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Posted: Thursday, 26 October 2017 18:07

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OIV: Lowest Global Wine Production in 2017 since 1961

Oct 26: During the conventional annual press conference held at the Paris headquarters of the International Organisation of Vine and Wine (OIV), the Director General, Jean-Marie Aurand presented the initial estimates of the world-wine production, saying there would be a drop of over 8% compared to last year, making it the lowest production since 1961 citing a huge drop in production in Europe due to the vagaries of nature

Click For Large ViewThe global vintage is expected to drop 8.2 per cent to 246.7 million hL. To put things in perspective, this means a drop of 3 billion bottles!

His has been primarily due to the historically lowest production in Western Europe due to unfavourable climate conditions, opined Aurand. Despite maintain its position as the top global producer, Italy recorded historically its lowest production levels at (39.3 million hL). France (36.7 million hL) and Spain (33.5 million hL) were also down, seeing 33%, 19% and 15% drop resp.   Germany at 8.1 million hL and Greece at 2.4 million hL, both recorded lower production by 10%.

Click For Large ViewPortugal (6.6 million hL), Romania (5.3 million hL), Hungary (2.9 million hL) and Austria (2.4 million hL) were the only European countries to see a rise compared with 2016.

The United States, with 23.3 million hL vinified (lower by 1%than 2016), saw a high level of production for the second year running. Aurand clarified that this estimated wine production was based on USDA forecasts for grape production, relating especially to wine grapes, from August 2017 and did not therefore take into account the potential consequences of the recent fires in California. However, OIV feels the loss might be negligible Click For Large Viewsince most people had harvested the grapes when the fires broke out.

South Africa (10.8 million hL) maintained its level of production. In South America, production increased compared with the low levels of 2016, particularly in Argentina (11.8 mullion hL) and Brazil (3.4 million hL).  Chile, 2017 production registered a decline with 9.5 million hL, equating to  a fall of  6% compared with an already low 2016 production.

In Oceania, the Australian production (13.9 million hL) increased while New Zealand production (2.9 million hL) maintained a decent level despite a slight decline. There was no 2017 data available for China, which produced 11.4 million hL in 2016, adds the Report.

Click For Large View"Logic dictates that for entry-level wine, there will be a bit more tension on prices," Aurand told reporters, "We're past the time where we had structural overproduction of wine; the market is more balanced now. Countries with large grape harvests, such as Australia and South Africa, will probably be more active in the wine trade this season,’ as he went on to say that the pressure would be more on the bulk wine market for prices as well.

Every year OIV holds a Press Conference at the headquarters in October-end to release the data for world production and consumption with the first estimates. Similarly, Data for bulk wines which account for around 40% of the world production is presented by OIV at the inauguration of the Conference at the World Bulk Wine Exhibition (WBWE) held in Amsterdam. This year, the 9th edition of the 2-day Exhibition will be organised on November 20-21 at Amsterdam RAI. The Conference will be on November 20 at noon.

For details of the Exhibition, visit www.bulkwineexhibition.com

The OIV is the intergovernmental organisation of a scientific and technical nature of recognised competence for its work concerning vines, wine, wine-based beverages, table grapes, raisins and other vine-based products. It is composed of 46 Member States that include India which became the 45th Member Country of the OIV in 2011 with all 44 OIV Member countries voting unanimously in favour of its entry.

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Subhash Arora

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