Global wine production falls, but consumption remains stable and exports increase

July 1, 2011
The FINANCIAL — Porto (Portugal), 20th of June 2011 — If the world lost about 0.8% of its vineyard surface during 2010 and wine production fell to 1998 levels (263.8 millions of hectolitres or Miohl), the wine sector can still rely on consumers: global wine consumption increased a 0.4% reaching 238 Miohl, thus breaking the trend downwards started in 2007. Among the top five wine markets, US, Germany and China are the ones fuelling this slight increase.

The previous is just an outline of the global wine sector portrait disclosed on Monday 20th June by Mr. Federico Castellucci, Director General of the International Organisation of Vine and Wine (OIV), which is the main intergovernmental scientific and technical organisation with an internationally recognised competence in the domains of vine, wine and other vine-derived products.

“After an uninterrupted period of growth since 2000, global wine exports registered the effects of the world economic crisis in 2008 and started a downward trend in 2009. However in 2010 the trend has shifted upwards and, the global volume of exported wines is still largely superior to that recorded in 2006 and the previous years” declared Mr. Castellucci.

Mr. Castellucci spoke at the official opening ceremony of the XXXIV World Congress of Vine and Wine, an event which is being held between the 20th and the 27th June in the Alfandega Congress Centre of Porto, in Portugal, and that will be followed immediately afterwards by the yearly OIV General Assembly.

The XXXIV World Congress of Vine and Wine has been organised under the supervision of the Portuguese Ministry for Agriculture, Rural Development and Fishing by “Um Porto Para o Mundo”, a private not-for-profit association created especially for this event which enjoys the full support of the OIV.

Worldwide report on the vine and wine sector

The “OIV report on the state of the vitiviniculture world market”, which will be made available shortly through the OIV website (www.oiv.int), offers an accurate picture of the main trends affecting the wine sector worldwide, dominated for a long time by European countries but now experiencing the challenge posed by the expanding wine industries in the Americas, Australia and Asia (specially China).

The report focuses on three main categories of indicators: surface area of world vineyards, grape production, and wine markets (production, consumption and international trade). Each one of these categories is used to rank the different countries which play a role in the wine industry regardless of their membership status in the OIV.

Concerning vineyards, the global surface area showed a regression in 2010 of 61.000 hectares from the previous year and stands at 7.586.000 hectares, which compare unfavourably with the 7.647.000 hectares of 2009. Spain, France and Italy head the statistics but all of them experience a decrease, while China, the US and Argentina see their vineyards expand.

After a slight increase in 2008 and a stabilization in 2009, the global grape production was marked by a 3% decrease in 2010 (reaching 644.9 million quintals) compared with 2009 (675.3 million quintals), and getting closer to 2007 levels (665.2 million quintals).

The global situation of this sector in 2010 also records an interruption of the upwards trend in wine production, which after an increase of 1.1 Miohl from 2008 to 2009, has been reduced in about 7.4 Miohl (-2,7%) from 2009 to 2010.

On the other hand, wine consumption recovers slightly from the global decrease of 3.6% recorded in 2009, growing from 236.5 Miohl consumed in 2009 to 238 Miohl consumed in 2010.

Mr. Castellucci also presented the evolution of global wine exchanges for 2010, which was marked by an increase of more than 7% in exports and 3.3% in imports, which represent a 6.2 Miohl and a 2.8 Miohl increase, respectively.

In view of the impact of the economic downturn on the wine industry, Mr. Castellucci recommended a continued commitment by Member States of the OIV to achieve the goals stated in the three-year Strategic Plan of the Organisation; the goals are aimed at minimising the negative impact of the global economic crisis on producers and consumers.

Source: http://finchannel.com/Main_News/Press_Releases/89217_Global_wine_production_falls,_but_consumption_remains_stable_and_exports_increase/

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Wine@Yats-International.com

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