April 26: Global wine output fell to its lowest level of 250 million hA in 60 years in 2017 due to poor weather conditions in the European Union that slashed production in the region, according to the figures released by the Secretary general of the Paris based international wine organisation OIV which says the lowest level was achieved 60 years ago when the production dipped to 173.8 million hL
According to the figures released on Tuesday by Director General of the OIV, Jean-Marie Aurand, wine production totalled 250 million hectolitres last year, down 8.6 percent from 2016. It is the lowest level since 1957, when it had fallen to 173.8 million hectolitres, the OIV reported. A hectolitre represents 100 liters, or the equivalent of 133.33 standard 750 ML wine bottles.
All top wine producers in the EU have been hit by harsh weather last year, which lead to an overall fall in the bloc of 14.6 percent to 141 million hectolitres.
The OIV’s projections, which exclude juice and must put Italian wine production down 17 percent at 42.5 million hectoliters, French output down 19 percent at 36.7 million hL and Spanish production down 20 percent at 32.1 million hL.
The French government said last year production had hit a record low due to a series of poor weather conditions including spring frosts, drought and storms that affected most of the main growing regions including Bordeaux and Champagne. Several areas of Italy and Spain were hit very badly exactly a year ago too, in fact-some areas losing 50-100% of their crops due to frost and later suffered from bad weather as well.
In contrast, production remained nearly stable in the United States, the world’s fourth largest producer, and China, which has become the world’s seventh largest wine producer behind Australia and Argentina.
Production has rebounded in Argentina and Brazil after El Niño hit in 2016, but Chilean production declined for the second year in a row.
Some of the other highlights of the figures:
- With 7.6 million hA in 2017, the size of the global area under vines appears to have stabilised.
- A total of 243 million hL of wines were consumed in 2017. Consumption had almost stabilised following the 2008 economic crisis, with a positive trend over the past 3 years.
- There was a very positive balance in world wine trade, both in terms of volume (108 mhL, +3.4% compared with 2016) and value (€30 billion, an increase of 4.8% compared with 2016), says the Press Release.
The price of the low end wines is expected to increase this year with Australia benefitting the most.One may not see any shortages in the supermarkets or restaurants though prices may be a tad higher. Australia is expected to benefits from this short supply due to increased sales in their bulk wines which are booming in sales due to the shortage globally.
India is too insignificant in the world wine scenario but the sales did not increase significantly (around 5-10%) according to the first reports, but primarily due to government related issues. But the prices of imported wines are expected to rise by 3-10% in the coming year.
Subhash Arora
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