Balance sheet on the Rhône

Lockdowns cause decline in sales, but exports remain stable

The Rhône Valley draws a satisfactory balance of the crisis year 2020
The Rhône Valley draws a satisfactory balance of the crisis year 2020

At the Inter Rhône press conference in Avignon on 29 April 2021, President Philippe Pellaton drew an overall positive balance of the business year: "The Rhône Valley has largely weathered the crisis well economically, given the many difficulties we faced last year." 

2020 brought the southern Rhône valley its earliest harvest in the last ten years. The harvest balance totals 2.7 million hectolitres from 66,572 hectares of vineyards. This is three percent less than in 2019 but remains within the average of the last five years. Red wine accounts for 75 percent of production at 2.03 million hl; rosé comes in at 420,302 hl (16 percent); and white wine at 256,950 hl (nine percent).

Pellaton said that sales of AOC wines in 2019/2020, at 2.45 million hl, were lower than in recent years, but only down by about eight percent compared to 2018/2019. The decline primarily affected the national market, as this had suffered greatly due to the lockdown of the on-trade channel, "even though a large part has shifted to the on-trade," he said. This could also explain the increase in stocks as of 31 July 2020 by about ten percent, to 2.3 million hl. 

Exports mostly stable

Exports, on the other hand, had "held up pretty well" despite all the obstacles caused by the Corona crisis, US punitive tariffs and Brexit. "Thanks to European countries such as Belgium, Germany, the UK and Scandinavia, we have only seen a decline of about one percent here," Pellaton said. 

Some export markets, however, are troubling, he said. Only about 45,000 hl of wine was exported to China last year, 36 percent less than in 2019, and the Rhône Valley saw a 16 percent drop in US exports, according to French Customs. This means that in 2020, Belgium, as the largest export market, and the UK have relegated the previously leading USA to third place. 

The winner in exports is Norway, with an increase in volume of 55 percent to around 33,000 hl. Germany remains the fifth most important export market for the Rhône Valley. At 56,000 hl, this volume has increased by one percent compared to the previous year. 

Pellaton is positive about the future for the Rhône Valley, despite the devastating frost nights at the beginning of April, which — depending on the sector — are likely to cost 30 to 40 percent of the total harvest. itp
 

 

 

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