Update on the Spanish bulk wines market: Will there be crisis distillation?
The meeting between Luis Planas (Spanish Agriculture and Fisheries Minister) and Janusz Wojciechowski (European Agriculture Commissioner) was held as planned on March 22 and 23. According to information received by agricultural unions, Wojciechowski was not very much in favour of offering additional funds to help the wine sector.
Additionally, the frosts in early April that affected several countries and European wine regions—including France and Italy—have not had a significant impact on Spain or Portugal. The resulting damage has sparked a particular interest among producers from Spain and other regions, who are closely watching the production of grapes and wines, especially in France.
As a result, the Spanish sellers’ market is currently in a stronger position than it had been in. As an example, in Extremadura (a region in western Spain, on the Portuguese border) prices have recovered with sharp increases, although we don’t know yet whether these prices will hold. Increases from €2.00 to €2.40 per hectograde (degree of alcohol) for white wines, and from €2.80 to €3.10 per hectograde for generic reds, have been noted.
As for Castilla La Mancha, the prices have increased (5%) for Tempranillo and are now €2.80 to €3.00 per hectograde and for white wine grapes such as Macabeo it has increased (10%) prices are now €2.55 to €2.80 per hectograde .
In spite of this, there are still voices in Spain that are campaigning for economic aid from the European Union, so here we can see more than a bit of incongruity[i].
In conclusion, with all of these factors in mind, it can be stated that the possible crisis distillation scenario we had talked about in our previous article is now seen as a thing of the past, rather than as an actual possibility.
Chilean Agricultural Engineer – Winemaker
Bulk wine broker at www.masvino.ca
[i] Source: Javier Sánchez-Migallón, El Correo del Vino, May 17, 2021 https://elcorreodelvino.com/que-alguien-me-lo-explique-o-que-me-lo-aclare/