|
As the unwanted stocks are diminishing, prices are
getting more steady, according to the Union, the largest
in the region, accounting for 60% of Bordeaux exports
and 66% per cent of domestic consumption. Reports of
a smaller volume harvest for 2007 are also fuelling
the increase..
Figures for August to July 2006/2007 showed a rise
in prices of 5.3%, and an increase in sales volumes
of 15%, the Union said.
The Union president Bernard Farges noted that this
was still a far cry from the €1000 minimum necessary
for profitability. A tonneau consists of 900 liters.
He also noted that arrachage (grubbing up of
vines) and crisis distillation measures had also played
a role in rebalancing the market.
The challenge now, he said, is to maintain the supply
and demand balance and not, as American pig farmers
tend to do, fall into another cycle where the shortages
are eventually followed by gluts.
Source: http://www.decanter.com/
|
