Examining the Business Case

Beyond the allure of winemaking and the pace of life spent nurturing and living on the land, lies the profitability and cost equation. Whether associated with a vineyard or winery, these essentials vary greatly depending on size of operation and from operator to operator. One thing is certain. It takes a significant financial investment.

Start-up vineyard investments can include a one-time cost per acre of $15,000 to $20,000, followed by annual vineyard expenditure of about $4,300 per acre. The sale price for grapes is based on three considerations: quality, sugar content (or brix) and variety. In Nova Scotia, hybrids sell for about $1,200/tonne and Vinifera for about $2,000/tonne. Mature vineyards (at least five years old) yield 2-4 tonnes per acre.

The good news is that Nova Scotia has vast expanses of farmland yet to be explored for winegrowing, and the per acre cost in Nova Scotia is a fraction of that in other regions.

Business Planning and Economics of Wine Grape Production