wine shortage
Wine Shortage
Vocabulary
| wine | drink (2) | rethink |
| choice | fiance | firm |
| warn | globe/global | earth |
| world | planet | shortage |
| prevent | shortfall | great/greater/greatest |
| since | record (3) | begin/began/begun |
| problem | production | fall (2) |
| demand | reach | rise/rose/risen |
| peak | supply | outweigh |
| demand | case (2) | steady/steadily |
| decline | drop | low/lower/lowest |
| level | decade | exceed |
| rough | roughly (2) | same |
| different | amount | whole |
| production | blame | poor (2) |
| rich (2) | weather | industry |
| capacity | output | producer |
| like (2) | already | main |
| driver (2) | growth | consumer |
| consumption | double | triple |
| once | twice | three times |
| country (2) | likely | become |
| now | for now | large/larger/largest |
| about | most | follow |
| more | less | ask |
| all | important | question |
| price | guess | margin |
| marginal | because | industry |
| respond | review (2) | weather |
| factor | of course | succeed (2) |
| season | possible | prune (2) |
| irrigate | fertilize | boost |
| report | author | predict |
| short | tall | short-term |
| long-term | previous | vintage |
| inevitably | lead | high/higher/highest |
| reassurance | of a sort | love |
| go up | before | shelf |
| bare | do all it can |
Video
Transcript
Global Wine Shortage
Could it be time for wine drinkers to rethink their drink of choice?
The US finances firm, Morgan Stanley, has warned of a global wine shortage.
They say it’s the greatest shortfall since records began 40 years ago.
Supply and Demand
The problem is production is falling and demand is rising. Global production reached its peak in 2004. Supply outweighed demand by about 600 million cases.
Production has been steadily declining since then, and last year it dropped to its lowest levels in four decades.
Demand exceeded supply by at least 600 million cases. That’s roughly the same amount of wine the whole of the UK drinks in two years.
Bad Weather
The fall in production can be blamed on poor weather in Europe, which produces 60% of the world’s wine. Industry capacity here has been declining for the past decade.
Output from newer producers like Argentina, Chile, and New Zealand, has already peaked. But global demand is rising.
Wine Consumption in China
The US and China are the main drivers of growth. Consumption in China has doubled, twice in the past five years. The country is likely to become the world largest consumer by 2016.
For now, France and the US consume the most — about 12%. Italy and China follow. Then Germany, Russia, and the UK.
Wine Prices
More people drinking wine, more people asking the all important question: will prices rise?
“My guess is that they will only go up marginally, because I think the industry will respond,” says Michael Franz, editor of Wine Review Online. “Weather is a factor, but of course in the succeeding season it’s also possible to prune, to irrigate, to fertilize in a way that can boost production.”
Vintage Wine
The report’s authors predict that in the short term, demand will be supplied by previous vintages. But as consumption inevitably turns to the 2012 vintage, the shortfall could lead to higher prices.
Reassurances of a sort for wine lovers then: prices will go up before shelves go bare. And the industry will do all it can to prevent that from happening. Emily Thomas, BBC News.
Questions
1. There is a “problem” in the wine industry. True or false?
2. Is this good or bad?
3. Has this always been the situation or has it changed?
4. Why has wine production been declining since 2004?
5. Wine production is increasing in Argentina, Chile, and New Zealand. Is this correct or wrong?
6. What are the main wine markets?
7. What can you say about wine consumption in China?
8. Stores and shops determine the price of wine. Yes or no?
9. “My guess is that they will only go up marginally, because I think the industry will respond.” What did the wine reviewer mean?
10. How will the demand for wine be met in the short-run (short-term)?
11. What might happen in stores in a few years?
A. I like wine. I drink wine. True or false?
B. Wine is very popular in my city. Yes or no?
C. Does your country or region produce wine?
D. Is wine an important industry? Is it big business?
E. Is more wine being produced and exported to the China and the US?
