Guillermo García: “The Argentinean wine industry is in a dire situation”

Friday January 22 2016 by Vitisphere

As Argentina prepares to harvest the 2016 crop, the challenges facing the wine industry remain overwhelming. Spiralling labour costs, increased competition and rampant inflation are just some of the hurdles the industry must overcome, on top of surplus wine supplies that have failed to decline despite the drop in inventories. At a recent briefing of the situation, the chairman of the country’s wine and vine institute INV, Guillermo Garcia, did not beat about the bush: “The wine industry is in a dire situation”. Claiming business was “paralysed”, he stressed that the government’s objective was to reduce the sales potential of Argentinean wines by 2 million hectolitres. As a reminder, Argentina produced 13.36 million hectolitres of wine in 2015.

As Garcia pointed out, 2015 was a small crop: “Everything is pointing to declining production volumes again in 2016. Nature has given us a helping hand in reducing production but we still need to find a way of removing 2 million hectolitres, otherwise recovery of our industry will continue to be stifled. […] We are losing thousands of jobs in the countryside, which cannot be seen but is extremely serious”.

Combing Argentinean supermarket shelves in search of substandard wines, the INV is on the warpath in a bid to clean up its domestic market. But the real challenge is in export markets where competitiveness is the result of a subtle equilibrium and not just the determination of the industry. 


Source: Vitisphere; Photo: Guillermo García’s twitter account


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