The Chilian Wine Industry Essay

1268 WordsSep 28, 20126 Pages
The Chilean Wine Industry after the Earthquake The morning of Saturday, February 27th a devastating earthquake shook Chile. This tragedy reportedly evacuated up to two million people. Bridges and buildings collapsed, homes were lost, millions without power. It was the biggest earthquake in Chile for the past 50 years. This event is truly a devastating natural disaster which affected multiple areas within the supply chain network, especially in the Food and Beverage Industry of the wine making organizations. An estimated 125 million liters of wine from cracked vats, barrels and bottles spilled after the earthquake. Heavy damage to wineries and vineyards caused by one of the worst earthquakes in Chile's recent history has forced owners and export and import companies to suspend wine production and logistics operations. Wine production has taken a very important role in the Chilean economy for the last 15 to 20 years. Thus, this catastrophe caused important loss in wine and production capacity especially for the wine making industries within business sectors such as, manufacturing, export and imports, wholesalers and retailers. Manufacturing The earthquake’s impact was felt severely, especially, in Maule Valley where most of the Chilean wine production takes place. It damaged winery installation, major productions areas and infrastructure where wine is processed and produced. In an influential article, Preseemitteilungen (2010) expressed that “the impact on specific sectors such as the fruit production was hard, where grapes, pears, apples and blueberries were the most affected”. These are one the most typical fruits that different wine making organizations used to produce wine. Consequently, electricity played a huge role for producing and manufacturing wine. Franklin reported in his article (2010) that “Chile’s wineries are scrambling to find electrical generators

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