Cypress Lane Estate: Human or Mechanical Harvesting?

Anthony Decker (name disguised at his request), director of farming at Cypress Lane Estate in Lake County, CA, was excited to harvest a newly developed 210-acre vineyard of sought-after Cabernet Sauvignon. This vineyard was expected to deliver Napa Valley-quality fruit at a fraction of the Napa Valley price. However, Decker approached the harvest with some trepidation, as increasing labor shortages were exerting financial pressure on vineyard operations, while the business was already hampered by narrow margins. Decker wondered how he could save on labor costs. Could mechanical farming reduce costs without damaging the quality of the fruit? This case explores the approximate scale at which financial benefits will be realized from long-term mechanical harvesting. Analysts can compare the costs of hand labor to machine labor, and assess the financial implications of either scenario, as well as identify the qualitative impacts. This case also discusses California’s ongoing wage legislation, agricultural overtime labor laws, and immigration issues.