World wine production volume below average in 2020 By Spiritz Desk 01 Dec 2020 in Latest News New Update After the exceptionally high production of 2018, for the second consecutive year, the world wine production volume is expected to be below average in 2020, says the first estimates of 2020 wine production by International Organisation of Vine and Wine (OIV). Based on information collected on 30 countries, which represent 84 percent of the world production in 2019, 2020 world wine production (excluding juices and musts) is estimated between 253.9 and 262.2 mhl, with a mid‑range estimate at 258 mhl. The 2020 production seems in line with that of the previous year of +1 percent compared to 2019. In fact, this is not necessarily to be considered as bad news for the wine sector given the current context where geopolitical tensions, climate change and Covid-19 pandemic are generating a high degree of volatility and uncertainty in the global wine market, says OIV. In the Northern Hemisphere, for European Union (EU) the production volume this year is estimated at 159.0 mhl (excluding juices and musts), about 5 percent more than in 2019. This volume shows an annual increase of 7 mhl compared with that of 2019. Overall preliminary estimates for 2020 wine production in EU countries indicate a much more heterogenous situation compared with the previous years. An example is given by the three largest producing countries where, with respect to 2019, there is a drop of -1 percent in Italy (47.2 mhl), a slight increase of 4 percent in France (43.9 mhl) and a significant rise of more than 11 percent in Spain (37.5 mhl). It should be noted however that all three countries, which together account for 49 percent of the global wine production and 81 percent of the EU wine production, show preliminary levels of production for 2020 that are lower or just below their last five-year averages. A positive growth with respect to 2019 is recorded also in other large EU wine producing countries such as Germany (8.9 mhl, +8 percent/2019), Hungary (2.9 mhl, +22 percent/2019) and Austria (2.7 mhl, +10 percent/2019). Portugal, with 6.5 mhl in 2020, is in line with its 2019 production and with its last five-year average, while countries such as Romania (3.6 mhl) and Greece (2 mhl) show a negative variation with respect to both 2019 (-7 percent and -2 percent respectively) and their last five- year averages (-12 percent and -17 percent respectively). In the Northern Hemisphere outside the EU, the 2020 wine production is high in countries like Russia (4.7 mhl, +2 percent /2019) and Ukraine (1.0 mhl, +1 percent /2019), while Georgia and Moldova (undergoing drought) have recorded a contraction in production with 1.7 mhl (-3 percent /2019) and 1.2 mhl (-18 percent /2019) respectively. Wine production volume in Switzerland in 2020 (0.9 mhl) is expected to be not only smaller than last year (-10 percent/2019), but also 8 percent smaller than the average observed over the last five-year period. In the USA, the preliminary estimate for wine production is at 24.7 mhl (+1 percent /2019). At this time of the year, data on grapes harvest in China is not available. However, wine production is likely to continue the contraction that started in 2016 for structural reasons outlined in the OIV report on the state of the vitivinicultutral sector published in April 2020. In the Southern Hemisphere, due to unfavourable climatic conditions, the production estimate for 2020 is 49 mhl, which is -8 percent with respect to 2019. South America is the region in the Southern Hemisphere that registers a sharper decrease with respect to the production level of 2019. In Argentina, 2020 wine production drops significantly to 10.8 mhl (-17 percent /2019). Chile, with 10.3 mhl, records a 13 percent decline with respect to 2019 mainly due to drought. Both countries show production levels that are well below their last five-year average, with -13 percent and -10 percent respectively. Brazil has an estimated wine production volume of 2.2 mhl in line with the last year, a level that is 15 percent lower than its five-year average. In South Africa, wine production in 2020 is estimated at 10.4 mhl. In Oceania, Australia registers a strong decline in wine production volume in 2020, at 10.6 mhl (-11 percent compared to 2019 and -16 percent with respect to its last five-year average). In New Zealand, wine production shows an opposite trend with respect to Australia and for the fourth year in its history it produces more than 3 mhl, precisely 3.3 mhl in 2020 (+11 percent /2019 and +15percent compared to its last five years’ average). You May Also like Read the Next Article