agriculture

Too much wine stays in the cellar: 'Less yields and a stop to planting'

For UIV, it is necessary to introduce measures limiting the quantities produced: with the harvest just around the corner, there will be 90 million hectolitres on the market. First requests for crisis distillation arrived

by Giorgio dell'Orefice

4' min read

4' min read

Among the many threats related to Trump's tariffs there is one very dangerous aspect that has not yet been well focused on: they overshadow all other issues. Difficulties that do not then disappear as if by magic, but remain there.

And Italian wine, heavily exposed on the subject of tariffs given that the USA is the leading foreign market in terms of value, has and had difficulties even before Trump's return to the White House. Difficulties linked to an imbalance that, year after year, is widening more and more between excessive production and a market, both domestic and international, that no longer consumes as much as in the past.

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For some years now, profound changes in consumption styles have been taking place. Red wines are losing ground, according to some, also penalised by the climate change which, with higher temperatures, does not favour them, while products such as white wines and sparkling wines, which are 'easier' and therefore, served cold, are better suited to consumption outside meals, as aperitifs or cocktails, are holding their positions. But beware, the most popular wines also hold their positions, but do not record great progress.

A crisis, of course, that does not only affect Italy but also other competitors. However, while in France vineyards are being scrapped (15 thousand hectares of vines uprooted in Bordeaux alone where a litre of base wine in recent days was quoted at 0.77 euro per litre, a price below any economic sustainability), in Italy from a production point of view not much has changed. On the contrary, planting continues. A 1% per year of the area under vines, around 6-7 thousand hectares of new vineyards every year to produce wines that many no longer want.

"It is hard for a wine-grower to admit, but the reality is that we are worried about the coming harvest,' comments the President of the Italian Wine Union, Lamberto Frescobaldi. 'We have been talking about the risk of overproduction for more than a year, in 2023 we were 'saved' by the downy mildew fungus that cut production, and in 2024 the bizarre weather will limit supply. But if the 2025 harvest is average, we will have about 50 million hectolitres, which together with the 43.6 currently in stock because unsold from past harvests, we will have 90 million hectolitres to place on the markets. We have an Observatory that provides precise data and this is a scenario to shake one's wrists'.

A thermometer of overproduction are the requests for crisis distillation to transform into alcohol (with public aid) quantities of wine to be taken off the market, guaranteeing producers if not an income then a minimum return on their costs. Requests have not been lacking this year either and have come from the Piedmontese production basins of Brachetto, Asti and Barbera. There is a crisis table open in Tuscany and similar requests could also come from Lambrusco. To these must be added the stocks made or extended by DOC wines such as Verdicchio and Pinot Grigio delle Venezie.

At the Italian Wine Union, they have clear ideas on the levers to be used to achieve greater control over production. "First of all, reduce the grape yields per hectare that can be produced for two years," explains Frescobaldi, "starting with generic and table wines. For these, a ceiling of 300 quintals per hectare was envisaged, an enormity considering that an average of 60 quintals per hectare is produced in DOC wines. But it is not enough to reduce the ceiling, we also need to cancel the derogations because the moment after that limit was set, flexibilities were introduced that allowed production of up to 400 quintals per hectare. We can no longer afford this. But we must also work on the DOCs by reducing yields here too and eliminating those flexibilities such as reclassification mechanisms (whereby a DOC wine is downgraded to IGT and IGT to table wine) to sell at a lower price. These are mechanisms that flood the market, lower prices, and destroy the value and image of Italian wine and the patrimonial value of our vineyards, which are instead an essential asset for our companies. Another issue that is dear to us is that of new vineyards: we propose to suspend the issue of new planting authorisations for one year'.

All these pieces, according to UIV, could find their place in a revision of the Testo Unico del Vino, a measure launched in 2016 but which no longer reflects reality in many respects.

And then there is the market. "I do not want to add anything else on tariffs,' Frescobaldi continues, 'except to report the great concern I sense among US importers. In such a scenario we can no longer afford to keep an agreement like the one with Mercosur on stand-by. Brazil is a country where incomes are growing, there are cities like São Paulo that have nothing to envy from western cities, and there is a strong presence of citizens of Italian origin. There are all the prerequisites to grow our wine in those markets. Let's not waste any more time'.

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