MEXICO CITY, Nov 3(Reuters)-Environment change and the Russia-Ukraine war are squeezing international sales and production in the $ 300 billion worldwide wine market
, which is still recuperating from the pandemic, said the International Organization of Vine and Red Wine(OIV). Pau Roca, Director General of the OIV, which consists of 49 producing countries, said firms should adjust to dry spells, frosts and heavy rain produced by worldwide warming, as they have actually ended up being regular phenomena. “We continue to see the results of environment modification,”Roca informed Reuters on Wednesday in Mexico, underlining that in 2022 international wine production will fall somewhat due to poor weather in Europe, house to top manufacturers Italy, France and Spain.”We have a long history that verifies that environment change is having an enormous and consistent effect on the red wine sector,” said the 64-year-old Spaniard, who is visiting Mexico for the 43rd World Congress of Vine and Wine.
OIV production’s forecast for 2022 is between 257.5 and 262.3 million hectoliters (Mhl), or 259.9 Mhl typically, down 1 % from 2021 and below the average of the last twenty years. Last year, Spain exported 24.2 million euros worth of white wine to Russia and 16.2 million euros to Ukraine. This year that overall will fall to almost no, Roca stated.
“There’s a complete disturbance in the markets, “he stated.
The executive said the wine industry is suffering more from the energy crisis stimulated by the conflict, with greater inflation sapping customer spending. Pau stated imports of European wine to the
United States have recovered because then-President Donald Trump in 2019 imposed tariffs on the drink that were lifted in mid-2021. Now big white wine manufacturers wish to expand in the U.S. market, where per capita consumption is still low, Pau stated.
“It has an extremely significant growth potential”, he stated. Reporting by Diego Ore; Modifying by Chizu Nomiyama Our Standards: The Thomson Reuters Trust Principles.Diego Oré Thomson Reuters