Conditioning Pre-Plant Grapevines Using Controlled Environment Agriculture Can Reduce Vineyard Establishment Time

Background and goals The manipulation of supplemental light and environmental conditions in greenhouses has been shown to increase grapevine size and fruiting capacity prior to transplanting and presents an opportunity for advanced starter plant material. The goal of this study was to conduct an economic analysis on Precise Indoor Vine Conditioning (PIVC) as a proof-of-concept system to optimize nursery production of grapevines. Methods and key findings Research costs from a PIVC study were organized into a crop budget. Using net present value (NPV) and data from existing commercial crop budgets, we modeled the grower profitability of establishing a new vineyard with PIVC vines in three grape production systems in the United States. In addition, we calculated the price premium for a PIVC vine beyond the cost of a conventional starter vine and used sensitivity analysis (with research costs as an input) to identify the most promising avenues for increasing profitability of PIVC vine production for a nursery. NPV analysis revealed that variety and region have a strong impact on production system profitability and the use of PIVC vines can be more profitable than conventional systems for Cabernet Sauvignon in the San Joaquin and Napa Valleys, CA. The price premium a grower may be willing to pay for a PIVC vine beyond the cost of a conventional vine was 0. 52 to 7. 43 for Cabernet Sauvignon in the San Joaquin Valley and 6. 92 to 31. 18 in the Napa Valley. Conclusions and significance PIVC vines have the potential to reduce costs and increase returns for growers during the early years of vine establishment, thereby increasing profit. The PIVC system can also be profitable for grapevine nurseries with reductions in production costs that come at commercial scale and increased vine density.