World wine exports will drop in 2009, with wine production also taking a dive, according to a report by the United States Foreign Agriculture Service (USFAS).
The wine industry downturn has been precipitated by lower demands and concerns about an oversupply from rapid production, claimed the data.
“World wine exports are forecast at 45 million hectolitres (HL), down 3% from the previous year due to lower demand in select markets,” stated the USFAS report entitled Wine: World Markets and Trade.
A drop in demand from Russian consumers and other top markets will lead EU exports to fall 10% to 17 million HL, while demand for Australian exports, the world’s second largest exporter, will remain flat throughout 2009.
Production in the EU, the world’s largest wine producer, will drop this year to 151 million HL, while Australian production has also suffered with data from the USFAS suggesting it will drop nearly 10% to 12 million HL.
“World demand for wine is likely to ease only marginally in 2009 as consumers shift to lower cost brands rather than significantly reduce their consumption,” summarised the report.
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