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Ferreira, João Pedro & Ramos, Pedro & Cruz, Luís & Barata, Eduardo & Lahr, Michael L. (2018). From the Douro Valley to Oporto Cellars: the Port wine value chain. British Food Journal Retrieved from https://doi.org/doi:10.7282/T3FN19KD

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From the Douro Valley to Oporto Cellars: the Port wine value chain (2018)
João Pedro Ferreira, Pedro Ramos, Luís Cruz, Eduardo Barata, Michael L. Lahr
British Food Journal.
VersionAccepted Manuscript (AM)
AbstractPurpose
This paper aims to offer an insight into the fundamental changes taking place in Port wine production value chains. Specifically, we examine two distinct production regimes: when Port is aged and sold in the Greater Oporto and, alternatively, when it is produced, aged and sold in Douro.

Design/methodology/approach
The authors apply a tri-regional input-output model (Douro, Greater Oporto and Rest of the Country) for Portugal’s economy. This framework comprises a significant level of detail, with 431 products and 136 industries, the corresponding supply and demand for the products, by industry (for intermediate consumption) and final demand.

Findings
This study shows that the two regimes generate noteworthy, but quite heterogeneous, regional impacts. In both cases, the distribution of value added generates international and interregional trade flows. Moreover, the study reveals a greater capacity to capture national value added by getting the supply chain more intensive in localized services and by using state-of-the-art production techniques.

Originality/value
Using detailed regional data, we use disaggregated information, both for industries as well for territories, overcoming a common limitation in similar works that are grounded in international databases. Additionally, our approach integrates the trade interactions among industries and regions, which proves essential to uncovering spillovers resulting from the (direct and indirect) use of inputs from other regions and other countries.
Persistent URLhttps://doi.org/doi:10.7282/T3FN19KD
SubjectsPort wine, Value chain, Multiregional input-output analysis, MRIO, Portugal
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