World wine production in 2020 marked by weather calamities and the Covid

This year, the production of wine in the world is below average due to climate change and the coronavirus pandemic, according to the OIV.

AFP / Jean-Pierre Muller

Text by: Agnieszka Kumor

5 mins

Global wine production remains stable, but below average.

The year 2020 was marked by production declines in South America and production limitations in Europe due to the Covid crisis, according to initial estimates from the International Organization of Vine and Wine (OIV) . 

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After analyzing the data provided by thirty producing countries, the Paris-based organization places the world wine production this year between 253.9 and 262.2 million hectoliters (compared to the average of 258 million hectoliters, over the past five years).

“ 

said Pau Roca, Director General of the OIV during the videoconference,

“In question, geopolitical tensions, climate change and the coronavirus pandemic. 

In South America, a drought and fires

Struck by a historic drought, entire regions of South America have experienced devastating fires, devastating forests and wetlands.

And this after a year 2019 marked by heavy rains and floods.

The main producing countries in this region of the world, Argentina and Chile, show unprecedented reductions in wine production: 10.8 mln hl for Argentina (a decrease of 17%) and 10.3 mln hl for Chile (a decrease of 13%).

While

the extremely biodiversity - rich

and Pantanal were also ravaged by flames, Brazil managed to maintain last year 's production (2.2 mln hl).

The wine also tastes of fires in

.

Even though most producers have managed to save their vines, wine production in Australia is down 11% (10.6 mln hl).

California fires continue

In contrast, the famous vineyards of Napa Valley and Sonoma fell victim to the flames, and there were deaths.

Part of the grape production could turn out to be unusable due to the smell of smoke that persists in the fruits collected.

As a result, it is too early, according to the Director General of the OIV, to say what impact these

will have

on overall wine production in the United States.

The first estimates based on those of the United States Department of Agriculture (USDA) expect production of 24.7 mln hl (up 1%).

But this figure could be " 

" when " 

".

Regulators limit breakage in Europe

In the European Union, the harvest is estimated at 159 mln hl with a decline of 1% for the world's largest producer, Italy (47.2 mln hl), ahead of France (43.9 mln hl) and Spain (37.5 mln hl).

The production of this top three is below their five-year average.

This results in particular from upstream market regulation.

Some vineyards have, in fact, voluntarily reduced their volumes so as not to affect too much the prices already pulled down by the Covid-19 crisis. 

South Africa breathes

A glimmer of hope is coming from South Africa.

After two years of drought, the main producing country of the continent is returning to normalcy and even with a slight increase of 7% in production.

The OIV forecasts for this year place South African wine production at 10.4 mln hl.

► To listen and read also: South Africa, the other wine country

Wine trade down in the time of the Covid

The Covid got the better of European wine exports to other parts of the world, especially to the United States which remains the number one wine market in the world.

The opportunity for Argentina to increase its shipments by 52%.

An increase due to its exports to Spain and the United States. 

Also, the OIV anticipates a drop in wine sales of some 10% on the planet this year, marked by the exceptional circumstances of the pandemic and the containment which closed all the restaurants in the world almost at the same time, and

which continue to weigh on several European wines. 

► Also to listen: When Swedish wine is out of the bottle

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