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Overproduction - the Greatest Challenges to the Wine Industry

Worldwide, overproduction has long been one of the greatest challenges to the wine industry.

In the last three years Spain, France and Italy's wine production has increased by over 24 million hectolitres. According to figures from the International Wine and Vine Organisation, a bumper crop in Australia, Argentina and Europe has put global wine production at an estimated 287 million hectolitres (the highest since 1992). Most of this increase is attributable to France, Italy and Spain - the world's three largest wine producing countries.

The European Union produces an astonishing 1.5 billion litres of unwanted of wine every year which equates to 4 bottles per person per year. EU spends half a billion euros every year turning wine we don't buy into spirit that's not needed, so that the vineyard owners can survive.

Since 1981, the EU has been distilling surplus wine into industrial alcohol which is a costly process. There is an annual budget of ?220 million which can be used to distil 11 million hectolitres of wine.

Until the 2002 vintage, there had been a crisis distillation each year since the mid-eighties. The last crisis distillation, from the 2001 harvest, removed an extra 7 million hectolitres of wine from the market.

But this year, a combination of higher production, a weak dollar and declining domestic consumption in both Spain and Italy, spells trouble for the EU wine industry - and consequently the possibility of reigniting crisis distillations.

Denis Verdier, president of the CCVF said: "It is the first time in the history that the gravity of the crisis has led to AOC wines calling upon distillation". In addition to the distillation, Mr. Verdier asks for financial assistance in pulling up vines, including 10,000 hectares in the Bordeaux region.

Several reports suggested that half the vineyards in the EU are to be grubbed up. These proposed measures are still being discussed. So the earliest any proposals can become a reality is 2008, this combined with plans to stop buying and distilling surplus wines and relax constrictive winemaking and labelling rules means that Europe is set to continue producing more wine that we want to drink!

About the Author

Visit Vintage Roots at, for organic wines


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The Best Articles on Wine

Raise A Glass To The Best Wine Of The Month Gifts!

Are you looking for some of the best wine of the month gifts? We have taken out all the hard work and done your research for you. See our Wine Gifts page ( for our suggestions, but heres a little information you need before buying any wine of the month gifts.

First, you need to decide your budget. If its small, thats not a problem. There are so many choices when it comes to wine gifts: number of months, number of wines, color of wines, regions and so on that anyone can afford to give a wine of the month gift. You dont have to go with 12 months month to month, 3 months, 6 months are also available.

You can also opt for wine clubs that send wine and gourmet food every month. These are of course slightly more expensive, but in my opinion you shouldnt have to drink your wine without anything to compliment it. A great thing about joining a wine club also is that theres usually an extra discount on other purchases you make. Yes, its not the cheapest gift to give, but if you know a wine lover, a wine of the month gift can be the best gift they ever get!

About The Author

Tara Pearce is the webmaster and author of all content at If you need a great gift that anyone would love, visit our site for some of the yummiest treats you'll ever find!

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Wed, 23 May 2007 20:07:16 GMT

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Banned wine a 'Christmas gift' for cops - Melbourne Herald Sun

Wed, 23 May 2007 17:55:47 GMT

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The mixed selection of wine costing up to $12.50 a bottle, is now at the centre of an internal police investigation and has heightened tensions between the ...


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