Italian Wine Woes for 2014 Sobering

By: Alexandra Rhue

Produced and edited by: Olivia Harlow

  

At first glance, news about the Italian 2014 wine harvest is bleak.  Newspaper and online sites offer estimates of a 15% to 30% shortfall from previous years.  Carlo Giudice, a partner at Col di Corte Winery in eastern Italy, says that he is aware of the shortfall in the 2014 wine harvest, acknowledging that in wine production this year “many companies in Italy have had less.”  In a country that is the world’s leading wine producer, a shortfall of 15% in an annual harvest that usually tops 1 trillion gallons of wine, is a vital economic consideration.

France, Italy’s closest wine production competitor, will move into first place in the world of wine production if the wine harvest shortfall reaches proportions predicted. The ripple effects could extend beyond the economic impact suffered by Italian wineries. Italian wine experts, as well as bottlers, distributors, and owners and managers of nearly 200,000 wineries are keeping a watchful eye on the wine harvest.

Geralyn Brostrom, Italian wine expert, entrepreneur, and educator, points out that “the actual numbers won’t be calculated until sometime after the harvest finishes and producers have been able to assess and report.”

© Col Di Corte Facebook

With the harvest around 50% complete in many areas, it is an intense time in the wineries. Jim Hutchinson, wine importer at Domenico Valentino in New York, says that in areas “like Valdobbiadene-Conegliano where wines are released within months of the harvest, the impact of a severe shortfall will be felt almost immediately.”

Some well-known wine producing areas such as Puglia, Sicily, and Tuscany—all recognized for their vintage wines—are considering scrapping a 2014 vintage altogether.  Large wineries are able to minimize the impact of an unsuccessful year.  Brostrom says that “farmers, whose sole livelihood comes from growing and selling grapes to wineries, will be much more affected than a winery with multiple wines and perhaps even previous vintages to sell.”

Growing up on a farm in Italy, Carmelinda Chilelli, whose parents produced red and white wines, knows the importance of the grape harvest in family businesses.  “Children don’t go to school when it’s time for the harvest.  Everyone helps each other, because there is a lot of work behind it.”

Weather is the culprit for the recent, consistently poor wine harvest. This summer, Italy was cool and wet, a contrast to the country’s regularly warm, dry summers that usually help produce an array of fine Italian wines.  Brostrom reports that producers she has spoken with “have commented on [the weather] as well.”  High rain totals combined with the lower than normal temperatures caused grapes to ripen so slowly that vine disease developed.  Increasing the damage, hail blanketed many of the wine growing regions as storms swept through, decimating grapes already suffering from the cool temperatures and excessive rainfall.

Popular wines, such as the well known Amarone or Ripasso are likely to still be produced.  Mike Veseth, wine expert and writer for The Wine Economist, says that some producers will “omit their top of the line Amarone and divert grapes to other quality levels.”  He remains optimistic that for 2014, “there will be Amarone!”

Italian social media specialist, Federico Maisenti, suggests that “the majority of the population isn’t much aware of the problem,” and notes that he hasn’t heard of any relatives or friends discussing the issue. If, indeed, the harvest shortfall is 15% or greater, Maisenti believes the industry would face serious repercussions both on a local and global scale. “In addition to have less amount of choice personally, the export market would be heavily penalized,” he says.

Other Italians are more aware of the harvest shortfall. Fabio Venturini, an engineer from northern Italy, believes that the average Italian citizen is always concerned about weather and assumes that this year’s harvesting is not optimal.

Pietro Becatti, a young Italian musician, says that he learned of the wine harvest shortfall from newspapers and friends in the agriculture areas.  “I do not think there will be serious consequences. Probably people will use the reserves of the former years,” he says.  “They will get used to a lower quality!”

Hutchinson states, “There are still a significant number of appellations that were not badly impacted by the poor weather.”  While most producers agree that 2014 wasn’t particularly a good year, the impact on wine pricing is less clear all around.

Hutchinson says that if the general quality of wine is considered inferior, prices may go down regardless of the presence of a shortage. Giudice, taking a more optimistic view of the reduced harvest, believes that despite the bad weather, the economic impact is “not a disaster.”

© Shutterstock

Although this is evident issue in most of Italy, a few wine producing areas of the country expect to have a normal or above level and quality of wine production.  The northwest section of Italy, home to several wineries, should be able to bottle some fine vintage wines.  In the Piedmont region of Italy, the Nebbiolo grapes—now ready for harvest—should produce a hearty quality red wine, perhaps even a quality Riserva.

Clearly, the wine industry remains cyclic.  Good weather brings fine wine harvests, while rain and cool temperatures of the past summer result in poorer quality and lesser quantity of grapes. The ability of the Italian wineries to adapt and rebound must not be overlooked.  Brostom points out, “As global warming has affected the wine industry worldwide, savvy producers have also adapted, and a family or company in the wine business for the long haul is also able to adapt.”  He believes that no matter what, Italian wines have been and will remain popular worldwide. Many growers, buyers, and consumers are already looking forward and hoping for a highly successful 2015 vintage. 

French Wine Tops Market Depsite Weather

By: Jennifer Halliday

Produced & Edited by:Kaylyn Hlavaty

For decades, France has been on top of the world’s production of wine, competing closely with Italy and Spain. However, the wine industry is changing; almost every wine-producing nation is suffering a severe shortage in materials, prices are increasing across the globe, and competition is emerging in the international market. Despite the odds piled against French vintners, their confidence, and their sales, appear unaffected.

Due to this year’s inclement weather and disease-damaged raw material, France is expecting a 20 percent drop in wine production. The current production forecast is estimated at about 40.6 million hectoliters, down from 50.9 hectoliters in 2011. According to a report from the French Ministry of Agriculture, “all the categories of wine will see their production decline compared to 2011. Production estimates are particularly tricky this year due to the variation in grape weight in most of the vineyards.”

“Grapevines, like any other crop, need a healthy climate to survive,” said Catherine Thevenin, creator of Fuguesen France “they need warm, dry summers and very mild winters, and we haven’t been seeing that kind of weather at all.

                               

    Bordeaux Grapes Courtesy of  non-profit worldwidewine.com Academic Fair Use

This year, French vineyards were damaged by cold and wet conditions as well as heat waves and droughts near the end of the summer. Grapevines in Burgundy and Beaujolais were destroyed in hailstorms, with surviving crops being ravaged by mildew and funguses.

“What has made this year so hard in particular is the fact that no one vineyard has been spared. Every region has seen at least some damage during this harvest,” said Thevenin.

France is home to several different wine regions and different species of grapes grow in each individual region. Therefore, production of certain wines will drop far more than others. Production in the Champagne region alone is expected to slump 40 percent after damage from frost and “particularly virulent” attacks by mildew and oidium, the ministry said.

Although wine may seem like a luxury commodity, it consistently brings in over seven billion euros annually to France. In 2011, France exported 7.17 billion euros of wine and champagne, accounting for 13 percent of the country’s farm and food exports. The expectation is that a lower yielding grape crop will result in a lower number of wine exports.

“Every month, the estimated [wine] production number seems to go lower and lower,” said Christophe Malvezin, an Agricultural Counselor for the French embassy, “but what we aren’t seeing is a negative effect on our international trade.”

In the first half of this year, wine shipments rose 14 percent to 3.57 billion euros. The main contributors were Americans, who are purchasing French wine and spirits in record amounts. Last year alone, America supplied 18 percent of France’s wine exports. This year’s shortage of supply has caused demand for wine to continue to grow, and French winemakers are taking advantage of it by raising the cost.

Prices on French generic red wine rose ten cents per liter last month. According to Anais Ricome, a winemaker for the Languedoc’s Domaine la Croix Gratiot, an increase in prices will not deter American consumers, who are looking for a more “sophisticated” taste.

“There seems to be a lot of young sommeliers and buyers who are interested in esoteric wines,” said Ricome.

In fact, even the French are amazed at how far American consumers will go to find the best French wine. Samuel Guibert, managing director of Languedoc producer Mas de Damas Gassac, remarked that he has been surprised how well French wines from outside the best-known regions have done in America.

“The rest of France is doing better than ever,” said Guibert, “five years ago you couldn’t fill a room if you had Languedoc wines. The whole emphasis on values is playing in our favor.”

With French wine stocking shelves all across America, American winemakers are trying their hardest to compete. In an attempt to sell more wine in their top export market, American vintners are trying to use chateau labels on their wine.

“What is at stake is the respect for tradition and quality,” said Laurent Gapenne, president of the Federation des Grand Vins de Bordeaux in an interview with The Associated Press.

French chateau bottles are wines made at the estate from grapes belonging to the chateau. The chateau wine tradition dates back centuries and the exclusivity of supplies makes it a more expensive product. However, the U.S. chateau definition is less stringent, including all “vines that have been traditionally used by this wine producer or producer group.”

Courtesy of wineterroirs.com, an association of wine makers. Academic Fair Use.

“The Americans could create ‘chateau’ wines from grapes from all over and prices would of course be much lower,” said Gapenne.

While some American winemakers may be trying to push French wines out of the market with lower prices, another group of American vintners is turning their attention away from France. The Wine Institute, an association of 1,000 California wineries and businesses, has decided to focus on Asia for its international wine trade.

“Asia is a strong wine market with long-term growth across the board for California wines,” said Linsey Gallagher, International Marketing Director at the Wine Institute, “California wine and its lifestyle and cuisine hold great appeal to consumers in China and our other key Asian markets.”

American wine exports to China provided $62 million last year, a 42 percent increase. However, French vintners do not appear to feel threatened.

“There is no fear from French winemakers about the position of China,” said Malvezin.

French wine exports to China have also jumped, rising 75.5 percent just last year. In fact, China rose two spots to become the third-largest importer of French wine and spirits. Despite rough weather trends and fierce competition, France still remains dominant over the international wine industry, both in market volume and value.

Climate Change May Spell Trouble For Argentine Wine Industry

By Graylyn Roose

Edited and produced by Taylor Pool

Along the edges of the Andes along the border with Chile, sit the fields that provide Argentina with much of its revenue. The fields of grapes that cover the dry, arid mountain ridges are grown to produce the wares of the fifth largest wine industry in the world and Argentina’s economy takes 1.4 percent of its GDP from its success.

Yet on the outskirts of South America there is another kind of mountain; glaciers that developed on the Andes range. Scientists and environmental activists are concerned about the effect that climate change might have on these ice caps, which could threaten the fragile conditions needed to sustain Argentina’s viniculture.

Marcos Daviano is a professor in the University of Buenos Aires’ School of Agronomy. His research, which has included reports for the United Nations Development Project, has dealt with the possible consequences of climate change for South America’s agricultural sector. Daviano said that climate change could have an impact on the quantity of the wine industry in Argentina’s mountainous regions.

“Not so much on the quality, but probably on the yield,” said Daviano, who noted that the wine industry has begun to develop a comprehensive plan to protect its industry, should climate change have a negative effect on production. “They do have a strategic plan, if you will. I don’t think they’ve refreshed it over the last few years. But they do have a plan.”

An article put out by the Pontificia Universidad Catolica Argentina, a university in Buenos Aires, asserted that the temperature and precipitation levels of the Chilean-Argentine wine regions have already changed. In “South American Viticulture, Wine Production and Climate Change,” the authors note that the region often experiences wide swings in climate and weather conditions, but predict that the average temperature of the region could rise as much as two degrees Celsius by 2050.

Daviano said he couldn’t comment with authority on concrete temperature numbers, but admitted that predictions regarding climate change suggest that global warming will cause more extreme conditions—exactly the kind of change that could make Argentina’s wine industry suffer.

“The predictions are that wet areas, due to climate change, will become wetter and dry regions will become dryer,” Daviano said.

He said that dryer summers with less precipitation could affect water availability.

“Access to freshwater could be an issue. All the wine establishments in Argentina rely on irrigation,” Daviano said. “When the ability of freshwater for people and animals starts to end, our culture is the first one that’s going to be affected by this.”

Furthermore, an increase in climate contributes to the gradual shrinking of the glaciers that surround South America. Although this would seem to create opportunities to provide irrigation for the wine industry, Daviano said that this is not the case. Rather, area viticulture depends on the seasonal ebb and flow of the melting patterns.

“Precipitation in the wine-growing areas usually comes from melted snow,” Daviano said.

Some say production is not at risk

Martin Cavagnaro is the coordinator for the Argentine Intersectoral Forum for Sustainable Viniculture (FIAVIS) a group that works to raise awareness about issues of sustainability and climate change as they relate to Argentina’s wine industry. He said the grapes need just the right amount of water to be right for wine production.

“On the vine, especially in an arid area such as the province of Mendoza, it is essential that the supply is adequate at certain stages of the cycle for quality crops,” said Cavagnaro, who explained that high levels of water could cause fungal diseases in the plants. Cavagnaro admitted that climate change is producing changes in the worldwide wine industry but said he thinks the negative changes will depend on how the effects are handled.

“Climate change is producing different responses in different wine crops worldwide…but my personal opinion is that activity is not at risk,” Cavagnaro said. “The degree of threat will result from the ability of each region to mitigate climate change impacts.”

Enrique Maurtua is the head of the Climate Change Department at Fundacion Biosfera, an environmental organization based in Argentina.  He is also the Regional Coordinator for the Climate Action Network of Latin America and works on international and national climate change policy. He believes that if current policies do not change, the world will see an increase of four degrees in average world temperature by 2050.

Although concerned for the fate of the wine industry if subtle temperature increases occur, Maurtua says that agriculture is one small part of the ecosystem.

“If the climate is changing, the species can’t grow in this place anymore,” Maurtua said, explaining that the diversity of animals is vital to the life cycle of seeds. “You need that biological reserve to keep the seeds [going].”

He says it’s tough to apply climate change policy to the agricultural industry because climate shifts are so difficult to predict.

“It takes into account many data,” Maurtua said. “This does not mean you cannot do it. But climate change is complex because you need many variable factors.” 

Daviano said that Argentina has made significant strides in the area of sustainability and the reduction of deforestation, but that the country has work to do in regards to reducing greenhouse gas emissions, with cars mainly relying on fossil fuels. These factors have been attributed in the opinions of some experts to an increase in global temperature.

“Huge progress can be made over the next 50 years or so…but there’s very little that’s actually been done.”

However the landscape may change for the wine industry, Maurtua said that it is vital for the wine industry and individual wine producers to continue to collaborate to come up with ways to make their grape growth as productive as possible, in spite of the challenges that environmental change could cause.

“The most important thing is to keep working with them,” Maurtua said. “They do know the climate is changing and they want to keep sustaining their work.”