AOC Bordeaux in a crisis - many producers are worried

The AOC Bordeaux, which consists of 120.000 hectares and thousands of wine producers, produced 4.75 million hectoliters in 2009, compared 5.65 million hectoliters in 2007. "I think that 50 to 60 percent of the producers are in serious trouble," says Didier Cousiney, who cultivates 30 hectares in Langon. "My son and the workers get paid, but there is nothing left for me. We spent less when it comes to ages, equipment, technology and resources."

Chantal Seguillon, co-founder of group of Bordelaise winemakers draws the following conclusion: "Since 2001, when the crisis grew more severe, we have continuously been experiencing a decrease in exports to European markets. Turnover sales have also suffered on domestic markets since then. Only big retail markets are buying our wines, but they pay ridiculous prizes."

Producer Jean Renaud agrees: "The Castel group, one of our largest negotiants in Bordeaux, sells Bordelaise wines for 1.30 Euros per bottle to China. That is less than our costs." Another producer, Didier Cousiney, explains: "I would like to give an example: Just now, a negotiant made me the following offer. He offered me 700 Euros for one of my red wine barrels (900 liters) of the 2009 vintage. But, the costs per barrel are at 950 to 1.050 Euros."

Statistics of the Bordeaux Chamber of Agriculture confirm these statements. Bulk wines, which realize 750 Euros per barrel on average, are, thus, most affected by the collapse.

"What shall we do," wonders Jean Renaud. "Either the prize rises, which is vey unlikely, or we have to increase yields if we are allowed to do that. I harvested 65 hectoliters per hectare in 1998. By now, the prize for this wine has decreased by 30 percent, and my harvest per hectare dropped by 20 percent. Where will this lead us."

The true dilemma shows if you take a closer look at the results. In many companies, spouses and other family members almost or completely work for free. There is no money left to renew supplies and technology. Furthermore, winemakers are selling their vineyards to make ends meet. That is the current situation at the turn of the year 2009/ 2010. However, experts are expecting the drastic results of the crisis in the following 2 years.

The Bordelaise Grand Crus, the Top 100, are not affected by the crisis. Those in the Château wine estates, which are on equal terms with the Grand Crus, should not be worried. For their wines are popular worldwide, have a respective reputation and benefit from Parkers evaluations, as of speculation-inspired demand at Christie?s, Sotheby?s and other auctions. As a result, the Château wines estates manage to sell their wines to negotiants and often even to preset sales conditions for the years to come. Even though the price level has decreased since its peak in 2005, when the price per bottle was at 500 Euros, they were able to charge prices that ensure the survival of the Châteaux. (aw.yoopress / translator e.meissner)