Sunday, October 30, 2011

Harvest 2011: Cooperatives optimistic about the harvest and prices

Cooperatives are optimistic with a 2011 harvest more abundant and prices are expected to continue, said Wednesdaythe Confederation of Cooperatives wineries of France (FVAC).

"We find the smile after three years of crisis that left the tenantsin a terrible cash position," said the AFP Denis Verdier, president of the FVAC.

The harvest forecasts show 50 million bushels harvested in 2011, an increase of 11% in volumes compared to last year, saidVerdier.

The French higher volumes, however, should not lead to lowerprices, assured the head. Crops in Europe especially in Italy and Spain, the two main competitors in France, are in decline, he said.

Prices paid to producers are normally persist, according to Mr.Verdier who believes that some appellations such as Cotes du Rhone are expected to increase their prices by 5 to 10%.

Last year at this time the FVAC requested an increase of "at least 10%" of rates, especially for entry-level wines. These increases were achieved or exceeded for up to 20%, saidVerdier.

According to him, the consumer has been little affected by these increases, the retail and trade have eroded margins.

© 2010 AFP

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