Winery Construction and Equipment Costs Rocket. Concrete Tanks and Eggs may benefit

Price increases might hit wineries hard.

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Rising prices of steel tanks (Photo: rh2010/AdobeStock)
Rising prices of steel tanks (Photo: rh2010/AdobeStock)

According to Roman Tournier of the Montpelier-based engineering consultancy, Ingevin, the cost of setting up a winery in Europe has risen by 20-25%.

Quoted in a report in the French publication, Vitisphere, Tournier said that all of the components - steel, stainless steel, concrete and wood – have been hugely affected by the rising energy prices and supply-chain disruption.

The Vitisphere piece also quotes a joint letter to the French government from the chairmen of Axema - the association that represents agricultural equipment and agri-environment businesses – and SEDIMA, its counterpart in agricultural equipment services ands distribution. In it, the two men state that “Prices of raw materials have risen dramatically since 24 February. Steel sheets from Northern Europe were trading at €680 euros/ton in January 2021 and are now reaching prices of €1,800, with peaks of €2,200”.

Any winemakers thinking of buying new stainless steel tanks may have left it too late to avoid the price increases, and many may now be giving even more thought to switching to increasingly fashionable concrete tanks and eggs. The price of the raw material for these containers has not risen as much as steel and wood, because it requires less energy to produce and, by its very nature, does not tend to be transported over such long distances.  

 

 

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