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Wine output in France, South America expected to hit four-year low

Despite a production drop in so many countries due to poor weather in 2016, an industry trade group said consumer prices should not be affected.

By Stephen Feller

WASHINGTON, Oct. 21 (UPI) -- Bad weather may affect wine production this year, leading to 2016 potentially being one of the three worst years for output in nearly two decades, according to a wine trade group.

The International Organization of Vine and Wine said at a press conference an expected five percent drop in production in France and South America will push volume down to 259.5 million hectoliters, the lowest it has been in 20 years.

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The 259.5 million hectoliter-estimate, down from 279.2 million hectoliters in 2015, is equivalent to about 35 billion bottles of wine.

"Output was greatly affected by exceptional weather conditions," said Jean-Marie Aurand, director general of the OIV. "If there is one product that is vulnerable to weather events, it's wine."

Between decreased production in France blamed generally on the weather, and suggesting the effects of El Nino in several Latin American countries causing frost and rain, wine-producing industries in several countries were hit hard in the last year.

Although France remains the second-leading wine producer in the world, production this year is expected to drop by 12 percent due to frost and hailstorms in the spring and drought throughout the summer. Italy saw a production slip of just 2 percent in 2016.

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In South America, production of wine in Chile was expected to fall 21 percent this year, Argentina is estimated to see a drop of 35 percent and Brazil will likely report a 50 percent drop in their wine industry.

Not all countries saw production problems in the wine industry as Australia, New Zealand and the United States all saw increases in production during the last year.

Even with production dropping in so many countries, the OIV says it does not expect decreased production to affect prices enough to be felt by consumers.

"Some price tensions could appear in some geographic areas impacted by [bad weather]," an OIV spokesperson told the BBC. "But very often wine producers and wine industries keep wine stocks in order to respond to such risks."

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