Portuguese wine exports grew by almost ten percent in volume in the first half of the year, but increased by barely one percent in financial return. In the first half of 2024, 171.5 million liters were exported, worth 452.4 million euros, with an average price of 2.64 euros per liter. This resulted in a year-on-year decrease in the average price of 6.52%.
The main export markets are still France (53.4 million euros), the United States (50.1 million euros) and Brazil (38.9 million euros). In terms of volume, France retains the lead (17.5 million litres), followed by Spain (16.4 million litres) and the Portuguese West African former colony Angola (15.3 million litres).
According to the association, “this reflects the pressure on supplies felt in the global wine sector”. Particularly in markets where demand for cheap wine is high, such as in certain parts of Asia, Portuguese wine is being sold at increasingly lower prices, adding to the economic pressure on producers.
The Portuguese wine sector is therefore still facing significant challenges that are endangering the future of wine growers. The president of the Portuguese Wine Association called the increase in export volumes important, because it is happening despite the wine sector having to deal with a surplus of stock in wineries, especially in the Douro region, which is known worldwide for its port wines.
In recent years, wine production has increased by a few percent, while demand has stagnated or even decreased, both within Portugal and internationally. In addition, climate change plays an important role. Unpredictable weather conditions have led to both quantitative and qualitative losses in the grape harvest.
This crisis not only has economic consequences, but also threatens to cause a social catastrophe, especially in traditional wine regions such as the Douro. Winegrowers fear for the survival of their businesses, and if the situation does not improve, it could lead to unemployment and migration from the countryside to the cities, which in turn threatens the social fabric of these regions.
The Portuguese government and wine sector are desperately looking for solutions to alleviate this crisis. One of the proposed measures is to stimulate exports to new markets, especially outside Europe.