Chile Wine Annual Report 2013
Executive Summary:
Chile’s wine production increased in CY2012, as weather conditions in most growing areas were excellent. For CY2013 another slight increase is expected.
Chile has an estimated 8,000 producers of wine grapes. Planted area has increased over 70 percent during the last 8 years.
Production:
Wine production in CY2012 expanded another 20 percent when compared to the previous year reaching an all time record level of 1,255 million liters. Excellent weather during the winter, spring and during the harvest (no rain in the summer months) resulted in a significant production expansion. According to an industry contact, with the 2012 production volume Chile became the seventh largest wine producer in the world. Prices paid to wine producers in 2012 increased another 20 percent. Larger wineries buy either wine or grapes to smaller producers who normally do not crush the grapes into wine or have a very small operation and do not bottle wine; instead they sell their wine in bulk to larger processors. The large price increase for grapes and or wine, for the last two years is another positive factor in total output, as was indicated by an industry analyst. As a result of higher prices for bulk wine paid to a significant number of small farmers induced them to improve the work done to the vines (like pruning, watering and other labor) resulting in an increase of yields and production.Out of the total wine production, Cabernet Sauvignon represents 33 percent of the total, Sauvignon Blanc a 13.5 percent, followed by Merlot with 11.9 percent. Other varieties like Chardonnay, Carménere and Syrah represent less than 10 percent each. An 81 percent of total wine production in 2012 is with Denomination of Origin (DO) type and 14 percent without DO type. A 69 percent of total production is of the red varieties.
For CY2013 wine production is expected to be similar or slightly larger than last year, as weather again has been favorable in most production areas. Rain during last spring (December 2012) which had a bad effect on most fresh fruit production, did not affect wine production.
For the coming years, no significant expansion in production is expected as over 95 percent of the planted area is in the full production stage. Consequently, production increases will depend on weather and management of the vineyards and on future expansion or replacement of lower producing vineyards.
