Wine output hits 40-year low amid rising demand
04 Nov 2013
Denizens of wine-consuming nations are worried about a report that production of the Grape of Bacchus has dipped to its lowest level in over 40 years.
A report by Morgan Stanley released this week says, ''After adjusting for non-wine uses, demand for wine exceeded supply by 300 million cases in 2012, the deepest shortfall in wine production over 40 years of records.''
Prices will probably rise in the coming years when the 2012 vintage matures for consumption amid demand from the two fastest growing markets, the United States and China.
Industrial development is also playing its part. "The global area under vine has continued its steady decline, driven by vine pull in the Old World and minimal new plantings in the New World," the report said.
"China is the only country consistently expanding its vineyard footprint with an average growth rate of 5.3% over the past three years, although data from OIV is total table grapes, grapes for winemaking are estimated to be a much smaller percentage of the total."
Oenophiles may well worry about where their next case of wine is coming from – though probably not in India, where government policies ensure that molasses-based alcohol is far more popular than wine.
