The level of wine stocks in the European Union

The level of wine stocks in the European Union

After a year of below-average production, will there be product scarcity problems?
March 30, 2018

The level of stocks in Europe is 171 million hectoliters, the highest level since 2010. However, the prices of the raw material “wine” have gone up a lot, especially in the low end of the market and in Europe we still spend hundreds of millions of euro every year to cut the excess production (and stocks).

The assertion that the 2017 production (poor) will inevitably reflect on the availability of the product during the year, must therefore be contextualized and, above all, put in relation to the data concerning the so-called “stocks”. The set of the mentioned elements makes it possible to state that the scarce production of 2017/18 should not be seen in a totally negative way.

Italy in particular holds 27% of the wine stored at the beginning of the campaign, compared to 32% of France.  Comprehensively there are about 10 million hectoliters of wine stored in more than the average (of the last 10 years), compared to a production deficit of about 20 million hectoliters (about 140 million hectoliters expected compared to 160 average of the decade). And as far as the three leading countries (France, Italy and Spain) are concerned, we need to distinguish.

The level of stocks in Italy appears quite high compared to recent history in Italy: given an expected production of 39-40 million hectoliters in 2018 compared to the average of 46-47, the situation does not seem dramatic: the 2015 and 2016 harvests very generous ) have determined a stockpile that will offset the lower production in progress. France holds the highest level of stocks in Europe, 54 million hectoliters. The French will produce (2018) 37 million hectoliters, 7 less than the historical average. France could suffer the least production. Spain is in a similar situation to France, stocks in line with the historical average and production at 33-34 million hectoliters, about 10% lower than the historical average of 36-37. Also for Spain, as for France there could be a more significant risk deficit volumes.