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Posted: Friday, 01 November 2019 15:06

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OIV: Estimates of World Wine Production in 2019 show Drop of 10%

Nov 01: After an exceptionally high wine production volume in 2018, the 2019 production, estimated at 263 mhl is back to the average level of recent years with the production being in line with the average of 2008-2019, according to Pau Roca, the Director General of the International Organisation of Vine and Wine (OIV) during the press conference held at the headquarters of OIV in Paris yesterday, reports Subhash Arora

2019 world wine production (excluding juices and musts) is estimated between 258 and 267 mhl, with mid-range estimation at 262.8 mhl. There is a drop of 10% in the vinified products compared to the previous year. Although this 30 mhl gap seems significant, this is in line with production levels observed in the period 2007 - 2016 (with the exception of 2013). After two consecutive years that can be defined as extremely volatile, 2019 brings wine production back to average levels.

In the European Union (EU)

Unfavourable weather conditions like frost and drought, significantly affected the production which was less than the average. The production volume evaluated at 156.0 mhl (representing 60% of the world production) is about 15% lower than the previous year. This is a significant decline of 26.7 mhl compared to 2018 production (182.7 mhl).

With a few exceptions, preliminary estimates for 2019 wine production are lower than average in the main EU countries. Compared with the exceptionally high volume of production in 2018, there is a drop of 15% in Italy (46.6 mhl), 15% in France (41.9 mhl) and 24% in Spain (34.3 mhl). This can be explained mainly by weather conditions, notably a very cold and rainy spring followed by an extremely hot and dry summer.

This decrease with respect to 2018 was recorded in most EU countries. However, while in Italy, France and Spain which  together account for 80% of the EU production,  is low not only with respect to 2018 but also compared to their last five-year average, other countries such as Germany (9.0 mhl, -12% /2018), Austria (2.6 mhl, -4%/2018), Romania (4.9 mhl, -4%/2018), and Hungary (3.2 mhl, -6%/2018) show production levels that are in line or even above their last five-year average.

Portugal, with 6.7 mhl in 2019, is the only EU country with a higher wine production than the previous year  with 10% increase over 2018  and 4% above its five-year average.

Northern hemisphere outside EU

Outside the EU, the 2019 wine production is high in countries such as Russia (6.0 mhl, +7%/2018) and Georgia (1.8 mhl, +1%/2018). Although lower than last year, the production volume in Switzerland (1.1 mhl, -6%/2018) is 10% larger than the average observed over the period 2014-2018.

The United States, which accounts for about 12% of northern hemisphere production, with a preliminary estimate at 23.6 mhl of wine production (-1%/2018), registers a high level of production for the fourth year in a row. This figure is based on forecasts on grape harvest, thus it could be significantly reviewed in the coming months when more information will be available.

Southern hemisphere

In the Southern hemisphere harvests ended in early 2019 and thus preliminary figures tend to be more accurate and reliable for this period of the year. The scenario is similar to that of the Northern hemisphere, with the wine production generally lower than the previous year but overall in line with the five-year average and representing about 20% of the world production.

South America is the region in the southern hemisphere that registers the sharpest decrease with respect to the high production of 2018. In Argentina, 2019 wine production is likely to decrease to 13.0 mhl (-10%/2018). Chile with 11.9 mhl records a 7% decline with respect to 2018 and an increase of 8% with respect to the last five-year average. Brazil, after two consecutive years above 3 mhl, has an estimated wine production volume of 2.9 mhl, more than 10% higher than its five-year average.

In South Africa, where drought significantly impacted the harvest, wine production is estimated at 9.7 mhl. It is the only major producing country that, for the second year in a row, records a lower than average production volume (-9% with respect to the five-year average).  

In Oceania, Australia registers a slight decline in wine production volume, here estimated at 12.5 mhl (-3% compared to 2018 but overall in line with its 5-year average). In New Zealand wine production registers for the fourth year

International Organisation of Vine and Wine (OIV) is a Paris-based UN styled body that has governmental members only in the areas of grapes, raisins and wines. India is also a unanimously elected member. It is the central body that collects all the information and disseminates it annually at the end of the harvest season at October-end. A few minor variations are expected and accepted. Although India is one of the top ten grape growing country in the world, the wine produced  is too miniscule for this Report.

Subhash Arora

 

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