Global wine production hits lowest levels for 60 years
Global wine production slumped to to its lowest levels in 60 years in 2017 due to poor weather conditions in Europe, according to the International Organisation of Vine and Wine (OIV).
Total wine production came to 250 million hectolitres last year, a drop of 8.6% from 2016, according to data from the Paris-based organisation. This is the lowest level since 1957 when it dropped to 173.8 million hectolitres, said the OIV.
Harsh weather took its toll in Europe last year, with widespread frosts, droughts and storms in France and Italy hitting crops hard, and leading to an overall fall in the EU of 14.6% to 141 million hectolitres.
Italian wine production fell 17% last year to 42.5million hectolitres, French output was down by 19% at 36.7 million hectolitres, and Spanish production dropped by 20% to 32.1 million hectolites.
By contrast, production in the US, the world’s fourth largest producer remained pretty stable, while output in Chile, which has become the world’s seventh largest producer behind Argentina and Australia, was also on an even keel.
However, the rest of Latin America saw mixed fortunes, with Argentina, the world's sixth largest producer posting a 25% increase in production after a very small harvest in 2016, while Chilean volumes dipped by 6%. Furthermore, the OIV predicts that Argentina will see its production rise 14.2% to 13.5-million hectolitres, while . Chile is set to see a 19% rise to 11.3-million hectolitres. Australia, the world’s fifth producer, will, however, see its production dip 8.7% to 12.5-million hectolitres.
South African production is also forecast to slump by over 20% this year as producers grapple to cope with the drought which has seen the Western Cape region has going without significant rains for more than three years, forcing South Africa's second city to slash residential water consumption.
Despite the drop in production, consumption levels inched up last year to around 243 million hectlitres, a 1.8% increase on the previous year. The US was the world’s largest consumer of wine with 32.6 million hectolitres, followed by France with 27 million hecolitres.
And Chinese wine consumption grew significantly for the third year in a row, up by 3.5% to 17.9 million hectolitres.
As for the export market, Spain retained its position as the number one exporter by volume, with a global market share of over 20%. France hung onto its leading position as the number one exporter in value terms, with overseas shipments reaching $1bn last year.
Total global exports reached 107.9 million hectolitres last year, a 3.4% increase on 2016 and 30 billion euros in value, a rise of 4.8% on the previous year.
"The downturn in the consumption of historic consumer countries – France, Italy and Spain - appears to have stabilised, while the consumption of the United States, China and Australia continued to increase," said the OIV. t