I have written about this before. Interest rates are plunging and savers, especially in Britain and Europe, are faced with extremely low interests rates on their bank accounts. The stock market in the UK is also taking a bit of a battering especially the FTSE 250. The annuity rates on pensions are also taking a battering.
You may be tempted to invest in wine instead for your old age. Please read my previous blogs if you are tempted. Do not fall for the cold caller who promises you wonderful capital gains on a wine investment account. Check out the bona fide of a trader before you invest. Only trade with a reputable and well established trader. Always remember that a higher rate of return represents a higher risk.
This is true of any investment. If a wine deal is promising higher rates of return than a reputable and well established trader then your risk of losing both your money and your wine is much higher.
Thursday, 11 August 2016
The trouble with organic farming
Many wine producers in France are turning to organic or bio-dynamic farming methods. There are some fabulous wines produced from organic wines and there are some not so fabulous.
Organic wine production can be very profitable especially as there is a trend for some drinkers to prefer only organically produced wines and these drinkers are prepared to pay a premium.
I am not so certain that organically produced wines always taste better: but organic wine production can hold its own in a niche market.
Organic farming holds many dangers fro wine producers. This year, in the Burgundy region of France there has been a severe problem with mildew destroying the crops owing to heavy rainfall and high temperatures providing excellent conditions for the breeding of mildew spores. There is very little that organic farmers can do to prevent mildew other than ensuring that their vines are well ventilated. If the farmer resorts to chemical means to prevent mildew then he loses his organic "licence" for three years. There is a difficult investment decision to make.
The mildew problem in Burgundy comes on top the problems that wine producers in the north of the region were faced with, in May, when thousands of hectares of vines were severely affect by intense hail storms. There is precious little that farmers can do to protect themselves from the vagaries of the weather. Hundreds of wine growers in Burgundy and other regions of France will see their profits diminish.
Organic wine production can be very profitable especially as there is a trend for some drinkers to prefer only organically produced wines and these drinkers are prepared to pay a premium.
I am not so certain that organically produced wines always taste better: but organic wine production can hold its own in a niche market.
Organic farming holds many dangers fro wine producers. This year, in the Burgundy region of France there has been a severe problem with mildew destroying the crops owing to heavy rainfall and high temperatures providing excellent conditions for the breeding of mildew spores. There is very little that organic farmers can do to prevent mildew other than ensuring that their vines are well ventilated. If the farmer resorts to chemical means to prevent mildew then he loses his organic "licence" for three years. There is a difficult investment decision to make.
The mildew problem in Burgundy comes on top the problems that wine producers in the north of the region were faced with, in May, when thousands of hectares of vines were severely affect by intense hail storms. There is precious little that farmers can do to protect themselves from the vagaries of the weather. Hundreds of wine growers in Burgundy and other regions of France will see their profits diminish.
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