The wine industry is facing a complicated year. In the eye of the hurricane, the price of grapes, such a low price that is leading farmers to stand up war. A problem that It has been hanging on the sector From before even the beginning of the harvest.
The food chain law. The Unió Llauradora, Agrarian Organization of Valencian, has been the last sector group in denounce the situation of the grape market. The organization has claimed to claim Ministry of Agriculture Valenciana A study on the production costs for the grapes used for wine production, a study they consider could “endorse possible complaints for breach of the food chain law.”
This legislation is responsible for regulating “the operation and vertebration of the food chain.” A law that seeks, According to the Ministry of Agriculture, Fisheries and Foodimprove the efficacy and competitiveness of the sector while reducing the imbalance in commercial relations.
According to explained in a statement The Llauradora Unió, this legislation “the only instrument that producers possess to defend their interests (…) in the face of commercial distribution abuses.”
20% less. Farmers do not consider that the price at which wine producers buy the grape is fair. According to the forecasts of the Valencian Sector Association, the price of grapes could fall by more than 20% this year.
Expectations v. reality. The Valencian field is the last to join the complaints of other vinification grape -producing regions. The harvest seemed to be abundant, with some areas relying on a recovery in production also 20%. This increase in supply would be the great engine of the price drop, a decrease such that for some wine producing regions they have indicated in recent months that they would not allow them to cover production costs.
To this problem, the Unió Llauradora adds another in the fact that its harvest is not even reaching the expected volume at first. Despite this, prices, based on more optimistic expectations, They continue to be low.
“The rains recorded at certain times of the campaign were a relief and contributed to the recovery of the vine The association stands out.
One crisis after another. The current one is just one of the crises that the sector has had to face in recent years. The increase that some wine regions have seen in production responds rather to a recovery compared to recent years, marked by the drought that put a good part of the agricultural sector against the strings (even the farmer).
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