The wine industry as a tool for socioeconomic development in the Vale do São Francisco, Brazil : prospects and possibilities

Abstract

Developing countries are commonly known for economic dependence on raw commodities sold at low and fluctuating prices. For this reason, the concept of selling value-added commodities with higher profit margins seems favourable for development. This thesis looks at value-added agricultural commodities, specifically the wine industry, and its impacts on socioeconomic development in the Vale do São Francisco, Northeast Brazil. A combination of primary and secondary research was conducted for this paper. Qualitative interviews with twelve stakeholders in the Northeast Brazilian wine industry were interviewed and five local vineyards were visited out of a total of six currently in the region. Articles by academic and non-academic sources were reviewed to supplement field data, on issues such as: the challenges wine makers face and the obstacles those wishing to enter the market face, potentials of value- added products in developing countries, viticulture in Brazil, and geographically specific challenges and benefits/successes of this industry in Brazil. The research focuses on domestic wine production and consumption within Brazil. Based on the data, it appears that pursuing a value-added wine industry in the Northeast of Brazil is favourable for development, and the region could benefit greatly from an expanded and developed regional wine tourism industry. This paper hints towards future research of other value-added products and their potential to improve development in other developing countries.