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HomeBusiness NewsSluggish gross sales depart Portugal’s iconic wine producers grappling with bitter grapes

Sluggish gross sales depart Portugal’s iconic wine producers grappling with bitter grapes



Jose Manuel Ferreira ought to have already began harvesting grapes on his century-old winery in northern Portugal — as an alternative he’s nonetheless in search of a purchaser for his crop.

“I used to promote my grapes to a cooperative, however this 12 months they refused me,” the 74-year-old informed AFP in Sao Joao da Pesqueira, within the coronary heart of the Douro wine area.

“We really feel deserted. It’s revolting,” he mentioned.

His plight is repeated throughout the Douro Valley, identified for its limitless swathes of vineyards cascading down lush inexperienced hills on tiered terraces carved over the centuries.

The trigger: sluggish gross sales of the area’s well-known candy port wine and overproduction.

Roughly 20,000 winegrowers function alongside the banks of the River Douro, which winds its approach throughout northern Portugal earlier than spilling out into the Atlantic at Porto, the nation’s second-largest metropolis, the place main wineries are primarily based.

Most vineyards within the area belong to a number of homeowners, who domesticate small plots averaging simply two hectares (5 acres) and usually promote their output to teams working giant estates referred to as “quintas”.

Port wine, which is made by including brandy throughout fermentation, was invented by the British within the 18th century and went on to change into considered one of Portugal’s most well-known exports.

Can’t compensate

The Higher Douro area, which in 2001 was added to the United Nations’ cultural heritage listing, produces port wine and desk wine, with each having fun with a protected designation of origin standing.

This implies they are often made solely within the area in accordance with a set of manufacturing specs.

Whereas gross sales of Douro desk wines are rising, these of port wines — that are extra worthwhile — have fallen steadily in recent times due to altering shopper habits.

Wine consumption has decreased globally, and particularly so for merchandise like port wine which can be historically drunk earlier than meals to stimulate the urge for food.

The amount of port wine offered yearly has fallen during the last 15 years by 1 / 4 to almost 65 million litres in 2023.

“Douro desk wines can’t compensate for the autumn in port wine gross sales,” mentioned the top of Portuguese wine promotion physique ViniPortugal, Frederico Falcao.

“The grapes nonetheless to be harvested within the Douro area are being offered at very low costs, usually not even sufficient to cowl the price of choosing,” he added.

“Sadly, this implies there may be more likely to be various grapes left uncollected within the vineyards.”

Manufacturing reduce

To deal with the issue of oversupply, the Port and Douro Wines Institute regulatory physique has slashed the port wine manufacturing quota this 12 months to 90,000 barrels from 104,000 in 2023. Every barrel comprises 550 litres (145 gallons).

However business representatives argue this degree of manufacturing stays too excessive given the quantity of shares which have constructed up in recent times.

These reserves allow main port wine manufacturers, which management nearly 90 p.c of the market, to restrict their losses.

It’s small growers like Ferreira, whose modest plot is anticipated to provide round a tonne of grapes this 12 months, which can be being hit hardest.

“The area, which has a novel, world-famous product, generates wealth, however it isn’t effectively redistributed,” Manuel Cordeiro, the mayor of Sao Joao da Pesqueira, informed AFP.

Some are calling for a steeper reduce to manufacturing that might contain pulling up vines, as is at the moment being carried out within the Bordeaux area in southwestern France.

“If we don’t create shortage, we’ll by no means handle to maintain costs beneath management,” mentioned Oscar Quevedo, a 41-year-old winemaker who has taken over the household enterprise of round 100 hectares.

Producing wine within the Douro, with its steep slopes and arid local weather, “may be very costly” so transferring upmarket is critical to outlive and “market a wine that’s worthwhile”, he added.

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