WINE PRODUCTION DOWN IN CHILE

FROM HAILSTORMS to brush fires to droughts, Mother Nature has certainly been fickle these last few years, especially when it comes to the wine industry. As a result of devastating frost, Chile’s wine production has plummeted by almost one quarter compared to last year. However, experts aren’t expecting price rises as the country still has plenty of leftover wine in its tanks. Official figures from the Chilean government’s Ministry of Agriculture say the amount of wine produced has fallen by 22.8% to just under 989 million liters. Although a smaller harvest usually points to a price increase as supply dwindles, in Chile’s case two bumper harvests in 2O13 (1.28 billion liters) and 2O12 (1.26 billion liters) mean its tanks are well-topped up. Add to that falling demand from one of its biggest markets – the US – and experts say that prices could actually start going down once September comes around.

Imports of bulk still wines to the US have fallen by 37% for the year to April, or 19% for all wine imports from Chile, according to a report from Gomberg Fredrikson. Bulk wine broker Murphy Wine Company’s Anya Robson said: “The wineries have big volumes, mainly red wines, in tank from 2O13. Therefore the drop in production for 2O14 has not produced the upward pressure on pricing as might have been expected.” The Maule region produced almost half, at 48.2%, of the country’s wine. Of the total production, Cabernet Sauvignon made up 35.6%, Sauvignon Blanc 14%, Merlot 11.8%, Syrah 7.9%, Carmenere 7.4%, and Chardonnay 6.9%. Taking a closer look at red varieties, the production of Carmenere fell by 35%, Pinot Noir 24%, Merlot 22.5%, Cabernet Sauvignon by 19.3%, Syrah by 16%, and Pais by 14%. Hardest hit were Chardonnay, down 38%, and Sauvignon Blanc down 26.3%.