The price of grapes rises in Argentina: With a 50% lower harvest due to frost, speculation grows

Published 2022년 12월 8일

Tridge summary

Over 80,000 hectares in Argentina have been affected by frost, with significant damage to grapes and fruit trees, leading to a projected 51% drop in viticulture production and a 69% drop for fruit tree production. The government is still quantifying the damages, and both producers and winemakers anticipate price increases for 2023 due to scarcity. The price of grapes and wine is subject to supply and demand fluctuations, and the current tension is exacerbated by payment delays. The season will start with a base price, which will be adjusted based on grape quality and other factors like atypical heat, water scarcity, and hail falls.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Although still under the classification of estimates, the Mendoza government has already confirmed the total number of hectares affected by frost, as well as the drop in the production of grapes and other fruit trees that this would imply. Thus, there are more than 80,000 hectares affected, of which 54,000 correspond to vines, 23,000 to fruit trees and 2,500 to horticultural crops. In this context, and always according to official information based on the average damage reported, production will have a 51% drop for viticulture and 69% for the sector linked to the production of fruit trees. In this context and in the midst of the bid between the Nation and the Province, for the announcements of the Minister of Economy Sergio Massa that have not been fully fulfilled, the announcement of new aid for the sector and a certain delay in the quantification of the damages, both producers and Winemakers focus on what can happen to the price in 2023. The truth is that most agree that there ...

Source: Mdzol