The Russian invasion of Ukraine will cause a rise in wine prices Due to the chain effect of rising energy prices and aggravation of problems in the supply chainwarned this Wednesday the International Organization of Vine and Wine (OIV).
”The war in Ukraine has added new bottlenecks in the supply chain” and that has as a consequence a inflationary impact in the wine sector as well as disturbances in the supply of inputs”, highlighted this Wednesday the general director of the organization, the Spanish Pau Roca.
In the presentation of the report on the financial year 2021, Roca also warned that “the possible interruption of trade between the European Union and Russia (…) will affect the main exporters to that country.”
Russia was in 2021 the tenth world importer of winefor an amount of 1,100 million euros (2% of the total), and its three main suppliers were three members of the EU: Italy with 33% of the total, France with 19% and Spain with 12 percent.
Roca emphasized that the conflict in Ukraine “is very clearly affecting energy prices” but it is not the only factor.
First, because both Russia and Ukraine are some of the big suppliers of raw materials. But also, for example, because the prices of containers and other basic goods and services for international trade have multiplied by 20.
Last year the World wine exports reached a record level, with an increase of 4% in volume and 16% in value to 34.3 billion euros.
This illustrates the recovery after the covid crisis, but also an underlying trend: international trade accounted for 27% of wine consumption in 2000, but has been growing ever since with a few exceptions to an all-time high of 47% last year.
An evolution described by Roca as “very satisfactory” because it shows that wine is a consumer product that has become internationalized and that illustrates “the success of a way of understanding life”.
In 2021, Spain became the world’s leading exporter in volume with 23 million hectoliters, with an increase of 14% compared to 2020, surpassing Italy with 22.2 million (+7.3%). Nevertheless, In value, the undisputed number one was France with 11,075 million euros (+26.8% in one year), followed by Italy (7,060 million, +12.5%) and Spain (2,883, +9.5%).
Roca also announced that in the southern hemisphere, where the harvest of 2022, a drop in production is expected due to weather conditions, which should be 13.1% in Argentina with some 10,850 million hectoliters, from 9.9% in Chile to 12,100 million and from 10% in Brazil to 3,240 million.
The OIV also estimates that will drop in Australia by 5.3% to 13,450 million hectoliterswhile it should grow 0.4% in South Africa to 10.65 billion and 12.6% in New Zealand to 3 billion.
(With information from EFE)
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Source-www.infobae.com