WEAK DOLLAR HELPS WINE EXPORTS

by Cat on March 10, 2011

It was a big year for wine exports in 2010, up more than 25% from 2009. Over 112 million gallons were shipped and the average income per gallon was $10.19.

When I go to the store or out to have a drink at a wine bar, I often find that the most affordable choices are from Australia, Chile, and New Zealand. So why is nearly 20% of all California’s wine production sold abroad?

Australia faced a wine glut and a drought, and that lead to many vineyards being pulled up to keep their prices at a sustainable level. Chile dealt with a major earthquake. Overall there were reduced supplies by these and other countries, including France.

Exports could remain strong in the next few years if the dollar continues to be weak, which makes U.S. products more affordable around the world. That’s because other currencies are worth more dollars so, while we are pulling in a record amount of American dollars, they are actually spending less.

It all works out okay as long as we don’t have to buy anything from them.

For more on how this plays out at the local wine growing level, follow this link.

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