🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

World wine output seen at 4-year low on French, S. America weather

Published 20/10/2016, 08:15 pm
© Reuters.  World wine output seen at 4-year low on French, S. America weather

PARIS, Oct 20 (Reuters) - Worldwide wine production is expected to fall this year to its lowest since 2012, chiefly due to adverse weather that sharply cut output in France and South America, wine body OIV estimated on Thursday.

Global wine output is set to decrease by 5 percent compared with last year to 259.5 million hectolitres (mhl), one of the three smallest volumes since 2000, the Paris-based International Organisation of Vine and Wine (OIV) said in preliminary estimates for this year.

An expected 12 percent drop in French production, to 41.9 mhl, and steep declines in Chile (-21 percent to 10.1 mhl), Argentina (-35 pct to 8.8 mhl) and Brazil (-50 pct to 1.4 mhl) accounted for most of the projected global fall, the OIV said.

South Africa was also expected to see a sharp decline in output, losing 19 percent to 9.1 mhl.

A hectolitre represents 100 litres, or the equivalent of just over 133 standard 75 cl wine bottles.

A plunge in French production has been widely anticipated after vineyards endured frost and hailstorms in spring and then drought during summer. smaller French output should allow Italy to maintain its position as the world's largest wine producer with an expected 48.8 mhl, although this would be slightly below an estimated 50.0 mhl last year, the OIV said.

Production in Spain was set to edge up 1 percent to 37.8 mhl, keeping it as the third-largest wine producer.

The United States would retain its fourth spot among wine producing countries, with output projected up 2 percent at 22.5 mhl, while growth was also expected in Australia (+5 pct to 12.5 mhl) and New Zealand (+34 pct to 3.1 mhl).

The OIV's initial global estimates lacked data from some countries, notably China for which it provisionally assumed stable production compared with last year at 11.5 mhl.

The headline worldwide production estimate of 259.5 mhl represented the midpoint of a working range of around 255 to 264 mhl, it said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.