Just like art or investing in high-value jewellery and metals, there are also connoisseurs of wine. They collect and store quality wine bottles, hoping their value will rise with time. Wine collecting is a great way to invest, either due to a love for wine or to make money. Those wanting to go deeper into investments can purchase and invest in wine estates. Below is what to look for when buying a vineyard.
1.Grape varieties.
The type of grapes in a vineyard determines the quality of wine that will be produced. Each grape variety produces wine with distinct flavour, texture, sweetness, acidity, and taste characteristics. Grapes come into major categories, white and red, and each breaks down into various types. The grape variety will also greatly determine the grape market and the wine produced. You can research the grape variety best suited for you and then conduct a market analysis to determine the demand for your specific wine varieties.
The location of your vineyard should offer appropriate temperatures, rainfall, and sunlight that favour the cultivation of grapes. You can check for climate information online or ask the people in the location to ensure you make a well-informed decision. The location should also be close to the market to ease the transportation of the harvest, distribution of the produced wine, and farm inputs. If you want to purchase a winegrowing estate in France, you can talk to the French people and understand the performance of grapes in the region.
2. Availability of water
Grape cultivation requires constant watering to ensure the vines are healthy. This makes it essential to have a water reservoir in the vicinity, whether a dam, a river, or a well, to serve the vineyard. This will save you money when drilling water and purchasing storage facilities. Besides a reliable water source, the vineyard’s irrigation system should be well maintained without any leakages or blockages. You can even test the system before making a decision.
3. Vine health and age.
When it comes to other cash crops like coffee, the young plants are healthier and produce the most yields. However, in grape cultivation, it is the complete opposite. The older vines are healthier and produce less compared to younger vines, which are prone to pests and diseases. However, the younger vines produce more but are very costly to maintain in the first few years.
4.Extra financial aspects.
Consider the additional costs you might incur after the purchase. This includes operational costs, contracts with buyers and distributors, and debt. This makes it essential to have a business catering for about 5-7 years and accounting for seasons of lower productivity, replanting, contingency funds, and any changes needed. During the evaluation process, you should check for any extra costs you will incur to avoid surprises and making costly mistakes. You can seek help and advice from professionals like legal experts, agricultural accountants, and vineyard management consultants.
Before making a purchase, ensure you consult with vineyard real estate agents.
