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Chile: 20% of the vineyard is not profitable


Chilean viticulture is in crisis. 3 million hl of wine stock have not been sold during the last campaign. With the expected good harvest for the harvest, the stock could still heavier and reach 5 million hl. This increase in inventory is due to lower domestic consumption and insufficient growth in exports (up anyway from 9.7% in 2006).
According to some experts, 20% of the area under vines are currently below the breakeven point, grubbing could be made. This year, the sale price of grapes has dropped to 80% for certain varieties. According Silav Eduardo Vial, wine industry consultant, Carmenère, emblematic grape of Chile, is among the most affected. It sells this year $ 0.3 per kilogram, a price decrease of 50% compared to 2006. Gerardo Arteaga, President Corporacion Chilena del Vino (CCV) must meet very soon the Minister of Agriculture to propose solutions. Source: Diario del Vino
Type : Millésime 2004

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