Flagging prices for bulk Beaujolais

Thursday March 21 2019 by Vitisphere

The return to more substantial production volumes in 2018 has brought bulk prices of Beaujolais down again, due to the multiple retailersThe return to more substantial production volumes in 2018 has brought bulk prices of Beaujolais down again, due to the multiple retailers - Photo credit : DR

Non-nouveau Beaujolais appellation wines, the worst affected of the two categories, posted an average price of €132/hl at the end of February 2019, compared with €167/hl in the previous marketing campaign at the same date. “Some transactions are even significantly below these prices”, said one of the region’s brokers. The decline is lower for Beaujolais-villages with an average price of €156/hl compared to €180/hl last year.

These prices are well below production costs for farms, which are estimated at between €160 and €180/hl, raising fears of further cash flow problems for the current year. “It's devastating, we're going to see more vine pulls”, predicts David Ratignier, vice-chairman of InterBeaujolais and a winegrower himself. “Buyers follow the market, they don't want to pay more than their neighbours; conversely, winegrowers negotiate very little, they can't afford to, they are very fragile”, the broker commented.

Regular sales activity

From a volume perspective, the market now seems to be active after a very calm start to the marketing campaign. For Beaujolais appellation wines, 32,200 hl had been traded at the end of February, compared with 22,500 hl last year; for Beaujolais-villages, 30,000 hl were sold, compared with 36,200 hl last year.

 

 

 

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