Agribusiness specialist Rabobank has found that the global wine glut is ending.
Rabobank’s third quarter report on the global wine industry has stated that “global supplies are nearing demand equilibrium”.
An analyst at Rabobank, Stephen Rannekleiv, said, “Overall, total global wine production and inventories appear set to decline in 2012.
“Increasing output in the U.S. will be more than offset by the decline in production in the Southern Hemisphere, with the exception of Chile and South Africa, as well as the significant drop in output from Europe.”
Analysts are tipping a very small harvest in Europe, with France, Spain and Italy all headed for harvests way below last year’s levels.
Rabobank notes that for Australian producers, wine exports are up 3.6 per cent by volume, though down 2.9 per cent by value.