Argentinian bulk wine exports plummet in first half of 2018, while imports also nosedive.
Argentina has seen its bulk wine exports plunge by over a third (34%) in the first half of 2018, with a resultant 23.4% nosedive in value, leaving the price close to $1.70 a litre.
Shipments to 14 out of 15 of Argentina’s top markets dropped, from over 17 million litres to barely 11.3 million litres according to Argentinian customs figures. Over the same period, Argentina’s bulk wine imports crashed by 96%, from 52 million litres to a mere two litres due to the decline of Chile, the sole supplier during the first half-year of 2018. Spain was the only country to see its imports of Argentinian wine increase, up to one million litres, making it the third largest designation for the South American country.
The UK remained Argentinas biggest bulk wine market, importing just over five million litres, a drop of 6%, while the US was the second largest market with 2.4 million litres, recording a hefty 47% decline . At some distance from the other countries, Belgium also posted a 55% drop in Argentinian bulk wine shipments, while Japan was down by 65%, Denmark by 62% and Germany down by 22%.
The slump in Argentinean exports was less dramatic in value terms, decreasing by 23.4% to $19m, compared to almost $25m 25 million invoiced during the first half-year of 2017.
However, the UK bucked the downward trend and gained some market share, seeing its value increase by 5.7% to reach close to $9m, followed by the US with $5.6m a drop of 27%. The combined total of the UK and the US accounted for over three quarters (76%) of the overall value.
Trailing far behind are Belgium and Japan, which halved their investment in Argentinian bulk wine. France completes the list of leading five markets with a slight increase in value, up by 4%, while Spain ranks eighth accounting for $463,0000 dollars, a 200% increase, but behind Germany and Denmark. The average selling price to Spain plunged by almost 60% dropping from $1.07 to 45 cents/litre. It is the second lowest price within the top 15 markets, behind Peru’s 42 cents/litre.
Conversely, the US saw its price rise by 38% up to $2.30 per litre the second highest price after the $3.47 per litre paid by Switzerland. Meanwhile, bulk wine in Japan, France and Belgium, among others, witnessed a significant rise in price.
Source:Vinex Market IQ – 2018-08-29