News / Economy

World Wine Output Hit by Weather, EU Curbs

View of the Chateau de Laubade's vineyards in Sorbets, southwestern France, Aug. 24, 2012.
View of the Chateau de Laubade's vineyards in Sorbets, southwestern France, Aug. 24, 2012.
Reuters
​Global wine production fell sharply last year due to bad weather in Europe and a recent policy to drain its "wine lakes," while Chile and United States saw a jump in harvests, according to a report on Thursday.

A vineyard is seen along a road in Mendoza Feb. 1, 2013. Argentina is the world's 6th largest wine-producing country, according to the U.N.A vineyard is seen along a road in Mendoza Feb. 1, 2013. Argentina is the world's 6th largest wine-producing country, according to the U.N.
x
A vineyard is seen along a road in Mendoza Feb. 1, 2013. Argentina is the world's 6th largest wine-producing country, according to the U.N.
A vineyard is seen along a road in Mendoza Feb. 1, 2013. Argentina is the world's 6th largest wine-producing country, according to the U.N.
The International Organisation of Vine and Wine (OIV) said world production was down around 6 percent in 2012 at 251 million hectolitres (Mhl), a level it described as very low. European Union output fell 10 percent to 141 Mhl, with France suffering a drop of nearly 17 percent after a good harvest in 2011.

"We had a difficult year 2012, mainly because of a sharp drop in production, but trade flows mostly held stable," OIV Director General Federico Castellucci told reporters, referring to total wine exports which were stable at 101 Mhl after a long-term upward trend.

The EU policy of digging up vines to end years of surpluses had lead to a reduction of 269,000 hectares between 2008 and 2011, well above the targeted 175,000 hectares, contributing to a recent rise in prices, Castellucci said. Rising consumption also helped push prices up.

"This meant tightness on the market and we need to be careful because once a market is lost it is hard to conquer it back," he said, pointing to higher prices for bulk wines, used to make liquors such as brandy and vermouth or vinegar.

Prices for French bulk red wines gained seven percent between August and February, while bulk white wines rose 30 percent, data by French farm office FranceAgriMer showed.

A new configuration

A manager looks at wines at the Marco Polo restaurant at the Grand Intercontinental Hotel in the Gangnam area of Seoul, South Korea, Oct. 2, 2012.A manager looks at wines at the Marco Polo restaurant at the Grand Intercontinental Hotel in the Gangnam area of Seoul, South Korea, Oct. 2, 2012.
x
A manager looks at wines at the Marco Polo restaurant at the Grand Intercontinental Hotel in the Gangnam area of Seoul, South Korea, Oct. 2, 2012.
A manager looks at wines at the Marco Polo restaurant at the Grand Intercontinental Hotel in the Gangnam area of Seoul, South Korea, Oct. 2, 2012.
French exports rose six percent to 15 Mhl, but Italy and Spain, the world's two largest wine exporters by volume, which also had a poor crop although not as bad, saw their exports fall seven and 13 percent respectively to 21.5 and 19.1 Mhl.

Chile, the largest South American producer which had a record output in 2012, saw a 13 percent rise in exports to 7.5 Mhl. South African exports were up 17 percent to 4.2 Mhl, with sales to Britain jumping 50 percent.

This meant that the share of the top five European producers - Italy, Spain, France, Germany and Portugal - in world exports fell to 62 percent, from 65 percent last year, to the benefit of South America as well as the United States whose crop jumped seven percent last year, the OIV said.

Wine consumption increased 0.6 percent last year to 245 Mhl, mainly helped by China and the United States, the OIV said.

Chinese consumption rose nine percent to reach 17.8 Mhl, leading to a total rise in consumption since 2008 of 27 percent, with local output supplying the bulk of the additional demand. Imports only accounted to 0.3 Mhl of the 1.5 Mhl rise recorded in 2012.

"There is a slightly new configuration here. The Chinese start either to make the wine themselves or to import wine from countries where they have companies - it's still a small number but not minimal anymore," Castellucci added.

An increasing number of Chinese wine lovers have purchased French chateaux in the past years, keen to ship the wine home and turn their new properties into tourist resorts.

You May Like

Brutality Eroding IS Financial Support

Director of National Intelligence James Clapper says IS's penchant for publicizing beheadings, other brutal forms of punishment hurts group’s bottom line More

Studies: Climate Change a Factor in Disasters in Syria, California

The studies point to the possibility of clear and present dangers from a threat often considered to be far in the future More

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials and human rights organizations assert that Pakistani authorities are using deadly attack at school in Peshawar as pretext to push out Afghan refugees More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Kerry Seeks Assurances of Russian Non-Interference in Ukrainei
X
March 03, 2015 3:11 AM
U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Kerry Seeks Assurances of Russian Non-Interference in Ukraine

U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.
Video

Video Ukrainian Volunteers Prepare to Defend Mariupol

Despite the ongoing ceasefire in Ukraine, soldiers in the city of Mariupol fear that pro-Russian separatists may be getting ready to attack. The separatists must take or encircle the city if they wish to gain land access to Crimea, which was annexed by Russia early last year. But Ukrainian forces, many of them volunteers, say they are determined to defend it. Patrick Wells reports from Mariupol.
Video

Video Moscow Restaurants Suffer in Bad Economy, Look for Opportunity

As low oil prices and Western sanctions force Russia's economy into recession, thousands of Moscow restaurants are expected to close their doors. Restaurant owners face rents tied to foreign currency, while rising food prices mean Russians are spending less when they dine out. One entrepreneur in Moscow has started a dinner kit delivery service for those who want to cook at home to save money but not skimp on quality. VOA's Daniel Schearf reports.
Video

Video US, Cuba Report Progress in Latest Talks to Restore Ties

The United States and Cuba say they have made progress in the second round of talks on restoring diplomatic relations more than 50 years after breaking off ties. Delegations from both sides met in Washington on Friday to work on opening embassies in Havana and Washington and iron out key obstacles to historic change. VOA’s Mary Alice Salinas reports from the State Department.
Video

Video Presidential Hopefuls Battle for Conservative Hearts and Minds

One after another, presumptive Republican presidential contenders auditioned for conservative support this week at the Conservative Political Action Conference held outside Washington. The rhetoric was tough as a large field of potential candidates tried to woo conservative support with red-meat attacks on President Barack Obama and Democrats in Congress. VOA Political Columnist Jim Malone takes a look.
Video

Video NYC's Restaurant Week: An Economic Boom in Fine Dining

New Yorkers take pride in setting world trends — in fashion, the arts and fine dining. The city’s famous biannual Restaurant Week plays a significant role in a booming tourism industry that sustains 359,000 jobs and generates $61 billion in yearly revenue. VOA's Ramon Taylor reports.
Video

Video Brookhaven at Cutting Edge of US Energy Research

Issues like the Keystone XL pipeline, fracking and instability in the Middle East are driving debate in the U.S. about making America energy independent. Recently, the American Energy Innovation Council urged Congress and the White House to make expanded energy research a priority. One beneficiary of increased energy spending would be the Brookhaven National Lab, where clean, renewable, efficient energy is the goal. VOA's Bernard Shusman reports.
Video

Video Southern US Cities Preserve Civil Rights Heritage to Boost Tourism

There has been a surge of interest in the American civil rights movement of the 1950s and '60s, thanks in part to the Hollywood motion picture "Selma." Five decades later, communities in the South are embracing the dark chapters of their past with hopes of luring tourism dollars. VOA's Chris Simkins reports.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8907
JPY
USD
119.77
GBP
USD
0.6496
CAD
USD
1.2492
INR
USD
61.941

Rates may not be current.