Global wine production to fall significantly due to climatic events

The Dollar Business Bureau

Global wine production this year is slated to decline to its lowest level in two decades due to various climatic events such as El Nino.

According to The International Organisation of Vine and Wine (OIV), global wine production is projected to fall by 5% because of climatic events, resulting in sharp decline in production in most of the southern hemisphere, particularly Chile and Argentina.

In 2016, the wine output is estimated to reach 259.5 million hectoliters (mhl), which is one of the lowest production years in the past two decades.

While the amount of wine produced should meet the demand of the consumers, the figures are a reminder how global warming and natural climate variability are having a profound effect on wine, and perhaps where it will be grown in future, OIV said. 

Italy will be the largest producer with 48.8 mhl, followed by France at 41.9 mhl and Spain at 37.8 mhl. 

South America will register maximum decline, by as much as 35% and Chile by 21% and South Africa by 19%.

The wine production in Australia and New Zealand, however, is projected to register a 5% and 35% respectively. 

"The El Nino climate phenomenon seems to be back in Latin America, where production was affected by fairly exceptional weather, with lots of rain," said Jean-Marie Aurand, chief executive, OIV. 

El Nino is a climatic phenomenon in the Pacific Ocean, which occurs over a period of four to five years, affecting rainfall patterns.

The El Nino weather phenomenon this year has resulted in heavy rains and frost in several parts of the world, resulting in damaged grape harvests. This could lead to price tensions across major producing and consuming regions.