Monday, January 6, 2020

Which countries export most of their wine production?

Exports are of interest to most wine-producing countries, even if only as a national revenue stream. When a country is in a good location for wine production, then that production will usually exceed local consumption. The excess can then be exported to places where wine is harder to produce.

An interesting question, then, is how much of each country’s wine production is exported. For example, it has been noted by Vinex that: despite being sixth largest producer in the European Union, Romania exports less wine than does Sweden. Clearly, exports are not a big thing for the Romanian wine industry.


The data graphed below come from the OIV database, which has collected worldwide data since 1995 (ie. the past 25 years). I have looked only at countries with (almost) complete data for both “Wine Production” and “Wine Exports” up to 2017; and I have excluded those countries where exports exceed production (ie. imports + re-exports are the dominant form of export). This results in 41 countries, 22 of which appear in the following graphs.

Of the 41 countries, one third have changed in one consistent direction through time, either increasing or decreasing their export percentage. Three other countries changed between the first and second halves of the time period.

We can start this survey by looking at the three biggest wine producers in the world (see Global wine exports). Both Spain and Italy have increased their export percentage, while France has done so to a lesser extent. Only Spain regularly exports >50% of its production these days, indicating that the locals in these places are consuming quite a lot of wine.

Export percentages of wine for France, Italy and Spain

Next we can note three other European wine producers that have shown some increases in export percentage during the time period. Only Germany has been consistently increasing; and all three seem to have reached a plateau. Germany is, of course, also one of the world’s biggest importers of wine, especially from Italy and Spain (see Global bulk wine routes visualized), which makes its move into exporting an interesting trend (much of it going to the Netherlands, the UK and the USA). Both Germany and Portugal come close to exporting 50% of their wine production.

Export percentages of wine for Austria, Germany and Portugal

As noted above, Romania exports very little of its wine production (as shown in the next graph), usually only 3-4% these days. Some of the other eastern European wine producers, on the other hand, have greatly varying export percentages. Bulgaria has often exported >50% of its wine production. On the other hand, Uzbekistan had a big export boom between 2005 and 2010, and Czechia had one between 2008 and 2015. The latter has since returned to c.10% exports.

Export percentages of wine for Bulgaria, Czechia, Romania and Uzbekistan

In contrast to Czechia, its former compatriot Slovakia has steadily increased its wine export percentage this century (shown in the next graph), so that it is now consistently >50%. Further south-east, Georgia has experienced a revival of its wine industry since 2007, so that it might now exceed 50% exports. Lebanon showed an increase until 2010, although it has since held steady at 20-25% exports.

Export percentages of wine for Georgia, Lebanon and Slovakia

The big losers in terms of wine exports have been the former big exporters to France, all located in northern Africa: Algeria, Morocco, and Tunisia). Their bulk wine was used to beef-up some of the lighter French wines; and in recent decades this role has been replaced by wine from first Italy and now Spain. So, these African countries now export <3% of their wine production.

Export percentages of wine for Algeria, Morocco and Tunisia

The so-called New World wine countries of the southern hemisphere have all grown their wine industries in recent decades (as shown next), and all except South Africa now export >50% of their wine production. Indeed, for Chile and New Zealand the exports sometimes reach 90% of production, which is by far the greatest in the dataset. I have looked at exports from Australia and New Zealand in more detail in previous blog posts.

Export percentages of wine for Australia, Chile, New Zealand and South Africa

Finally, we can look at those two countries with relatively large wine productions but small export percentages, and with little recent increase in that percentage: Argentina and the USA. The locals are, indeed, rather thirsty. I have also previously looked in more detail at United States wine imports and exports.

Export percentages of wine for Argentina and the USA

So, the answer to the question posed in the title appears to be: Australia, Chile, Georgia, New Zealand, Slovakia, and Spain, although several other wine-producing countries come close.

2 comments:

  1. Here in California, Argentine Malbec is ubiquitous in fine wine stores and grocery stores.

    The USA is the top export market -- fostered by a national economic policy encouraging exports.

    Source: "Wine exports volume from Argentina by destination country | Statista (2020)"

    URL: https://www.statista.com/statistics/598280/global-export-volume-of-argentine-wine-by-market/

    Let me cite the U.S. Department of State website section titled "U.S. Relations With Argentina: Bilateral Relations Fact Sheet."

    URL: https://www.state.gov/u-s-relations-with-argentina/

    "U.S. goods and services trade with Argentina totaled an estimated $26.8 billion in 2018. U.S. exports to Argentina include machinery, mineral fuels, aircraft, and plastics. U.S. imports from Argentina include aluminum, WINE, and mineral fuels."

    The Argentine economy is a mess.

    Citing an article titled "High Hopes for Argentina's Revival Are Dashed" in The Wall Street Journal (May 9, 2019).

    URL: https://www.wsj.com/articles/high-hopes-for-argentinas-revival-are-dashed-11557406800

    ". . . President Mauricio Macri, a market-friendly businessman [elected in 2015] . . . pledged to easily tame inflation and turn Argentina into an export powerhouse.

    ". . . poverty has been on the rise . . . Access to foreign credit dried up, sparking a currency crisis that pushed inflation to 55%, among the highest in the world . . . with a contracting [recessionary] economy posting its worst quarter in almost a decade at the end of last year."

    Citing an article titled "Why Argentina Faces an Economic Crisis. Again" in The Wall Street Journal (September 25, 2019).

    URL: https://www.wsj.com/articles/why-argentina-faces-an-economic-crisis-again-11569422388

    "Nearly four years after Mr. Macri took power, Argentina is repeating a pattern that has dogged Latin America’s third-biggest economy for over 70 years. It is running out of hard currency while grappling with high inflation and economic contraction. Again.

    "The country of 44 million is heading toward possible default on about $115 billion on foreign-currency bonds just 18 years after its last major crisis, when it defaulted on $100 billion. It owes at least $44 billion more to the International Monetary Fund, which it will try to restructure.

    "The country has received close to 30 IMF aid packages over the past 60 years, most with strict austerity conditions that it has often breached. Argentina has reneged on debt at least eight times in more than 200 years.

    " 'Argentina seems trapped by its own history,' said Daniel Marx, an Argentine economist who helped renegotiate its foreign debt in the early 1990s.

    "What economists consider perpetual mismanagement . . ."

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    1. Footnote.

      The Argentines are thirsty. They're quenching some of it in other ways.

      "In 2018, per capita consumption of wine in Argentina amounted to 18.86 liters per person, down from 20.25 liters per person recorded a year earlier."

      Source: "Wine consumption per capita in Argentina 2018 | Statista (2020)"

      URL: https://www.statista.com/statistics/711407/consumption-per-capita-of-wine-argentina/

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