France's Wine Output to Plummet Amid Humid Weather and Diseases

France, the world's leading wine producer, anticipates a significant drop in wine output due to humid weather fostering diseases and adverse weather conditions like hail and frosts. The situation is impacting premier wine regions like Bordeaux and Champagne, possibly leading to higher prices as scarcity looms.

Wine production in France, the world's largest producer, is anticipated to decline substantially this year. The French farm ministry reported that humid weather has spurred the development of diseases across vineyards, with some regions also suffering from hail and frosts. Preliminary estimates project overall wine output to be between 40 million and 43 million hectolitres, falling below the five-year average of 44.2 million hectolitres and significantly lower than the 2023 output of 47.9 million hectolitres.

Wine and spirits are among France's major export earners. However, the sector faces challenges from declining domestic consumption, affecting production areas such as Bordeaux and leading to farmer protests. The drop in output could potentially influence wine prices; while prominent chateaux may increase prices for their limited vintages, France is contending with robust international competition.

Champagne producers, who typically blend several vintages, may also raise prices despite this practice. The farm ministry noted that mildew, exacerbated by early summer's humid conditions, has impacted most wine-growing regions, likely causing considerable losses. Additionally, many vineyards experienced reduced flowering, leaf growth, and berry development due to the cool and wet conditions during the flowering period. Still, the ministry suggested that the rainy season's wet soils might help mitigate the production decrease, even though vegetation remains one to two weeks behind last year.

While the ministry didn't provide detailed regional estimates, it indicated that Champagne is expected to see lower production levels compared to 2023 due to spring frosts and hail. In Bordeaux, reductions in vineyard areas and the impacts of coulure, mildew, and hailstorms are predicted to cut production further after a decrease in 2023.

(With inputs from agencies.)