Why when frost and hail strike the whole wine industry suffers
By Richard Siddle
For many wine producers in the northern hemisphere 2017 is sadly already turning in to a sequel of Groundhog Day. Having suffered awful weather in 2016 which saw parts of Burgundy, Chablis the Loire and other key French wine growing regions lose over half their annual crop due to fierce frosts and floods, the very same thing is happening all over again this year.
Only this time more regions in the south are being hit as well with both Bordeaux and areas of the Languedoc, which has not had suffered frost damage since 1988, also counting the cost of the weather.
Then there is Italy which has also seen violent hail storms and frost taking its toll. Estimates of damage are always hard to quantify in the early days after a storm but Barolo predicts it could be around 20% damage, whilst other regions, that faced the brunt of the hail, are fearing losses of between 40% to 80%.
The only saving grace for some producers this time round was the fact the cold snap was expected and producers have been able to take some steps to protect their vines. Lanterns and fires have been lit across hundreds of hectares of vineyards both in France and Northern Italy, whilst helicopters have taken to the skies to try and push the frozen air away from the vines and to protect the young growing buds.
Their actions have helped save thousands of vines and it is too early to really know the damage but once again producers are having to go through sleepless nights with their frost radars at the ready.
But the fact it is the second year in a row that they are having to deal with such devastating changes in the weather highlights, if it need highlighting, how vulnerable the global supply chain of wine is.
2016 really was the world’s annus horriblis when it came to bad weather. Not only were large parts of northern Europe hit badly but vineyards across the world had to face up to their own weather difficulties, some more damaging than others. Be it in Chile to Argentina to South Africa, California, Australia and New Zealand there were combinations of frosts, floods, fires, through to months of drought. All doing their own version of damage to the vines.
Overall it means there is simply less wine to go around. Estimates vary for the total loss with some claiming a total global shortfall of over 10% in 2015. Whilst producers can normally cope with one bad year by dipping in to reserves from bumper years, few can take back to back production losses without there being some real impact on the bottom line.
How much of this is down to bad luck and how much is due to long term climate change is clearly open to debate, but what is clear vines are changing the world over how they behave. Buds are breaking earlier, grapes are ripening quicker and the impact of sunlight on unprotected grapes is arguably having a bigger effect than ever before.
For some parts of the world climate change seems very real. Take the Loire and appellations like Montlouis. It is facing up to another bad year on the back of up to 70% losses in 2016. The region has now had three of its last five crops badly hit by frosts.
Producers are now being forced to take more steps than normal to protect their crops. Some at great cost. It is thought, for example, that it costs around $220 to hire a helicopter to protect just one hectare of vines in France. If you don't have access to a helicopter then an article in Wine Spectator this week estimates it could cost up to $2,170 per hectare in candles to protect the buds and grapes.
It explains how one Loire producer, Jacky Blot, owner of La Taille aux Loups in Montlouis, has even spent close to $100,000 on buying three portable wind turbines that you turn on when temperatures hit 35°. As each turbine costs $32,500 you have to be sure it is worth the investment.
It all means producers and buyers are already on the back foot when it comes to planning ahead. Taking more confidence out of the market at just the time it needs it.
The pressure was all there to see at this year’s Prowein with producers trying to stretch resources and meet buyer demands for certain grape varieties.
With less volumes of wine to be bought it has pushed up basic grape and bulk prices which, in turn, has a knock-on effect on both the producer countries and in the buyer markets.
The big fear for those producers that are continuously being hit by frosts, hail, rain and floods is that whilst there is initial sympathy for their plight, this is a cut throat business, and buyers will just move on to the next producer that can provide them with the grapes and volumes they need.
But when it comes to the weather, no-one is immune and it is worth reflecting on the damage that has been done this week in the northern hemisphere and look again at the lessons that can be learnt for producers and their relationships with their buyers the world over.