France poised to reclaim top wine producer title

Early estimates on wine production and consumption figures present a mixed picture of the industry. A new EU compensation scheme to encourage growers to give up inefficient vineyards is set to shrink wine-growing areas in the EU 27 by about 75 million hectares (mha) in 2009, to 3730 mha.

Steady production ​

Despite this 2 per cent decrease, OIV expects wine production in the EU 27 to increase 1 per cent and world production to remain stable at around 268 mha.

Within the EU, France is expected to recapture the crown of biggest wine producer, with a slight increase in production, as the current leader, Italy, is on course for a drop in production.

As for levels of wine consumption in 2009, OIV was uneasy about giving firm predictions. A modest reduction in consumption was observed between 2007 and 2008 as the financial crisis hit, and a continuation of that downward trend is expected this year.

Wine consumption​

Federico Castellucci, director general of the OIV, said: “Unless the volume of imports increases, world viniculture consumption in 2009 may, unfortunately, continue to decrease compared to 2008 levels.​

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“This decrease shall be due to a decrease in trade volume and the consumption of importer countries, affected by the crisis.”​

While demand from countries badly affected by the recession is likely to fall, sales volumes may actually increase in some recession-hit countries.

OIV pointed to the recent evolution in demand from the US saying that volumes are increasing in the country, despite the recession. But that good news has a caveat as purchase prices are on the decrease.

To view the full OIV economic data on the wine sector, click here.​