South American market insights

Country in Focus: Brazil

Brazil is mainly an imported market, importing 83.4 million litres of wine in the year ended July 2016, with Chile and Argentina the main countries of origin. Australia sits at number 10 in bottled wine imports, although exports have dropped off slightly in the past 12 months. The most popular varieties for export to Brazil are Shiraz and Cabernet Sauvignon, making up more than 80 per cent of the label claims.

Although not a major contributor to global wine exports, Brazil does have its own burgeoning wine sector with six main wine regions contributing to supply. 

Small South American harvest puts pressure on global pricing

This month’s Ciatti Global Market Update offers a closer look into each of the major wine producing nations across the world, including insights into Brexit, as well as the harvests in California and Europe.
Ciatti also reports that Argentina and Chile’s recent harvests have been hampered by El Niño conditions. Chile’s crop is down 25 per cent compared to the year before and Argentina’s harvest is the third below-average crop in as many years. This pressure on supply is expected to impact bulk prices globally. However, the report suggests quality of some varieties which thrive in cooler temperatures have benefitted from these conditions, for example Sauvignon Blanc in Chile.