There is a troubling trend in the world. Due to the excess of wine production, farmers are facing serious problems. As a result, vineyards are being destroyed in Australia, Bloomberg reports.
For example, one of the grape growers in Australia destroyed 50% of his vineyard in 2023, which covers an area of 14 hectares. It is located in the Riverland region in the south of the country. Had he not made this decision, his losses would have amounted to $23,000. In the future, he plans to completely exit the winemaking business, as this sector has become economically unviable.
According to the CEO of the Riverland Wine association, within three years, a quarter of winemakers will cease their activities.
The problem of excess wine production is not only observed in Australia but also in other countries. Last year, wine production reached a 60-year low, yet there is still an oversupply in the markets.
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