Wine industry in Spain facing difficulties

Surplus grape harvest and the economic crisis could damage wine sector in Spain

With just over 2 months to go until grape harvesting begins the wine sector in Spain is facing a critical situation due to surplus grape production coupled with the reduction in prices due to the fall in demand for wine in the Spanish market. The problem appears to affect all ranges of wines even high quality brands.

Agricultural organizations and cooperatives have asked the government to impose urgent measures to eliminate or reduce this ‘surplus’ and to help wine producers earn a better market price.

The Ministry for Rural Affairs has decided that the distillation of wine for alcohol can take place a month earlier beginning on 1st August.

During the last grape harvest the total production of wine was 40.5 million hectolitres compared to the record of 50 million obtained in 2004.