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ECONOMICS OF GRAPE AND WINE ISSUES Specialist in Cooperative Extension (100% CE) Department of Agricultural and Resource Economics, UC Davis Position Description: This new UCCE Specialist position will focus on the economics of grapes and wine. The scope will encompass all end-uses of grapes, including table grapes, raisins, and juice products, as well as wine; and the entire value chain, including the natural, environmental and human resources used in production, as well as vineyards, processors, packers, and wineries, right through to the final consumer. It will cover economic and policy issues that arise including aspects of resources and the environment (such as policies related to the use of land, water, and labor); production (such as issues related to pest-management, varietal improvement and other innovations, and adaptation to climate change); marketing and trade (including work to understand the roles of international trade and policy and the rise of new world competitors in Asia and South America); and policy (including regulations over production and marketing of wine, and taxation of alcohol). While the position will focus on wine and grape issues, some of the issues that arise are directly pertinent to other agricultural industries in California, especially other perennial crops such as tree fruits and nuts, and, as appropriate, the incumbent would also be expected over time to contribute applied research and outreach to these other industries. This economist will work in a multidisciplinary fashion, with faculty from the Departments of Viticulture and Enology, Land, Air, and Water Resources, and Plant Sciences, and other experts from a range of disciplines with diverse expertise, as well as with other economists from the Department of Agricultural and Resource Economics (ARE) and elsewhere that are more specialized within the economics discipline in particular issues (such as environmental economics agricultural policy, or marketing). The position will require a Ph.D. in agricultural economics, economics, agribusiness, or a related field and will be housed in the Department of ARE at UC Davis. Justification: Grapes are the highest valued crop and the second-highest valued agricultural output (after dairy) in California, with production worth $3.0 billion in 2010. Further, the industry generates substantial additional value in California through the production of high-value consumer products, tourism, and related activities. The grape and wine industry is an iconic emblem of California, but the economic and environmental sustainability and growth of this industry face various challenges including (1) competition for resources from other segments of California agriculture, by urban development, and from demand by the broader community for the use of resources for environmental purposes; (2) competition for markets with increasingly powerful newworld competitors amidst boom and bust cycles in the markets for wine, grapes, and raisins; (3) an ever-changing regulatory and policy environment; and (4) requirements for improved technologies to address chronic, evolving and newly emerging pest and disease threats, to adapt to a changing climate, and to satisfy an ever-changing consumer demand for new, safer, more varied and cheaper products. The economic research and outreach needs of this critical industry are not being met satisfactorily by existing UC Senate faculty and CE Specialists, and the capacity in this area has been shrinking and is expected to shrink farther with impending retirements in the next few years. Support for work in this area is reflected in support provided by the National Grape and Wine Initiative (NGWI), California Association of Winegrape Growers (CAWG) and other organizations, including the California Department of Food and Agriculture (CDFA) and the U.S. Department of Agriculture for applied economics research related to grapes and wine. Extension: Activities Work closely with other campus faculty and county advisors to bring specific knowledge and expertise to research and extension programs Work closely with clientele groups to identify important current and emerging issues that require research-based knowledge and information Develop a strong reputation for objectivity and expertise in order to be a crucial resource to policy makers and advisors on all public grape and wine issues, including taxation, health, environmental concerns, and international trade Extension: Clientele Groups Industry organizations including the National Grape and Wine Initiative (NGWI), the California Association of Winegrape Growers (CAWG), The Wine Institute, various local and regional grape and wine promotion boards, the American Vineyard Foundation, the California Table Grape Commission; the Raisin Administrative Committee, California Raisin Marketing Board, Raisin Bargaining Association California governmental bodies such as CDFA, Air Resources Board, Water Control Districts, Department of Pesticide Regulation, and CalEPA. Research: The key Research Questions this position can address include analysis of: Costs and returns in the industry, including pricing of land and other assets The competitiveness of California winegrapes, table grapes, and raisins for land and water in relation to other crops and nonagricultural uses Costs and benefits of technological changes in grape production, including drying on the vine (for raisins), mechanical harvesting and other mechanical innovations, information technologies, varietal innovations, and in winemaking Implications of climate change for the California grape and wine industry, and the potential for adoption of innovations to adapt to an evolving climate Economics of pest and disease management and the related technologies and regulations, including chronic pests and diseases such as powdery mildew and invasive species such as the glassy-winged sharpshooter Effectiveness of commodity promotion programs and other industry “collective action” programs such as industry-funded R&D and issues management Market developments including potential for domestic and export market growth for California raisins, table grapes, and wine, and the role of import competition Impacts of international trade for production and prices of table grapes, raisins, and bulk and premium wine in California Social and economic costs of wine consumption through public health impacts The economics of regulations over the production, marketing, trade, and consumption of wine, including issues such as geographic appellation and internet 2 wine sales, and regulations and taxes applied to consumption or production Examples of Publication Outlets include Research: peer-reviewed journals such as California Agriculture, American Journal of Agricultural Economics, Journal of Wine Economics, American Journal of Viticulture and Enology, as well as Outreach: California Agriculture, ARE Update, Choices, Western Economic Forum, Wines and Vines, UC AIC Issues Briefs, Special reports from CAWG and industry and other stakeholder groups, Web-based publications ANR Continuum: Presently no one is filling the crucial role linking applied research and outreach, and economists are often asked to participate in a range of projects related to the economics of grapes and wine. The incumbent would be expected to work with: V&E faculty including Douglas Adams, Linda Bisson, Roger Boulton, Susan Ebeler, Matthew Fidelibus (Kearney), Hildegarde Heymann, James Lapsley, Mark Matthews, Anita Oberholster, David Smart, Andrew Walker, Andrew Waterhouse, James Wolpert UCD LAWR and Plant Sciences faculty including Toby O’Geen, Louise Jackson, Alan Bennett, Patrick Brown, Kent Bradford UCD ARE faculty who could contribute other specialist expertise to projects on economics of grapes and wine including Julian Alston, Colin Carter, Roberta Cook, Rachael Goodhue, Richard Howitt, Karen Klonsky, Travis Lybbert, Pierre Merel, Philip Martin, Richard Sexton, Daniel Sumner UCB and UCR ARE faculty who could contribute other specialist expertise to projects on economics of grapes and wine including David Zilberman, Gordon Rausser, David Sunding, Keith Knapp, Ariel Dinar CE county staff including Glenn McGourty, Rhonda Smith, Monica Cooper, Paul Verdegaal, Steve Vasquez, Larry Bettiga, Mark Bettany, Chuck Ingels, Janet Caprile Other programs on the UCD campus including UC Agricultural Issues Center, Small Farms Center, Sustainable Agriculture Program, Robert Mondavi Institute Support: This position will receive internal support from the ARE department and the Giannini Foundation of Agricultural Economics. The department will supply the usual office, administrative, and transportation support. The Giannini Foundation provides access to funding, graduate students, and the Foundation’s Outreach Coordinator. SunMaid Raisins supports the creation of this position so strongly, that they are willing to pledge $10,000.00 per year for the first four years to help fund this position. Other Support: Sources include USDA programs such as AFRI, and ERS cooperative agreements, Risk Management Agency education grants, CDFA cooperative agreements, and industry foundations and foundations such as Bechtel, Packard and Hewlett. Location: Location at Davis ARE enables the incumbent to have close contact and collaboration with the department’s other agricultural and resource economists (AES and UCCE) and talented cadre of graduate students. ARE houses computer services and 3 support staff necessary for economic research and outreach programs. Location on the Davis campus also provides proximity to colleagues in the Department of V&E. 4