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Portugal is the only EU country in which wine production increases in 2019
Economy
8 November 19
Portugal, with 6.7 Mhl in 2019, is the only EU country with a wine production above the previous year
Portugal, with 6.7 Mhl in 2019, is the only EU country with a wine production above the previous year (+ 10% / 2018) and above its five-year average (+ 4%) according to the first estimates released. today by the International Organization of Vine and Wine (OIV). The Portuguese exception stands out especially as this year's world production is expected to decline by 11% due to unfavourable weather conditions, from ice to drought, particularly in the three main producing countries, namely Italy, Spain and France. It should also be noted that after an exceptionally high world wine production volume in 2018, 2019 production, estimated at 263 mhl, is back to the average level of recent years. World Production Based on information collected on 28 countries, which represent 85% of the world production in 2018, 2019 world wine production (excluding juices and musts) is estimated between 258.3 and 267.3 mhl, with a mid-range estimation at 262.8 mhl. The 2019 vinified production drops by 10% compared to the previous year. Although this 30 mhl gap seems significant, the 2019 production level is in line with production levels observed in the period 2007-2016 (with the exception of 2013). After two consecutive years that can be defined as extremely volatile, 2019 brings wine production back to average levels. Northern hemisphere In the European Union (EU), unfavourable weather conditions– from frost to drought - significantly impacted 2019 wine production, which is lower than average. The production volume evaluated at 156.0 mhl (representing 60% of the world production) is about 15% lower than the previous year. This is a significant decline of 26.7 mhl compared to 2018 production (182.7 mhl). With a few exceptions, preliminary estimates for 2019 wine production are lower than average in the main EU countries. Compared with the exceptionally high volume of production in 2018, there is a drop of -15% in Italy (46.6 mhl), -15% in France (41.9 mhl) and -24% in Spain (34.3 mhl). This can be explained mainly by aleatory weather conditions, notably a very cold and rainy spring followed by an extremely hot and dry summer. This contraction with respect to 2018 is recorded in most EU countries. However, while in Italy, France and Spain (that together account for 80% of the EU) production is low not only with respect to 2018 but also compared to their last five-year average, other countries such as Germany (9.0 mhl, -12% /2018), Austria (2.6 mhl, -4%/2018), Romania (4.9 mhl, -4%/2018), and Hungary (3.2 mhl, -6%/2018) show production levels that are in line or even above their last five-year average. Portugal, with 6.7 mhl in 2019, is the only EU country with a wine production larger than the previous year (+10%/2018) and above its five-year average (+4%). Outside the EU, the 2019 wine production is high in countries such as Russia (6.0 mhl, +7%/2018) and Georgia (1.8 mhl, +1%/2018). Although lower than last year, the production volume in Switzerland (1.1 mhl, -6%/2018) is 10% larger than the average observed over the period 2014-2018. The United States, which accounts for about 12% of northern hemisphere production, with a preliminary estimate at 23.6 mhl of wine production (-1%/2018), registers a high level of production for the fourth year in a row. This figure is based on forecasts on grape harvest, thus it could be significantly reviewed in the coming months when more information will be available. Southern hemisphere In the Southern hemisphere, where harvests ended in early 2019 and thus preliminary figures on wine production tend to be more accurate and reliable for this period of the year, the scenario for 2019 is somehow similar to that of the Northern hemisphere, with a wine production generally lower than the previous year but overall in line with the five-year average and representing about 20% of the world production. Summary - Unfavourable climatic conditions had a significant impact in Italy, France and Spain, resulting in below average productions. - Portugal is the only EU country with a wine production higher than last year. - Slight decline of wine production expected in the United States. - In South America, wine production decreased compared to 2018, especially in Argentina and Chile. - South Africa records a lower than average production level for the second year in a row. - Australia and New Zealand show slightly lower production levels than in 2018.
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