World area under vines and wine production down except for Argentina

Source: Merco Press

11.10.2010

In 2010, the global area under vines is down by approximately 70 thousand hectares, mainly as a result of the decrease in vineyards in the European Union (EU), as well as the reduction in the area under vines in the southern Hemisphere (except South America) and the United States, reported OIV Tuesday in Paris.

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

Furthermore, the rate of growth for areas under vines in the Southern Hemisphere and the United States 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.

“In comparison to 2009 production, world wine production in 2010 recorded a level 10.7 million hectolitres (-4.0%) lower and is about 260 million hectolitres”, Mr Federico Castellucci, Director General of the OIV said.

Production from the EU major wine producing countries recorded a decline compared with the already modest production of 2009. Among the three largest European community producers, only Spain, with 35.1 million hectolitres of wine production, remains stable.

Despite a modest increase in the respective productions of Portugal, Greece and Bulgaria, the EU 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 hectolitres in comparison to 2009. This development reflects consistent developments worldwide: the USA recorded a marked reduction (-9.3 %) in 2010 wine production in comparison to the large production of 2009. Likewise, in Switzerland, production declined 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 33% compared to the previous year.

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.

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