Heat waves cut the harvest | Economy

by Andrea
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The and must of this harvest will not reach 38 million hectolitros as a consequence in recent months, according to the data managed by agri -food cooperatives. They are projections made as soon as the collection initiated in some areas for the earliest varieties, already scarce weeks that it is generalized throughout the territory. This implies a slight recovery of production compared to 36.8 and 32.2 million hectoliters of the two preceding two years, also caused by drought, and the strong heats, but far from the average of the 43 million hectoliters of the last decade. To the effects of heat, the negative impact on the vineyards of diseases such as Mildiu is added, in addition to storms, pedrisks or the increasing damage caused by wildlife, especially wild boar. The existence of rains weeks before the harvest would mean an increase in production.

In this evolution of the downward offer, regardless of the measures taken in the past on the limitation of yields in Viñedo or in Bodega, the reduction of cultivation surfaces in recent decades has played a key role, starts with or without aid, to pass from more than 1.3 million hectares to less than 900,000.

However, in the axis of the problems in the sector is the evolution of demand and the response to it from the production and the winery industry. You drink less wine per person, partly by arguments linked to health, while other alcoholic graduation grows grow.

The sector to have an offer aimed at the new tastes and purchasing capacity of new young consumers, incorporation into the demand for new generations against traditional consumption of an age generation progresses in setback and, in addition, to the increase in demand for other alternative drinks such as beer, which takes the front when adapting its supply to each demand segment.

In this scenario, the demand for wine for direct consumption has stopped its line of permanent fall for more than a decade and is in a slight recovery process with an increase in the last year of 0.5% to 9.8 million hectoliters, but it is a figure that is far from the more than eleven million hectoliters of 2020. At present, Spain has a stock of wine of 33.8 million of 33.8 million Hectolitros, especially in reds, although this has been reduced from 17 to 14 million.

In that scenario, with high production, Spain forces itself as a traditionally exporting country both in packaging and bulk, in most cases from cooperatives, but also from winemaker groups. The bulk supposes a loss of added value, although it is an important activity when it comes to expediting and releasing surpluses, without forgetting that together sales translate into revenues greater than 3,000 million euros.

Other markets

From the AWM consultancy, Rafael del Rey, an expert in the sector, highlights the existence of the great possibilities that Spanish wines have for quality and prices to compete in all markets, regardless of tariff policies in countries such as the United States and for the limitations of access to other markets such as the United Kingdom by the volume of taxes.

Del Rey highlights the existence of great possibilities in other markets such as the countries of Europe further north, third countries and for this point the need for a greater capacity to adapt the offer to the markets of the export groups and where a good example is Italian exporters.

However, regardless of the road to tour and the need to improve strategies, the Spanish wine sector already has the presence in almost 200 markets where, in the community framework, Italy, France or Germany, and outside the United States, Canada and several countries in the center and south of America stand out.

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