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Posted: Tuesday, 10 November 2010 16:51

World Vine Acreage Continues to Decline

Nov 10: The global area under vine has gone down by approximately seventy thousand hA, mainly as a result of the decrease in vineyards in the European Union (EU), as well as the reduction in the area under vine in the southern Hemisphere (except South America) and the US, according to a Press Release from the Paris-based OIV yesterday.

The vineyards in the major wine producing countries -Spain, France, Italy and Portugal in the EU  have continued to decline due to the grubbing of vines carried out as part of the implementation of the CMO (Common Market Organisation), comments OIV.

The rate of growth for areas under vines in the Southern Hemisphere and the United States has slowed globally in comparison with previous years. Between 2009 and 2010, Australia, New Zealand and South Africa have experienced a decrease in their areas under vines. However, Argentina and Chile have recorded a slight growth compared to 2009.

“In comparison to 2009 production, world wine production in 2010 recorded a level of about 260 million hL, a fall of 10.7 million hL or about 4 %”, Mr Federico Castellucci, Director General of the OIV said. The OIV figures for 2010 relate to October-end.

Production in the wine making countries in the EU recorded a decline compared with the already modest production of 2009.Among the 3 largest European community producers, only Spain, with 35.1 million hL of wine production, remains stable. Despite a modest increase in the respective productions of Portugal, Greece and Bulgaria, the EU’s total production fell by 6% compared with 2009, and is thus recorded in the succession of the 4 low harvests from 2007 to 2010.

In 2010, all production in the Southern Hemisphere, the United States and Switzerland recorded a decrease of almost a million hL in comparison to 2009. This development reflects consistent developments worldwide: the USA recorded a marked reduction of 9.3 % in 2010. Similarly, production declined in Switzerland by 15% between 2009 and 2010. The falls recorded in 2010 in other countries in this group are between 7% and 9%, with the exception of Argentina, where wine production increased by a mind boggling 33% compared to the previous year.

Furthermore, the rate of growth for areas under vines in the Southern Hemisphere and the US has slowed globally in comparison with previous years. Indeed, between 2009 and 2010, Australia, New Zealand and South Africa have experienced a decrease in their areas under vines. However, Argentina and Chile have recorded a slight growth compared to 2009.

 ‘Ultimately, we must see whether the fall in production will have an effect on the price of wines. With regards world wine consumption, by observing its trend in the first quarter, it may be that it begins to increase again’, Mr Federico Castellucci said.
The International Organisation of Vine and Wine (OIV) is the global scientific and technical reference organisation for vines and related products. Created in 1924 and re-structured in 2001, it is an inter-governmental organisation currently with 44 States as members. Its objective is to standardise international vitiviniculture standards, encourage scientific innovations in the industry, and identify and help to resolve any issue pertaining to the global wine industry, through its recommendations and agreements by its Member States.

India has signed a Memorandum of Intention to be admitted as a member state. The formal application is expected to be made after the Ministry of External Affairs clears the pending proposal. OIV has shown keen interest in admitting India as a member keeping in view the future power it may wield in the world wine market.

However, as a policy, the request has to be circulated among all members, currently 44, for any objections, within six months. DelWine has learnt from reliable sources in MEA that the file has been signed or is about to be signed. Based on this, the IGPB is expected to send a formal application soon to the OIV. Traditionally, it first accepts the applicant as observers with no voting rights but India has been given the wild card and will be taken directly as the member after six- month waiting period.

Once India becomes a member of OIV, the production figures for India will also become a part of complilation, howsoever insignificant they might be.

Subhash Arora


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