Global wine production fell to its lowest level in six decades

The world production of camedisturbed by different Meteorological phenomenafell 10% in 2023, hitting a minimum since 1961, and consumption fell 3%, the international organization of the sector, OIV, indicated on Thursday.

Winegrowers around the world produced a total of 237 million hectoliters, their lowest harvest since 1961.

According to the International Organization of Vine and Wine, harvests were particularly weak in Italy, where they were reduced by 23% compared to 2022, standing at 38 million hectoliters; and in Spain, where there was a drop of 21%, to 28 million hectoliters.

The fall in world production is a direct consequence of “extreme environmental conditions” which included droughts or floods, heat waves or early frosts and fires, and affected both the northern and southern hemispheres, OIV director John Barker told the press.

Thus, the harvest fell by 11% in Chile, Australia and 10% in South Africa, the three largest producers in the southern hemisphere.

Argentina registered a drop of 23%, reaching its lowest level since 1957, due to spring frosts and hail; while in Brazil wine production increased by 12.1% compared to 2022 and 31.4% compared to the average of the last five years.

With the harvests almost over, production in the southern hemisphere is expected to rebound by 5% in 2024, according to the first estimates from the OIV.

The OIV had already anticipated a drop in production in an estimate released in November, but a smaller one (between 241.7 and 246.6 million hectoliters).

On the other hand, in France the harvest grew by 4%, to 48 million hectoliters, and it became the largest producer.

The lowest consumption since 1996

For its part, consumption fell 3% last year, to 221 million hectoliters, its lowest level since 1996.

Spain was one of the few markets in which wine consumption did not decrease in 2023, with total consumption of 9.8 million hectoliters, 1.7% more than in 2022.

In South America, consumption fell in Argentina by 6.2%, its lowest level in recent history, but in Brazil it increased by 11.6%, recovering 2020-2021 levels.

The downward trend has been dragging on since 2018, except for the rebound in 2021 due to the lifting of the main restrictions linked to covid-19, and is partly due to inflation, which caused production costs and retail prices to increase. consumption. In China, hit by an economic slowdown, wine consumption plummeted 25%.

This lower demand is also due “to demographic changes and lifestyle changes” of the people, admitted John Barker.

The Portuguese, French and Italians are, per capita, the largest consumers.

Wine exports fell 6% in volume, reaching their lowest level since 2010.

According to the OIV, perhaps what deterred buyers was the average export price, which rose to 3.62 euros (about US$3.87) per liter, a record and 29% more than in 2020.

Less surface area

The area dedicated to vineyards, whether for the production of wine or table grapes, decreased by 0.5% for the third consecutive year in 2023, to 7.2 million hectares.

In Spain, the largest vineyard in the world, with 945,000 hectares, the surface area decreased by 1%, as did it in Argentina (1.1%) and Chile (5.6%).

Brazil, however, increased its area for the third consecutive year, up to 83,000 hectares, 1.5% more than in 2022.

In India, the surface area also increased, by 3%, and the country entered the ranking of the 10 largest vineyards in the world.

In the case of Italy, which recorded its lowest production since 1950, this decline is not expected to lead to mass abandonment of vineyards, according to John Barker.

With the rains, which favored the appearance of the mildew fungus in the central and southern regions; hail and floods, fall “It was clearly related to the weather conditions”so in principle it should be momentary, Barker said.

The problems that affected the vineyard this year are disparate and the influence of climate change has not been demonstrated in all cases.

Phenomena such as the waterproofing of soils in Italy, due to construction, could have aggravated the consequences of the rain.

With everything, “Currently, the biggest challenge for the sector is climate change“, well “severely affects the vineyard, a perennial plant that is usually grown in vulnerable areas” to global warming, highlighted the director of the OIV.