by Ana Maria Barahona and Jürgen Mathäß
The Chilean wine industry remains mired in difficultites. Three million hectoliters of wine are still in stock from the 2006 harvest with no buyer in sight. The current 2007 harvest could cause that number to rise to as much as
five million hectoliters. This situation is due is part to a fall in domestic consumption, but more importantly to exports that, although they grew at 9.7% in 2006, have fallen short of previsions. The strong peso has exacerbated matters further. Analysts believe that as much as 20% of the total vineyard area is operating at a loss. This year, prices for some varietals have fallen by as much as 80%. Carmenère, example, which has become the varietal many aspiring consumers associate with Chile, sold for a little as US$0.30 (€0.22) per kilogramme this year, only half of last year’s price. The minister of agriculture is currently considering moves to limit the damage.
