Forecasts from the French agriculture ministry predict that the country’s wine output will range between 40 and 43 million hectolitres, below the five-year average of 44.2 million and significantly less than last year’s 47.9 million.
The government attributed this decrease to humid conditions during early summer, which led to mildew affecting most wine-growing regions. As a result, heavy losses are expected in the hardest-hit areas.
Additionally, vineyards have experienced a decline in leaves, flowers, and young berries, also due to the damp and cooler conditions during the flowering period. However, the government noted that wet soil, resulting from months of continuous rainfall, could help mitigate the drop in wine production, with vegetation currently one to two weeks behind last year’s growth cycle.
While region-specific estimates were not provided, the government anticipates lower production in Champagne due to frost and hail in spring. In Bordeaux, the vine uprooting program, which is behind schedule, is expected to further reduce production compared to 2023.
Last year also saw intense mildew pressure, described as “exceptional” due to the unprecedented scale of the attacks, particularly on Merlot. The situation was so severe that a helpline was established by the local agricultural body in Bordeaux to support winegrowers affected by the mildew’s impact.
This news comes after Europe experienced its hottest summer in two millennia last year, significantly reducing agricultural output in Italy and allowing France to take the top spot in wine production for 2023.
Italian farms reported a 3.9% annual decrease in production during 2023, with vines, fruits, and olives down by 11.1% in volume, according to the national statistics bureau. Overall, wine production in Italy dropped by 17%, as the extreme heat extended well into autumn. Hailstorms also caused severe damage to many Italian vineyards.
The outlook for Italian production this year is uncertain, but Prosecco producers have already raised concerns about the impact of hailstorms and other severe weather events.
The expected decline in wine production across France, particularly in regions like Bordeaux and Champagne, combined with similar challenges in Italy as mentioned above, means that supply will be tighter. As supply diminishes, the value of existing and future vintages is likely to increase, especially for high-demand wines. Investors can benefit from this scarcity, as reduced availability typically drives up prices. Moncharm Wine Traders offers the latest news and insight into current investment opportunities and how wine investment can help you gain profitable returns. Click the button below to learn more.
When wine production declines, particularly for fine or rare wines, supply decreases while demand often remains the same or even increases. This imbalance can drive prices up, making wine more valuable over time, especially for limited, high-quality vintages.
While reduced production can lead to higher prices, it doesn’t guarantee returns. The overall market demand, the reputation of the winery, and economic conditions play critical roles in determining whether a particular wine will appreciate in value.
A decrease in production during an exceptional vintage often increases value, as investors and collectors seek to obtain scarce, high-quality wines. Conversely, a lower-quality vintage might not see the same demand, even if production is reduced.
Investors may seek to buy early, especially if they anticipate future scarcity or expect the wines to become highly collectible. Diversifying across different regions and producers can also help mitigate risks while taking advantage of production trends.
The expected decline in wine production across France, particularly in regions like Bordeaux and Champagne, combined with similar challenges in Italy as mentioned above, means that supply will be tighter. As supply diminishes, the value of existing and future vintages is likely to increase, especially for high-demand wines. Investors can benefit from this scarcity, as reduced availability typically drives up prices. Moncharm Wine Traders offers the latest news and insight into current investment opportunities and how wine investment can help you gain profitable returns. Click the button below to learn more.
