Argentina's wine industry faces deepest crisis in two decades

[VINO]

It is very sad what is happening to the wine industry in Argentina. Many wineries and vineyards are going under. Domestic consumption has fallen off a cliff and exports are falling more than 20 year low.

I wonder if something else is going on or with the overvalued peso Argentine wine is just too expensive. YoY decline of 6.8%. Argentina is dependent on the USA wine export market.

Argentina’s wine industry faces deepest crisis in two decades - UPI.com

Argentina's wine industry is undergoing a crisis, as wineries face severe financial strain, domestic consumption drops sharply and exports fall.

www.upi.com

 

[Finance Prof]

Good old supply and demand problem. The wineries raised prices too high and surprise surprise people don't think it's worth it. Also with the recession in Argentina and the cut in spending, wine is one of the first things people will cut off if they have to. Also wine has expanded all over the world so a lot of competition as the article says.

 

[ElQueso]

Trump can be blamed for part of this. He put a tariff on Argentine wine by about 10% which didn't' help. What is happening in Argentina is sad. High inflation, years of stagnating salaries not keeping up with inflation and sharp decline in their purchasing power. Look at utility bills. Some have jumped up 400% in 2 years.

What do you think people will pick? Heat or wine? Argentina simply isn't competitive with their artificial exchange rate.

 

[Cheap Bastard]

It is very sad what is happening to the wine industry in Argentina. Many wineries and vineyards are going under. Domestic consumption has fallen off a cliff and exports are falling more than 20 year low.

I wonder if something else is going on or with the overvalued peso Argentine wine is just too expensive. YoY decline of 6.8%. Argentina is dependent on the USA wine export market.

Argentina’s wine industry faces deepest crisis in two decades - UPI.com

Argentina's wine industry is undergoing a crisis, as wineries face severe financial strain, domestic consumption drops sharply and exports fall.

www.upi.com

It's not just the wine industry. You name it and anything made in Argentina is going belly up. Car plants are all stalling or going to shut down. Carrefour is planning to completely pull out of Argentina. Hell the Economic Minister of Argentina said in an interview he never in his life bought clothes in Argentina and it was a huge rip off. Apply that same thing to anything made in Argentina. Much of it is poor quality and very expensive.

Not going to be able to compete with China. So the question remains where are all those jobs going to come from that are lost in the manufacturing sector? Add in the loss of public sector jobs. Private sector is also laying off now. This is a recipe for disaster.

 

[lark]

It's not just the wine industry. You name it and anything made in Argentina is going belly up. Car plants are all stalling or going to shut down. Carrefour is planning to completely pull out of Argentina. Hell the Economic Minister of Argentina said in an interview he never in his life bought clothes in Argentina and it was a huge rip off. Apply that same thing to anything made in Argentina. Much of it is poor quality and very expensive.

Not going to be able to compete with China. So the question remains where are all those jobs going to come from that are lost in the manufacturing sector? Add in the loss of public sector jobs. Private sector is also laying off now. This is a recipe for disaster.

I saw Caputo yesterday bragging how he never bought in his life any clothes from Argentina. Do you think with their rush to open up the market they would dare allow imported wines into Argentina. I guess now the costs would be much less than Argentine wines.

 

[ben]

Trump can be blamed for part of this. He put a tariff on Argentine wine by about 10% which didn't' help. What is happening in Argentina is sad. High inflation, years of stagnating salaries not keeping up with inflation and sharp decline in their purchasing power. Look at utility bills. Some have jumped up 400% in 2 years.

What do you think people will pick? Heat or wine? Argentina simply isn't competitive with their artificial exchange rate.

I wonder what would happen to the local wine industry was opened up so that Argentina could import all the great wines from around the world. I don't really think Milei is a true Libertarian. Argentina is totally dependent on the USA, international banks, IMF. Before he spoke out about all of these endless loans but reality has set in for him. Exchange rate is artificial. Sooner or later it will catch up like it always does in down cycles. Of course it helps that the US is helping but that can't go on forever.

There are really some fabulous cheap wines around the world. If Milei allows them to flood in like the cheap Chinese clothing then the wine industry in this country is probably doomed.

Locals mostly stick with Argentine wines because international wines were too expensive but this may not be the case.

 

[Finance Prof]

I wonder what would happen to the local wine industry was opened up so that Argentina could import all the great wines from around the world. I don't really think Milei is a true Libertarian. Argentina is totally dependent on the USA, international banks, IMF. Before he spoke out about all of these endless loans but reality has set in for him. Exchange rate is artificial. Sooner or later it will catch up like it always does in down cycles. Of course it helps that the US is helping but that can't go on forever.

There are really some fabulous cheap wines around the world. If Milei allows them to flood in like the cheap Chinese clothing then the wine industry in this country is probably doomed.

Locals mostly stick with Argentine wines because international wines were too expensive but this may not be the case.

If they opened up the market it would cause some serious problems with the Argentinean wineries. The problem is that many of them are overpriced now. There are some excellent wines in Chile. Doubt Milei would open it up but then again who knows. He doesn't particularly care about the local industries.

 

[ElQueso]

It doesn't help that many around the world are cutting back on alcohol consumption. The younger crowd doesn't see to be drinking as much as they did before. So it's a 1, 2 punch with disposable income and also cutting back on alcohol.

 

[CraigM]

The younger crowd doesn't see to be drinking as much as they did before.

Kids these days, geez 🙂

 

[Will I Am]

Kids these days, geez 🙂

Hell at least some wine coolers. Bartles and James. Have these kids have no shame?