Low volumes of wine production in South America and low output in the European Union after the coronavirus crisis sent sales sliding, have resulted in an international industry body making prediction of global wine production remaining below the five-year average fior the current year.
According to the International Organisation of Vine and Wine (OIV), its initial estimates for 2020 output for wine production for the world as pegged at between 253.9 million and 262.2 million hectolitres (mhl) and a middle level range estimate of 258 mhl.
The Paris-based organisation said that after achieving near record highs in 2018, global wine output has stayed below average in 2019 and 2020 will be the second consecutive year of lower than average global production of wine.
"This is not necessarily to be considered bad news for the wine sector, given the current context, where geopolitical tensions, climate change and the COVID-19 pandemic are generating a high degree of volatility and uncertainty in the global wine market," OIV said in a presentation.
OIV said that despite vineyards benefitting from good weather conditions this year in the European Union, wine producers and governments chose to limit production in or der to address the negative impact from the novel coronavirus pandemic which resulted in output remaining below average for the current year.
For example, champagne producers in France decided to reduce their grape collection by as much as 20 per cent for the current year as the industry tried to stage a recovery from the collapse in sales induced by the restrictions imposed because of the coronavirus crisis.
According to forecast by the OIV, total wine production of the EU member states, that includes the three largest wine producers of the world - Italy, France and Spain – will be at 159 mhl, which would be 5 per cent higher than the production last year but would still remain below the long term average.
133 standard bottles are manufactured from one hectolitre.
OIV said that it expects to note an 8 per cent drop year on year in production of wine in the total year from the producers in the Southern hemisphere at 49 mhl. This would primarily be because of sharp decline in wine output in Argentina which is expected to record a 17 per cent year on year decline, Chile reporting a 13 per cent year on year fall and Australian output reducing by 11 per cent year on year.
OIV expects to see a one per cent year on year growth in wine production in the United States for the entire year according to its preliminary estimates which would be at 24.7 mhl. The organization said that this forecast could be revised based on more information on the impact of the wildfires in the Napa and Sonoma regions emerges in the coming months.
(Source:www.investing.com)
According to the International Organisation of Vine and Wine (OIV), its initial estimates for 2020 output for wine production for the world as pegged at between 253.9 million and 262.2 million hectolitres (mhl) and a middle level range estimate of 258 mhl.
The Paris-based organisation said that after achieving near record highs in 2018, global wine output has stayed below average in 2019 and 2020 will be the second consecutive year of lower than average global production of wine.
"This is not necessarily to be considered bad news for the wine sector, given the current context, where geopolitical tensions, climate change and the COVID-19 pandemic are generating a high degree of volatility and uncertainty in the global wine market," OIV said in a presentation.
OIV said that despite vineyards benefitting from good weather conditions this year in the European Union, wine producers and governments chose to limit production in or der to address the negative impact from the novel coronavirus pandemic which resulted in output remaining below average for the current year.
For example, champagne producers in France decided to reduce their grape collection by as much as 20 per cent for the current year as the industry tried to stage a recovery from the collapse in sales induced by the restrictions imposed because of the coronavirus crisis.
According to forecast by the OIV, total wine production of the EU member states, that includes the three largest wine producers of the world - Italy, France and Spain – will be at 159 mhl, which would be 5 per cent higher than the production last year but would still remain below the long term average.
133 standard bottles are manufactured from one hectolitre.
OIV said that it expects to note an 8 per cent drop year on year in production of wine in the total year from the producers in the Southern hemisphere at 49 mhl. This would primarily be because of sharp decline in wine output in Argentina which is expected to record a 17 per cent year on year decline, Chile reporting a 13 per cent year on year fall and Australian output reducing by 11 per cent year on year.
OIV expects to see a one per cent year on year growth in wine production in the United States for the entire year according to its preliminary estimates which would be at 24.7 mhl. The organization said that this forecast could be revised based on more information on the impact of the wildfires in the Napa and Sonoma regions emerges in the coming months.
(Source:www.investing.com)
