Published: Fri, October 27, 2017
Global Media | By Abel Hampton

Global wine production to hit 50-year low

Global wine production to hit 50-year low

It's all thanks to the weather.

It said by the end of the year world wine production is likely to reach 246.7 millions of hectolitres (mhl) - an 8% drop compared with 2016 and one of the lowest levels for several decades.

The forecast is especially bad for lovers of Chianti and Prosecco.

The world's top three wine producers - Italy, France, and Spain - could see some of the sharpest declines.

An even higher level of production was recorded in the United States (23.3 mhl). With an estimated wine production of 5.3 mhl, up 64% over 2016, Romania ranks 13th among world wine producers.

Total world output is projected to fall 8% from a year ago to about 247 million hectolitres.

The European Commission, the EU's executive, estimates the bloc's wine grape harvest will shrink to a 36-year low in 2017 as adverse weather from spring frosts and summer heatwaves takes its toll.

Rupert Millar, fine wine editor of industry journal The Drinks Business, said that France is facing its worst harvest since 1945.

US wine production levels were down marginally, about one percent from a year ago.

However, the impact of reduced production on actual market supply and prices depends on levels of stocks from previous years and the quality of wine in landmark regions.

A rise of 6% is expected in Australia, while in Argentina, a jump of 25% could be on the cards.

"Wine makers are gonna kind of wait and see before they make any actions and it's also very important to keep in mind that brand owners will be very reluctant to pass on pricing increases for one-off vintage". This in turn "could raise prices and dissipate a global surplus caused by a demand slump in the wake of the financial crisis", says the BBC.

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