Economy 5 tracks to manage your business after freezing in your vines

How to integrate a climatic hazard in production costs to maintain the financial balance of your business?

Michel Badier, wine advisor to the Chamber of Agriculture of Loir et Cher spoke of two approaches: the integration of a loss of harvest in production costs and the creation of a stock on the scale of the company.To illustrate his remarks, he presented several simulations obtained from the economic repository of the 2020/2024 winemaker at the webinar..For example (excluding marketing costs, excluding value creation and taxes)), the cost of production for a "normal" harvest at 55 hl/ha (or 7,333 bottles/ha)) amounts to € 1.98/L.If we incorporate a loss of harvest every 10 years, it goes to € 2.20/L.And at € 2.47/L for two harvest losses in 10 years.If we bring back to the price of the 75 cl bottle, the production cost for a "normal" harvest is € 2.55;of € 2.83 if we incorporate a loss of harvest every ten years and of € 3.18 if we join two harvest losses in ten years.

In the case of the constitution of a stock, the advisor took as hypothesis, the creation of a stock over 5 to 8 years which would cover 80 to 100 % of direct sales (or 800 hl for a production of 1,100HL)).He did not include in his calculations the tax constraints.In this case, for a stock constituted over 5 years, this corresponds to a volume of 160 hl/year.For a valuation at 300 €/hl it makes a fixed asset of € 48,000 that can represent 14 % of the turnover.For a stock constituted over 8 years, this corresponds to 100 hl/year, an immobilization of € 30,000 (for a valuation at € 300/HL)), or 10 % of the turnover.The question then arises in how to finance this stock and its warranty.

According to Michel Badier, the solution goes through a mix between the integration of harvest losses into production costs, the constitution of a stock, the implementation of a system for combating freezing and an insurance system."In terms of business management, these four solutions must be integrated".To help winegrowers reason with their strategies, the Loir and Cher Chamber of Agriculture has put the winemaker's repository online and a tool that allows personalized calculations.

En conséquence, comment construire sa grille tarifaire sur le marché français ?

Marie Refalo, from ODG Touraine explained that frost was an opportunity to put its price grid flat.For this, she recalled that the first thing to do was to calculate her net selling price.Two methods exist for this:

A lire aussiGros dégâtsUne longue vague de gel dévastatrice en Indre-et-Loire et Loir-et-CherEncore un peu d'espoirLes vignes gelées repartent très timidementLa méthode dite du marketing de l’offre ("Push")), dans laquelle on part du coût de production auquel on ajoute les coûts de vinification, de conditionnement et de stockage. On ajoute ensuite une marge commerciale intégrant les frais de vente, de marketing, de création de valeur. « Cette marge est généralement de 20 à 30 %, voire plus », a-t-elle expliqué. Selon elle cette méthode est utilisée par 80 % des vigneronsLa méthode du marketing de la demande ("Pull")) dans laquelle on part d’un prix du marché et où l’on déduit la marge distributeur… Attention toutefois à bien comparer le prix obtenu avec le coût de production pour ne pas vendre à perte. « La bonne démarche est de croiser les deux méthodes », a expliqué Marie Refalo

Once this calculation is carried out, a margin coefficient must be applied to net sale price, coefficient which is different depending on the distribution circuit.

Finally, she gave some bearings.For a production cost of € 2.55 excl. Tax, we arrive at a net price of net HT is 3.64 in the event that we apply 30 % of margin.For a production cost of € 3.18 excl. Tax, we arrive at a net price excluding tax of € 4.54 (always with a margin of 30 %)).We generally multiply the sale price by 2 to obtain the CONSO CAVIST price TTC;by 1.7 for the consumption price GD TTC;by 1.3 for the price sold at the HT restaurateur which will itself be multiplied by 4 to obtain the Cons Consuvant TTC which will be displayed on the restaurant map.

Be careful to respect a few rules: the sale price at the Caveau du Domaine must be the same as at the wine merchant,.Knowing that wine merchants generally want 40 % margin.Export prices are wine merchant prices."The consumer price is the key.It must be stable according to the distribution circuits, ”insisted Marie Refalo.It is therefore better to offer different vintages in GD and among wine merchants.Also be careful not to short-circuit the intermediate margins "it is important to have prices for the CHR and to sell at the price at which the wholesaler would sell it"

Faut-il communiquer auprès de ses clients en temps de crise ?

Yes."The context is unprecedented with a superposition of crisis: frost and covid.And communicating remains a priority, "insisted Marie Refalo, of the ODG Touraine, during the webinar.To illustrate her remarks, she recalled the results of a Kantar 2020 study on consumer behavior during the COVID crisis: only 8 % of them believe that brands should stop communicating during the crisis.Conversely, 67 % of consumers expect brands that they communicate on their usefulness, 62 % on the efforts they provide during the crisis and 46 % on their values.

According to her, it is imperative to keep in touch with customers, but without multiplying anxiety -provoking massages, nor moping.“In times of crisis, we must communicate with sobriety and humility;Have a sincere, generous and empathetic speech;Entertain its customers and change the subject by sharing a positive and dynamic image of your business, by presenting its innovations, its projects, its commitments to the environment ... "she detailed.

Comment créer et utiliser un budget de trésorerie pour les 18 mois à venir ?

Christophe Geoffroy, from the Loir and Dear Chamber of Agriculture insisted "the cash is the fuel of the company".According to him, it is therefore essential to make a cash budget months a month to control the company and anticipate the drops in revenue.For this, you must identify all the receipts (planned sales, customer receivables, bonuses and subsidies, etc.)) as well as disbursements (purchases of supplies, services, supplier debts, reimbursement of loans...)).

To facilitate this work, the room has prepared a tool that it will provide winegrowers on its site.

Comment évaluer l’équilibre financier de son entreprise ?

La Chambre d’Agriculture met aussi à disposition des viticulteurs un outil en ligne : CAE (Conseil d’analyse économique CAE)) qui permet d’analyser la robustesse financière de son entreprise face à un aléa climatique ou économique.The simulation is done in 10 to 15 minutes.But for that, you have to bring your latest accounting exercise.The result is in the form of a report of a few pages.The winegrower can then debrief the result with a company advisor in the room or his accountant.