Performance determinants of wine farms in the Western Cape: An interval modelling approach

Nakana E. ; Mkhabela T. (2011)

Article

This study identifies wine farm and owner characteristics that affect the performance of wine farms in three wine growing regions of the Western Cape, South Africa, using the interval regression approach based on a sample of 91 wine farms. Characteristics of wine farm owners found to impact significantly on wine farm performance include gender, age, and objectives. Wine farms attributes that were significant include the size of the farm, farm location, number of years that the farm has been bottling its own wine, restaurant on site, the type of wine produced, farm friendliness to disabled people, distance from the nearest urban centre, and total number of workers. The McFadden's pseudo-R2 is 0.1867, indicating that the predictors accounted for approximately 18.67 per cent of the variability in the latent outcome variable. The findings show that the performance of wine farms is influenced by both internal firm and entrepreneurial factors. © Agricultural Economics Association of South Africa.

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