in your wine production. Grapes are the key raw materials for the wine first it should be crossbred and need to b put together well the grapes must be harvested at the exactly the right time to create the best wine beverage and many designer harvest their crop by hands to be able to produce the product quality wine. More recently the professional wineries harvest in line with the taste and coloring of grapes.
  • Crushing and pressing: This is the second process that is mixed up in wine creation process once the grapes or the fruits which are the raw materials are harvest they can be crushed in the device however in order to make the wine beverages qualitative the seeds and epidermis are segregated this will help to make the quality wine and helps to add up color in wine beverages.
  • Fragmentation: This is considered as another important process in wines production. Once the grapes are crushed and pressed then your juice is extracted and the juice is shifted into the large container where yeast is added and fragmentation process begins. It will require 10 to thirty days on; on the basis of the quality of wines the days are determined.
  • Filtering and aging: Once the grapes are fragmented the wine are filtered when the solid and yeast has been removed from the wine and it is distributed in the bottle and case to be aged. There are many aging processes. It is done on the basis of the age and on the basis of bottle.

Wine production contains the various operations. For the success of the any wine beverage industry raw materials capital insight and labour plays the essential role.

Raw material

For your wine industry grapes, apple, orange and various other fruits and berries are believed as the main raw materials. In Spain there are lots of grapes lawn and matching to climatic condition grapes are favourable product to expand and form monetary perspective the Spanish wine beverage producer they choose the grapes as their main recycleables because they are produce in Spain and it is cheap. A number of the other recycleables are sugar cane, yeast, pulp, acids and tannins and different minerals.

Capital input

Capital refers to the sum of the money invest in the business in order to produce the goods. For the success of your wine business capital input is recognized as the life bloodstream of the business. The fixed assets like machinery, loan from the lender, delivery vans and motors, all the tools and equipment etc are considered as the capital input in the wine business. In order to operate the day to day business capital source is very essential without the administrative centre input your wine production can't move forward. Because of this reason we can say that capital source plays essential role in success of the wine industry.

Labour requirement

For the any business qualitative manpower is necessary. In your wine industry also licensed and experience labour is necessary. The quality wine maker can operate daily business as well as can improve the efficiency in the production of the wine this will help in the development of the product quality wine. The wine market is becoming very competitive to be able to compete in the competitive market efficient and trained labour force is required who have potential, which has capacity to improve the efficiency in the work and required those labour make who can understand market situation.

For the any business organization cost control and costing process really helps to move forward. That is one of the fundamental factors that help to run the business enterprise successfully. In order to produce goods strong use raw materials, factors of the productions that are called input. The expenditure which is occurred in it is named cost. A couple of two types of the price changing cost and preset cost. The price which doesn't change with the change volume output is called fixed cost where as the cost which change with changing result is called changing cost. Fixed cost is generally related with the fixed factor of production where as adjustable cost is related with variable factor of the development. The exemplory case of the resolved cost in the wine industry are wages of the staff, lease, insurance, interest on the fixed capital etc where as the example of the changing cost in your wine industry are wages of the everyday labour, expenses of the electricity etc. in the Spanish wines company normally the depreciation fee for the device, salary for the permanent personnel, insurance for the business are set cost they don't really change although they make creation high or low. They don't really aftereffect of the twelve-monthly budgeting because once they are determine they will be same for that entire 12 months. the varying cost change with the change with the per unit creation. The electricity charge is one of the nice example of the wine industry, when the production is high then lots of electricity is employed may be during fragmentation process may be during crushing machine is utilized the more wine we produce more electricity is employed so that it change with the changing outcome.

Economy of the range identifies the reduction in unit cost of a product or service resulting from large-scale operations, such as mass production. This concept of the economy helps the any business corporation to run long run and helps in today's competitive global market. If your wine maker can produce the massive amount the wine than they can purchase the massive amount the recycleables from the company if they take in bulk amount they can enter the cheaper price, once the good and high technology equipment is utilized the development will high and production cost will be less due to which large scale of the creation is prosperous this will help the designer the qualitative successful product in cheaper price. The current economic climate of the size may be accomplished by employing the new technology machine, experienced manpower, by increasing how big is company and machine. This will help in reducing the production cost and helps to increase the end result. The overall economy of the scale is thus achievable in the production by the long run production. In order to achieve the cost-effective of the range the wine developer should emphasis in the increasing the fix cost and decrease the variable cost. Therefore the wine industry should emphasis to get the qualified labour pressure which are well known and has experience about wineries, should try to set up the new technology machine that are multipurpose and help to produce the merchandise in the large quantity.

Wine is becoming an important area of the modern society; it has got the cultural, historical and religious importance. Spain is considered as among the finest wine manufacturer country on earth which produces the various varieties of the wine at the various price level. It's been exporting its product in the different countries. Nepal is one of your wine companies where Spain is exporting your wine each year in huge variety. Wine use has increased within the last a decade. Nepal is one of the tourist destinations for the European and American tourists. Large numbers of the hotel, restaurant, pub, hotel are there in Nepal, they import lots of wine beverages from the Spain. Spanish red wine and dark level are incredibly popular in Nepal and yearly large amount of black level and burgandy or merlot wine are exported to Nepal in huge variety. Although there are lots of barriers, Spain wine beverages producer are offering its product in Nepal. The only one way to export your wine to Nepal is air transport due to the geographical territory. They don't really have access to sea there are lots of mountain to reach Nepal so air transfer is only one alternative to reach there. To export the goods and product from air is expensive. The export cost is very high due to high custom work, taxes, vat and the transfer cost is high. Only few wine beverages companies choose the Nepal as the market because it is hard to type in the marketplace. The legal procedure is very difficult for the alcoholic product. The rules and regulation is very strict for your wine industry. The custom duty fare is very high and the transfer and export guidelines legislation is very strict and hard to follow so only few wines providers they choose Nepal as their target market. Nepal is one of the landlocked countries with big mountain and hills where the environment change is regular and the environment transport get terminated frequently so summer season will be only best time so export the goods. So through the summer large quantity of Spanish wine is exported to Nepal. There are only few authorized stores of wine beverage of Nepal so that it is hard to find the marketplace place and hard to export the product due to this also the source process is very slow. However the demand of people is high but because of the climatic condition, credited to high transport cost, due to the strict guidelines and regulation about the export and import the source process is very difficult.

As a complete we can say that Spanish wines industry has got the large market on earth and considered as the third greatest country in producing the wine. The wine industry has got the traditional and historical importance still there are extensive wine industry which can be operate in the same way they used to 20 30 years back. If they can be modernized and if they adopt modern tools and equipment they can gain the current economic climate of the size and helps to direct the company in the path of success so the wine producer should should emphasis in the division of labour, should emphasis in modern technology this will help them to create the qualitative wine and really helps to compete in the market easily.

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