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Uncorking success: an analysis of revenue determinants in the Italian wine sector across farm sizes

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  • Elena Perucchini,
  • Chiara Mazzocchi,
  • Stefano Corsi
Elena Perucchini
Department of Agricultural and Environmental Science (DISAA), University of Milan Via G.Celoria 2, 20133, Milan, Italy
DOI: https://doi.org/10.36253/wep-17000

Published 2025-05-20

Keywords

  • Italian wine farms,
  • profitability drivers,
  • economic size,
  • random-effect regression model

How to Cite

Perucchini, E., Mazzocchi, C., & Corsi, S. (2025). Uncorking success: an analysis of revenue determinants in the Italian wine sector across farm sizes. Wine Economics and Policy. https://doi.org/10.36253/wep-17000

Copyright (c) 2024 Elena Perucchini, Chiara Mazzocchi, Stefano Corsi

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Over the past few decades, Italy's wine industry has shifted from producing low-value, local wines to a modern sector that meets both domestic and international demand, with exports reaching €8 billion in 2023, second only to France. Despite these achievements, the sector faces challenges such as rising production costs, climate change, and a need for enhanced sustainability, particularly affecting small and medium-sized enterprises (SMEs). This paper investigates the key determinants of profitability across different farm sizes within the Italian wine sector, emphasizing the role of farm size in shaping financial performance. Using data from the RICA database (2008-2021), the study employs a random-effects regression model to assess the impact of various structural, management, and control variables on wine farm revenues. Findings highlight that large farms benefit more from mechanization, diversification, and the production of processed products, whereas small farms see greater gains from organic farming, direct sales, and agritourism. Furthermore, younger entrepreneurs positively affect small farms, while ownership of land has a negative impact on revenues across all farm sizes. EU subsidies consistently enhance revenues for all farm sizes, with a stronger effect for smaller farms. The study concludes that tailored management strategies, access to financial support, and regional specificities (such as mountainous areas) are crucial for enhancing the profitability and resilience of wine businesses in Italy, particularly small farms.

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