September 12, 2014

France is set to outpace Italy to become the world’s top wine producer by volume as adverse weather caused a 15% drop in production in Italy.  As a result Italy will see its smallest wine production since 1950, producing 41 million hectoliters.  France will produce 45 million hectoliters – up from 42 million last year.  In July, total rainfall across Italy was 73% above normal and combined with high temperatures, various fungal rots occurred lowering yields.  In Sicily and Puglia output could be down by as much as 30%.  Italy’s wine sector encompasses 200,000 producers and has sales of €9.5 billion – half of which comes from exports.  Even though France’s wine industry will see a strong year, exports to China, its fifth biggest export market were down 3.5% in volume and down 7% in value in the first half of 2014 compared to the same time period a year before because of China’s austerity drive.  And after four years of stability, global wine consumption declined by 1% to 239 million hectoliters according to a report by International Vine and Wine released in July.

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