In good year, Italian wine prices fall

ROME, Oct. 31 (UPI) -- A higher volume of Italian wines in 2008 would likely be offset by an expected 20 percent drop in prices for winemakers, a trade group said.

In its 2008 report, Assoenologi proclaimed 2008 to be an exceptional year in volume and quality, the Iralian news agency ANSA reported Friday.

A 5 percent increase in volume over 2007 was matched with "overall more than good and in many cases excellent or even outstanding" quality, the annual report said.

However, wine demand has "stalled," the report said. The primary reason was "the economic crisis and relative drop in national and international wine consumption," the report said.

Volume was estimated at 44.5 million hectoliters, an increase over 2007, but still below the 1998-2007 average of 50.6 million hectoliters a year, ANSA said.