World wine production to drop by 5% in 2016

Global wine production is expected to drop by 5% in 2016, making it one of the three lowest yielding vintages in the past twenty years, according to the International Organisation of Vine and Wine (OIV).

At a press conference held yesterday, the OIV said global wine production, excluding juice and musts, is likely to reach 259 million hectolitres in 2016 – a decrease of 5% compared with 2015 – and placing it among the three poorest years for production since 2000.

In 2015, production increased by 2% to 275.7 million hectolitres, in what was generally a very healthy vintages. This year, poor weather conditions across Europe and South America has impacted yields.

By country, Italy claimed its place as the world’s biggest producer once more, with estimates of 48.8 mhl for 2016, down 2% on last year, followed by France at 41.9 mhl, doen 12%, and Spain with 37.8 mhl, an increase of 1%.

Germany and Portugal followed a downward trend with 8.4 and 5.6 mhl (-4% and -20%) respectively, while in Romania (4.8 mhl) and Greece (2.6 mhl) production was on the up (+37% and +2%).

It follows lingering drought across much of Europe and a hot, dry summer, which did affect volumes, but also promises greater quality and concentration of grapes from the 2016 harvest.

In South America, production was adversely affected by El Nino, with Argentina recording a significant reduction in its production with just 8.8 mhl vinified in 2016, down 35% compared with 2015. Chile meanwhile, at 10.1 mhl, saw a decrease of 21% compared with 2015.

In Brazil, production fell to 1.4 mhl, a sharp drop of 50% compared with 2015. South Africa meanwhile saw a decline of 19%, with production volumes of 9 mhl.

Elsewhere the US, at 22.5 mhl, recorded a high production level, up 2% compared with 2015, while the OIV said Australia was expected to see a 5% rise in production and New Zealand a 34% jump.

UK wine production has not been included in the OIV’s report since the country left the organisation in 2005 over the costs of being a member.

Earlier this year, Jancis Robinson MW used her keynote speech at the International Cool Climate Wine Symposium to call on the UK government to reinstate its membership with the OIV, with the UK’s wine industry now flourishing.

“For some mysterious reason, Defra has failed to renew its membership of the OIV, the world’s massively important International Organisation of Vine and Wine, whose president, Monika Christmann, has taken time off to be here,” said Robinson in her speech.

“This means that Plumpton can’t participate in international research projects, leaving it marginalised from the world of wine academia. And it also means that the British in general and English producers in particular have no voice whatsoever in international wine negotiations and regulation. “Holland, Belgium, Sweden, India and Azerbaijahn are all members, whereas it would only take a small, five-figure sum for the UK to rejoin the OIV. This is surely a great shame and it would be only sensible to remedy this.”

A total of 37 new English wine producers entered the industry last year to meet growing consumer demand for English sparkling wine, according to research from national accountancy firm UHY Hacker Young. Over the last five years 170 English wine producers have been founded. Around two thirds of England’s wine output is sparkling, with Defra predicting that English wine exports will rise from £3.2m in 2015 to more than £30m by 2020.