Rabobank analyst report said: Global wine surplus is drawing to a close

According to the latest quarterly report of Cooperative Bank of Netherlands as of October, the global wine surplus crisis that has led to sluggish wine prices and declining enthusiasm among grape growers took place between 2004 and 2010.

The global wine surplus crisis is coming to an end

The agency said that after the high grape production that occurred during the period of 2004-2006, the global wine grape production has now dropped significantly, and the demand for wine has also recovered after the global financial crisis fell at the peak period.

American grape growers are expecting a big harvest in 2012 and higher grape quality. Analysts at Rabobank said that the very low yields in most parts of Europe are likely to offset this situation.

The wine grape harvests in France, Italy and Spain are also obviously lower than those in the same period of last year. Therefore, the wine production for the three countries will be reduced or the wine production in Chile will be throughout the year.

With the exception of Chile and South Africa, the southern hemisphere wine production in 2012 was relatively low.

However, Australian growers usher in good news. The climatic conditions in southeastern Australia herald an upcoming 2013 grape crop. The price of wine has also grown significantly.

The report pointed out that in the first half of 2012, Australian wine exports rose by 3.6%. Due to the increase in the market share of bulk wine exports, the value of wine exports fell by 2.9% year-on-year.

Bulk wine exports are relatively low compared to bottled wine exports. The average import price in France in 2011 was 43 cents per liter and Sweden was 1.84 dollars.

However, Rabobank stated that Australian wine export data was reversed. Treasury Wine Estates, the country’s main wine supplier, has decided to export bulk liquor to the UK before it is sold for filling.