Global Wine Report Final Aug2006.PDF

Table of Contents

Executive Summary .......................................................................................................... 3

World Wine Production ................................................................................................... 4

U.S. Wine Production ....................................................................................................... 5

U.S. Wine Consumption ................................................................................................... 8

Recent Issues Affecting the U.S. Wine Industry ............................................................ 8

Trade Policy and the U.S. Wine Industry ....................................................................... 9

U.S. Wine Exports ........................................................................................................... 10

Competitive Environment .............................................................................................. 11

Largest U.S. Wine Export Markets............................................................................... 12

United Kingdom........................................................................................................ 12
Canada....................................................................................................................... 13
Japan.......................................................................................................................... 14
Netherlands ............................................................................................................... 16
Germany.................................................................................................................... 17

Competitor Countries for U.S. Wine ............................................................................. 18

France........................................................................................................................ 18
Italy ........................................................................................................................... 20
Australia .................................................................................................................... 21
Spain.......................................................................................................................... 22
Chile .......................................................................................................................... 24
South Africa .............................................................................................................. 25
Argentina................................................................................................................... 26

Appendix .......................................................................................................................... 28

Additional Information ................................................................................................. 28
Country Export and Import Valuation Explanation...................................................... 28
Trade Data Comparison................................................................................................ 30
Data Updates................................................................................................................. 30
Sources.......................................................................................................................... 31

World Wine Production

Figure 1. Major Wine Producing Countries

Million Hectoliters

France

Italy

Spain

United States

Argentina

Australia

South Africa

Germany

Chile

rtu

2003/04

2004/05

2005/06

Sources: Global Agricultural Information Network reports, USDA, Department of the Treasury, Alcohol and Tobacco Tax and Trade
Bureau, and the EU Report on the Wine Sector. Official marketing year for France, Italy, Spain, and Portugal is August/July
beginning 2001/2002, marketing year for Southern Hemisphere countries is January/December. One hectoliter equals 26.42 U.S.
gallons, or 11 cases. One case contains twelve 750 ml bottles.

A discussion of wine production in the United States begins on page 5. European Union
(EU) wine harvest is estimated to be 173 million hectoliters, 12 percent less than the
previous year.

Under the EU’s wine regime, the planting of vines is strictly regulated

and controlled in terms of acreage and allowed varieties. Controls remain in place to
encourage the production of quality wines while discouraging the production of those of
poor quality. New plantings of wine grapes are prohibited until July 21, 2010 except
under certain circumstances (for example, in some areas old grape varieties are being
taken out and new, more marketable vines are being planted). For more information, see
Global Agricultural Information Network (GAIN)

reports #E23063 and #E34070. Some

New World (non-European) wine producers were expecting a slightly smaller output or
an output consistent with recent years, with the exception of Australia. Australian wine

This report draws from a variety of sources, including Foreign Agricultural Service Post analysis, trade

databases, industry associations, and other commercial analysis, and was compiled by Dorsey Luchok,
Agricultural Economist, under the supervision of Market Access and Analysis Group Leader Laura
Scandurra. The Foreign Agricultural Service, Processed Products Division, is responsible for the forecasts
in this report unless otherwise stated. Additional information is available from the Processed Products
Division. Telephone: (202) 720-6343, Internet:

http://www.fas.usda.gov/agx/ppd/index.htm

“Report on the Wine Sector,” European Commission, Directorate-General for Agricultural and Rural

Development, January 2006, p. 2.

GAIN reports can be viewed at

http://www.fas.usda.gov/scriptsw/attacherep/default.asp

. To view by

country and subject and date(s), select option 1. Option 2 allows the viewer to pick by subject. Option 3
allows the viewer to enter a particular report number.

production for 2005 is forecasted to reach a record level, driven by increasing wine grape
bearing area.

Figure 2. Major Wine Producing Countries, Export Quantity Market Share 2005

Italy

21%

Argentina

Germany

Portugal

Other

10%

South Africa

Spain

18%

United States

Chile

Australia

France

18%

Source: Global Trade Atlas

Some smaller wine producing nations and India have not yet reported their wine exports
to Global Trade Atlas for 2005. In general, it appears that the major European wine
producing nations of Italy, France, Spain, Portugal, and Germany have 64 percent of the
wine export quantity market. The United States has 5 percent. The remaining countries
have 31 percent of the wine export market.

U.S. Wine Production

According to the USDA’s National Agricultural Statistics Service (NASS) Non-citrus
Fruits and Nuts Summary, utilized grape production

for 2005 totaled 7.1 million metric

tons

, up 26 percent from the 2004 crop.

The California crop, which accounted for 89 percent (down from 90 percent during 2004)
of the 2005 U.S. utilized grape production, was up 24 percent from the previous year.
Also for California, wine-type production increased 35 percent from 2004, raisin-type
and table-type production increased 13 percent. The 2005 growing season throughout

Utilized production is the amount sold plus the quantities used at home or held in storage. Utilized

production does not include grapes unharvested or harvested and not sold (National Agricultural Statistics
Service).

Report numbers have been converted from short tons to metric tons.

much of California was characterized by a mild summer that mitigated the affects of large
spring rains. Utilized production increased from 2004 in all grape estimating states
except Arizona, Arkansas, and Texas.

The following chart shows processed utilization for the United States. Processed
utilization is utilized production minus fresh utilization. To download the full Non-citrus
Fruits and Nuts Summary, go

http://usda.mannlib.cornell.edu/reports/nassr/fruit/pnf-

bb/ncit0706.pdf

Figure 3. U.S. Grapes: Processed Utilization

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Million Metric Tons

Wine

Dried

Juice

Canned

Source: National Agricultural Statistics Service, USDA. Grapes canned in 2005 are not included in this
graph to avoid disclosure of individual operations.

The following table shows the California grape crush for 2004 and 2005, with the percent
changes over that time period.

Table 1. 2004-2005 California Grape Crush, In Million Metric Tons

Grape Type

2004 Crush

2005 Crush

Percent
Change

Red wine

1.486

2.027

+36

White wine

1.030

1.379

+34

Raisin

0.659

0.423

-36

Table

0.102

0.096

-6

Total

3.279

3.927

+20

Source: Final Grape Crush Report, 2005 Crop, March 10, 2006, California Department of Food and
Agriculture. Report numbers have been converted from short tons to metric tons.

California grape growers received prices in 2005 for raisin and table grapes that were, on
average, below the 2004 prices. Prices received for red wine and white wine grapes
were, on average, above the 2004 prices. Average per ton prices for the 2005 crop by
type were as follows: red wine grapes, $574.69, up 1 percent from 2004; white wine
grapes, $459.38, up 4 percent from 2004; raisin grapes, $149.00, down 18 percent from
2004; and table grapes, $110.10, down 39 percent from 2004. These price levels have
not been adjusted for inflation. To download the full report, go to

http://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final
/2005/200503gcbnarr.pdf

Figure 4. California Grape Crush, 1996-2005

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Million Metric Tons

White Wine Grapes

Red Wine Grapes

Table Grapes

Raisin Grapes

Source: California Agricultural Statistics Service

According to the National Agricultural Statistics Service - January 2006 release,
Washington wine grape production totaled 110,000 tons in 2005, up 3 percent from 2004.
Growers received an average of $930 per ton for all varieties in 2005, up $5 from 2004.
Of the total wine grapes produced, 53 percent were white and 47 percent were red
varieties. White Riesling showed the largest increase of the major varieties with a 14
percent increase. Chardonnay was the top variety at 26,000 tons or 24 percent of the total
state production. Merlot ranked second at 20,500 tons or 19 percent of the total state
production.

The 2005 growing season in Washington was characterized by a mild winter along with a
long summer. According to the Washington Wine Commission, Washington wine
production in 2005 was 67.5 million liters, up from 7.5 million liters in 1981.
Washington has seen growth in wineries from 19 in 1981 to over 400 in 2006 and is the
second largest wine producing region in the United States for premium wines. To see full
production statistics, go to

http://www.washingtonwine.org/facts.cfm

According to the Oregon Wine Board, Oregon wine grape production in 2005 was 25,000
tons (2004 production was 19,400 tons). The state now has 319 wineries, according to

the Oregon Liquor Control Commission. For further information, go to

http://www.oregonwine.org/

The growing season for the New York wine grape crop in 2005 was characterized by a
January deep freeze in the Finger Lakes area and late season rains in Long Island and in
the Hudson Valley. Of the 162 thousand tons crushed by wineries and processing plants,
over 46 thousand tons were used for wine crushing, representing a one percent drop from
2004. New York has 239 wineries, an increase from 17 wineries in 1976. New York has
five grape growing regions and nine American Viticultural Areas. New York specializes
in producing table wines and dessert wines. Further information on winery and grape
processing plant production in New York for 2005 can be found at

http://www.nass.usda.gov/Statistics_by_State/New_York/Publications/Statistical_Report
s/03mar/fruitwineries0206.htm

For further information on New York wines, go to

http://www.newyorkwines.org/

Wine production facilities can be found in all 50 states. Specific production data for
2005 in many states can be found on the Department of the Treasury, Alcohol and
Tobacco Tax and Trade Bureau website at

http://www.ttb.gov

U.S. Wine Consumption

Wine consumption in the United States has been rising slowly and consistently over the
last 11 years. Various sources put consumption of wine by American adults at 25 to 33
percent. The core wine drinkers (people who drink wine at least once per week) make up
about half of this group. The rest are marginal wine drinkers. According to

Euromonitor

International

, U.S. yearly per capita consumption of wine is 12 liters, up from 10.6 liters

in 2000. While French wine remains popular, market share has been lost to lower-priced
wines from other countries. Americans are drinking more imported wines from countries
such as Italy, Australia, Spain, Chile, Germany, New Zealand, Portugal, and South
Africa.

According to Wine Institute estimates, wine sales in the United States from all sources
grew five percent to 703 million gallons (26.6 million hectoliters) in 2005. The estimated
retail value of wine shipments from all sources to the United States is $26 billion.

Good

growth was seen in wines priced $7 per bottle and above.

Recent Issues Affecting the U.S. Wine Industry

A Supreme Court ruling in the spring of 2005 said that states cannot discriminate in favor
of their in-state wineries by allowing only those local wineries to make shipments via
common carriers to their in-state consumers while prohibiting out-of-state wineries from
making shipments to those same consumers. This ruling directly affected approximately

“2005 California Wine Sales Continue Growth Trend as Wine Enters Mainstream U.S. Lifestyle,” The

Wine Institute, 3 April 2006,

http://www.wineinstitute.org/communications/statistics/sales2005.htm

a dozen states that had such a discriminatory law on the books at the time of the ruling,
although many of the affected states have now taken legislative action to provide for a
level playing field for all domestic wineries. This ruling could potentially benefit small
and mid-sized wineries.

In March 2006, the United States and the European Community concluded the first phase
of an agreement on wine. The agreement provides for mutual acceptance of existing
wine-making practices and addresses labeling issues. Discussions on phase two of this
agreement will begin soon. Further information on this agreement can be found on the
Office of the United States Trade Representative website at

http://www.ustr.gov/Document_Library/Press_Releases/2006/March/United_States_Euro
pean_Community_Reach_Agreement_on_Trade_in_Wine.html

Trade Policy and the U.S. Wine Industry

The marketing efforts of the U.S. wine industry are important tools in the expansion of
exports. However, growth in demand for U.S. wine is also partially dependent on
maintaining and expanding market access, ensuring fair competition, and leveling the
international playing field for U.S. producers and exporters. Subsidies, protectionist
policies, tariffs, and non-tariff barriers inhibit the competitiveness of U.S. wines in some
countries. The World Trade Organization (WTO), multilateral and bilateral trade
negotiations, and organizations such as the World Wine Trade Group (WWTG) are
forums to attempt to reduce these trade barriers.

The major trade barrier faced by U.S. wine exports is high tariffs, which can vary in
many ways including by whether the wine is bottled or bulk, by the type of wine, or by
the alcohol content of the wine. For example, the United Kingdom, the largest market for
U.S. wine exports and a member of the EU, has tariffs on wine products ranging from
€10.9 ($13.97)

per hectoliter to €32 ($41.01) per hectoliter. For a complete list of EU

wine tariffs, please visit

http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm

Other countries with high import tariffs for wines include Russia, Japan, Hong Kong,
Korea, and Thailand. Specific tariff information for many countries can be found at

http://www.trade.gov/td/tic/tariff/country_tariff_info.htm

In addition, high value added taxes (VATs) and excise taxes can be applied. To again use
the United Kingdom as an example, excise duties range from £166.70 ($315.10) per
hectoliter to £223.62 ($422.69) per hectoliter, with some types of sparkling wines
accessed an excise tax based on the amount of alcohol in the product. Other countries
with high VATs and/or excise taxes on wine include Chile, China, France, Japan, Russia,
Thailand, and South Africa.

Countries such as Canada and Sweden have nationwide monopolies on alcohol. The
importation of alcoholic beverages into Canada is strictly controlled by a Liquor Control
Board (LCB) for each province. Wine exporters are required to have their products listed

All conversions are based on the exchange rates on May 18, 2006

by the LCBs and have a registered agent to provide marketing support. Sweden has
Systembolaget, a government agency that handles all of the over-the-counter sales of
wine, spirits, and full-strength beer through 400 liquor stores in Sweden. Systembolaget
does not have a monopoly on the importation, wholesaling, production and exporting of
wine and spirits.

Other restrictions, such as licensing, import registration, and required testing, cause
additional expenses for wine producers. These restrictions vary widely by country.

U.S. Wine Exports

The United States exported 3.8 million hectoliters of wine and wine products (including
cider, fermented beverages, and wine must) during 2005, a 15 percent drop from 2004.
The United States exported $659 million of wine and wine products during 2005, which
represented a decrease of 17 percent from 2004.

By quantity, the top market for the United States, the United Kingdom, decreased 42
percent above the year before. Canada, the second highest export market for the United
States, increased by 9 percent in quantity. Italy ranks as the United States’ third top
market after purchases increased 262 percent during 2005. A U.S. wine producer sends
bulk wine to Italy for bottling and ships the product to other parts of Europe from there.
Japan ranks fourth and decreased 44 percent from the previous year. Germany continues
to rank fifth and decreased 11 percent from 2004.

Figure 5. U.S. Wine Exports by Quantity

100

120

140

160

Million Liters

United Kingdom

nad

Italy

Japan

Germany NetherlandsDenmark Mexico

Belgium

ede

2003

2004

2005

Source: U.S. Department of Commerce

Nations in the EU-25 represent 49 percent of the U.S. wine exports in value and 57
percent of the U.S. wine exports in quantity. Canada represents 22 percent of U.S. wine

exports in value and 19 percent in quantity, and Japan represents 12 percent of U.S. wine
exports in value and 11 percent in quantity.

Figure 6. U.S. Wine Exports by Value

100

150

200

250

300

Million Dollars

ited

ing

dom

nad

Jap

Italy

NetherlandsGermany Sweden

Denmark Mexico

Belgium

2003

2004

2005

Source: U.S. Department of Commerce

U.S. wine exports rose 4 percent in value during the first three quarters of fiscal year
(FY) 2006 (October 2005 through June 2006), compared to the same time period in FY
2005. U.S. wine exports fell 5 percent in quantity during the first three quarters of FY
2006 compared to the same time period in FY 2005. FY 2005 (October 2004 through
September 2005) U.S. wine exports were $727.6 million, almost unchanged from FY
2004. For all of FY 2006 (October 2005 through September 2006), FAS projects that
value growth of U.S. wine exports will be unchanged from FY 2005.

Competitive Environment

The greatest competition to the market share for U.S. wines comes from the EU-25
nations and some of the New World producers, particularly Australia and Chile.
Discussion of some of the largest competitor nations begins on page 18.

Government assistance to the wine industry in Australia can mostly be found in the form
of export promotion. Wine producing EU nations receive financial assistance through
their individual governments and through the EU agricultural budget. The EU wine
regime, begun during Marketing Year (MY) 2000/01, seeks the enhancement of quality, a
greater market orientation, and the renewal of old vineyards. Appropriations for the wine
sector are as follows: 2005, €1.228 billion ($2.321 billion), 2006 €1.494 billion ($2.823
billion). Products of the wine-growing sector will receive 2.6 percent of the total EU
agricultural budget in 2006. Appropriations for wine increased by 22 percent compared
to 2005. The EU budget includes appropriations for export refunds on products of the
wine-growing sector, storage of wine and grape must, distillation of wine, storage
measures for alcohol, aid for the use of must, permanent abandonment premiums for

areas under vines, and restructuring and conversion of vineyards. For more information,
see GAIN reports #E35005, #E34076, #E35053, and #E36074.

Largest U.S. Wine Export Markets

United Kingdom

Production: 19 thousand hectoliters (hl) (2004)
Total imports: $4.2 billion, 12.3 million hl (2005)
Total exports: $250 million, 326 thousand hl (2005)

Sources: GAIN report, Global Trade Atlas (GTA)

Wine production in the United Kingdom is minimal due to the variable climate.
Historically, it has been a cottage industry but is slowly becoming a profitable enterprise.
Output is predominately white wine (92 percent) though sparkling, dessert, and red wines
are starting to be produced in growing quantities. The production total for the 2004
harvest was 19 thousand hectoliters.

Consumption of wine in the United Kingdom is increasing at the expense of beer sales, as
the British become more influenced by the lifestyles of continental Europe. Wine
consumption is also positively impacted by rising personal disposable incomes in the
United Kingdom. However, there are concerns by importers that the UK market may be
reaching a saturation point. According to

Euromonitor International

, per capita grape

wine consumption in the United Kingdom was 28.3 liters in 2005, growing from 20.2
liters in 1997.

Figure 7. U.K. Wine Imports by Value

200

400

600

800

1,000

1,200

1,400

1,600

Million Dollars

France

Australia

Italy

Spain

South Africa Chile

United States Germany

New

alan

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

The United Kingdom is the world’s largest importer of wine by value and the largest
market for U.S. wines. By value, the United States is the seventh largest supplier of wine
to the UK market. The top three suppliers by value are France, Australia, and Italy. U.S.

wine exports to the United Kingdom decreased 50 percent in value from 2004 to $150.4
million. By quantity, U.S. wine exports to the United Kingdom decreased 42 percent to
826 thousand hectoliters. Composition of U.S. wine exports by value in the UK market
in 2005 were 85 percent bottled wine, 14 percent bulk wine, and a small amount of
sparkling wines, grape must, cider, other fermented beverages, vermouth, and others.
One possible reason for the decrease in U.S. exports to the United Kingdom is the re-
export of U.S. wines shipped to Italy for bottling to other parts of Europe.

For more information on marketing wine in the United Kingdom, see GAIN report
#UK6002.

Canada

Domestic Wine Sales: 1.12 million hl (2004-does not include sales of imports)
Total imports: $1.07 billion, 2.9 million hl (2005)
Total exports: $44.8million, 162.8 thousand hl (2005)

Sources: Wine Sales Statistics Joint Venture database/Canadian Vintners Association, Global
Trade Atlas

Despite the growing quantity of imported wine available on the Canadian market,
Canada’s domestic wine sector continues to expand. According to

Euromonitor

International

, wine in Canada is mainly produced in British Columbia in western Canada

and Ontario in central Canada. Nova Scotia and Quebec are also developing wine
sectors. Extreme cold in Ontario facilitated the production of ice wine grapes, but
lessened the production of other varieties. The industry is building a strong partnership
with the tourism sector, which is facilitating the marketing of Canadian wine. According
to

Euromonitor International

, per capita consumption of wine in Canada was 14.7 liters

in 2005, up from 11 liters in 1997.

Figure 8. Canada Wine Imports by Value

100

150

200

250

300

Million Dollars

France

Australia

Italy

United States Chile

Spain

Portugal

South Africa Argentina

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

The United States is the fourth largest supplier of wine to the Canadian market by value.
Canada continued to be the number two export market for U.S. wine by value. During
2005, the United States exported $142 million in wine to Canada, an increase of 14
percent over 2004. By value, 79 percent of the wine shipped from the United States went
in the form of bottled product, 9 percent as bulk, 9 percent as other fermented beverage
products, and 2 percent as sparkling wine.

For Canadian wine, there are four main export markets: the United States, Taiwan, Japan,
and France. The United States is Canada’s largest export market with $33.5 million in
sales in 2005, a 38 percent increase over 2004, though sales have not recovered back to
2001/2002 levels yet.

Euromonitor International

reports that wine can be sold in supermarkets in Quebec only,

the other provinces sell wine through government stores or licensed retail agents. The
Canadian wine industry receives generic government support. Canadian associations
promoting international wine sales are the Canadian Vintners Association, and the two
regional wine associations: the Wine Council of Ontario and the British Columbia Wine
Institute. For more information on wine relating to Canada, see GAIN reports #CA2100,
#CA2026, and #CA2021.

Japan

Production: 863 thousand hl (Domestic wine shipments in 2004)
Total imports: $1.09 billion, 2.17 million hl (2005)
Total exports: $53.2 million, 111.75 thousand hl (2005)

Sources: GAIN report, GTA

In Japan, two types of wine are classified as domestic. These include wines that are
produced with more than 50 percent domestic grapes and wines that are fermented in
Japan. Some wine labeled domestic is actually a blend of domestic and imported wine,
and some is made from imported grape must and fermented in Japan. Domestic wine
production has been falling since 1998. Domestic wines target the low-end of the market.
Competition in the low-end of the market has become intense, since several low-price
brands from California, Chile, and Australia are present in this part of the market as well.

Since the red wine boom of 1998, when wine consumption was at its highest,
consumption rates have been flat or decreasing. Mid-to-long term consumption rates
look promising as younger consumers gravitate towards wine. According to

Euromonitor

International

, per capita wine consumption in Japan was 9.9 liters in 2005, down from

14.2 liters in 1998.

Figure 9. Japan Wine Imports by Value

100

200

300

400

500

600

700

800

Million Dollars

Fra

nce

Italy

United States Sp

ain

stra

lia

Chile

Ger

any

ina

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

The United States is the third largest supplier of wine to the Japanese market by value.
Japan is the number three export market for U.S. wine by value. U.S. wine sales are
recovering from the stagnation that followed the wine boom of 1998. While U.S. exports
dropped 2 percent by value in 2005, the large sales gains of 2004 are holding on. By
value, 63 percent of the wine shipped from the United States went in the form of bottled
product, 21 percent as other fermented beverage products, 6 percent as bulk, and 6
percent as vermouth, with small amounts of sparkling wine, grape must, effervescent
wine and cider.

For Japanese wine in 2005, there are three main export markets: the United States,
Taiwan, and Hong Kong. The United States is Japan’s largest export market. U.S.
imports of Japanese wine (mainly sake or rice wine) have risen from $21.7 million in
2004 to $26.4 million in 2005, an increase of 21 percent.

Deregulation of Japanese liquor licensing has expanded the range of retail outlets
handling wine and other alcoholic beverages. The deregulation took place in September
2003, and presents new opportunities as supermarkets and convenience stores find it
easier to sell wine.

The Wine Institute’s “California Wine by the Glass” campaign, in which over 300
restaurants are serving California wines, along with other U.S. promotional efforts,
continue to build awareness of U.S. wine products. Washington wine in particular made
significant progress for placement in Tokyo area hotel and restaurant wine lists. Other
wine producing states are also attracting market interest. For more information, see
GAIN report #JA6501.

Netherlands

Production: None
Total imports: $896.4 million, 3.81 million hl (2005)
Total exports: $162.4 million, 510 thousand hl (2005)

Sources: GAIN report, Global Trade Atlas

Wine is not produced in the Netherlands. According to

Euromonitor International

Dutch drinkers consumed 30.5 liters of wine per capita in 2005, up from 24.2 liters in
2000. Reportedly, older consumers are leading the growth in consumption. Red wine is
the most popular variety, but consumption of white wine and rosé wine is increasing.
New World wines are very popular in the Netherlands.

Figure 10. Netherlands Wine Imports by Value

100

150

200

250

300

350

Million Dollars

France

South Africa Spain

erm

any

Italy

Chile

Australia

Portugal

United States

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

The United States is the eleventh largest supplier of wine to the Dutch market by value.
The Netherlands is the number five export market for U.S. wine by value. By value, 90
percent of the wine shipped from the United States went in the form of bottled product, 8
percent as bulk, with small amounts of sparkling wine, effervescent wine, vermouth,
cider, and fermented beverages. Wine re-exports are significant, with Germany being the
primary destination. U.S. industry sources believe as much as 50 to 75 percent of U.S.
wine products shipped to the Netherlands are trans-shipped to other destinations,
particularly other countries within the EU. Industry sources believe that much of the
drop in U.S. wine shipments to the Netherlands from 2004 to 2005 can be attributed to
bulk shipments of U.S. wine going to Italy for bottling and then being shipped from Italy
to other parts of Europe.

For the Netherlands, there are five main export markets: Germany, Belgium, Japan,
France and the United Kingdom. The United States is the sixth largest market for wine

from the Netherlands. Wine is not produced in the Netherlands, so these products are re-
exports are from another country of origin.

There are no GAIN reports from the Netherlands specifically covering wine, but the wine
sector is mentioned in GAIN reports #NL5029, #NL5005, and #NL4026.

Germany

Production: 9.1 million hl (2005)
Total imports: $2.2 billion, 13.4 million hl (2005)
Total exports: $713.9 million, 3 million hl (2005)

Sources: GAIN report, Global Trade Atlas

Wine production in Germany is forecasted to reach 9.1 million hectoliters in 2005, about
1 million hectoliters less than in 2004 due to adverse weather conditions. Grapes for
wine are found in more than 14 different growing regions. The most prominent wine
growing regions are in the states of Rheinland-Pfatz, Baden-Wuerttemberg, and Hessen.
Due to climate and geography, German wine production can vary significantly in quality
and quantity from year to year. Germany is predominately a white wine region with 64
percent white wine grape areas in 2004. Red wine grapes account for the rest of the
production area, but red wine grape plantings are increasing. Per capita consumption of
wine in Germany was estimated at 20.1 liters for 2004, compared to 19 liters in 2000.
However, per capita consumption of sparkling wine has fallen off, 4.1 liters in 2000
versus 3.8 liters in 2004.

Figure 11. Germany Wine Imports by Value

100

200

300

400

500

600

700

800

900

Million Dollars

Italy

France Spain

NetherlandsSou

th A

fric

Chile

Australia Austria Denmark Greece Portugal United States

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

The United States is the thirteenth largest supplier of wine to the German market by
value. Germany is the number six export market for U.S. wine by value. During 2005,

Figure 12. France Wine Exports by Quantity

100

150

200

250

300

350

Million Liters

United Kingdom

Germany Belgium Net

her

lan

United States

Japan

Canada Sw

itze

rlan

Russia

Denmark Italy

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, French wine export quantities decreased 4 percent in
CY 2005. In terms of value, French wine exports experienced no change from 2004 to
2005. By quantity, major destinations for French wine continue to be the United
Kingdom, Germany, Belgium, the Netherlands, and the United States. According to
Global Trade Atlas, the United States represents 6.9 percent in quantity and 15.4 percent
in value of France’s export market. The U.S. Department of Commerce reports that the
United States imported 6 percent more wine from France in value to $1.08 billion and 4
percent more in quantity to 980 thousand hectoliters in 2005.

U.S. exports of wine to France in 2005 decreased 35 percent in value to $6.7 million and
decreased 31 percent in quantity to 61.5 thousand hectoliters. By value, most of the U.S.
wine exported to France was bottled wine, with small amounts of other fermented
beverages and bulk wine. U.S. wines in France face strong competition from domestic
producers, other large EU producers, and New World producers. However, U.S. wines
are present in large retailers and restaurants, especially those restaurants with an
American theme.

Frustrated by overproduction, shrinking exports, advertising restrictions, an aggressive
anti-alcohol abuse campaign, and changing domestic drinking habits, French wine
makers are pleading for government assistance. The French office of Wines and Vines
(ONIVINS) and SOPEXA had a budget in CY2004 of €15.3 million ($19.6 million) for
export promotion of French wines. For more information, see GAIN report #FR6011.

Italy

Production: 49 million hl (2005)
Total imports: $340.7 million, 1.8 million hl (2005)
Total exports: $3.9 billion, 16.1 million hl (2005)

Sources: GAIN report, Global Trade Atlas

Italy’s 2005 wine production dropped 8 percent from 2004 to 49 million hectoliters, due
to unfavorable weather, with too much rain in the summer and early fall. Italian vine area
continues to fall, but at a slower rate than in the 1980s and 1990s. The 2005 area is
officially reported at 764 thousand hectares, which is about half of the area of the early
1980s.

Per capita wine consumption in 2004 fell below 50 liters for the first time to 49.8 liters.
Thirty years ago this figure was over 100 liters. For a time, the drop in wine
consumption represented a switch to beer, but now per capita consumption of beverage
trends favor low-alcohol or no alcohol drinks.

Figure 13. Italy Wine Exports by Quantity

100

200

300

400

500

600

Million Liters

Germany Un

ited

ing

dom

United StatesFra

nce

SwitzerlandCa

nad

Czech Republic

Austria

NetherlandsDenmark

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, Italy’s wine export quantities increased 4 percent in CY
2005. In terms of value, Italy’s wine exports increased 3 percent. Major destinations for
Italian wine are Germany, the United Kingdom, the United States, France, and
Switzerland. According to Global Trade Atlas, the United States represents 13 percent in
quantity and 25 percent in value of Italy’s export market. According to the U.S.
Department of Commerce, the United States imported 11 percent more wine from Italy in
value to $1.07 billion and 9 percent more in quantity to 2.2 million hectoliters during
2005. Italy has been the top wine supplier to the United States in terms of quantity for
many years.

U.S. exports of wine to Italy increased remarkably in 2005, with increases of 239 percent
in value to $42 million and of over 262 percent in quantity to 521 thousand hectoliters.
Most of the increase was in bulk wine. A U.S. wine producer sends bulk wine to Italy for
bottling and ships the product to other parts of Europe from there.

EU allocations for Italy are mostly spent in southern Italy, where quality wines are still
rare. The Italian Trade Commission (ICE), an agency of the Ministry of Production
Activities, remains the main public institution to provide export and promotion assistance
in foreign markets. There is currently no specific export promotion program for wine,
which is included in the general promotion programs of Italian foods and beverages. For
more information, see GAIN report #IT6005.

Australia

Production: 12.9 million hl (2005)
Total imports: $180.2 million, 347.4 thousand hl (2005)
Total exports: $2.1 billion, 6.9 million hl (2005)

Sources: GAIN report, Global Trade Atlas

The Australian wine industry has experienced strong growth in production and exports
over the past decade. Total wine production in 2005/2006 was 12.9 million hectoliters,
with a projected production level of 12.7 million hectoliters for 2006/2007. This growth
has created oversupply problems and the Australian wine industry is now facing a period
of restructure and reorganization.

According to

Euromonitor International

per capita wine consumption was 29.8 liters per

capita in 2005, up from 25.9 liters in 1998.

Figure 14. Australia Wine Exports by Quantity

100

150

200

250

300

Million Liters

ited

ing

dom

United StatesCa

nad

Ger

any

New ZealandNetherlandsDenmark Belgium

Irela

Japan

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, Australian wine export quantities increased 7 percent in
CY 2005. In terms of value, Australian wine exports increased 5.5 percent. Major
destinations for Australian wine are the United Kingdom, the United States, Canada,
Germany, and New Zealand. According to Global Trade Atlas, the United States
represents 29 percent in quantity and 33 percent in value of Australia’s export market.
The United States imported 4.5 percent more wine from Australia in value to $761
million and nearly 11 percent more in quantity to 2 million hectoliters in 2005.

U.S. exports of wine to Australia increased 12 percent in value to $4.2 million and
decreased 45 percent in quantity to 20.8 thousand hectoliters. Most of the value gains
were in bottled wine with small increases in sparkling wine, effervescent wine, bulk
wine, and cider. However, wines from the United States represent only about 2.5 percent
of total Australian imports of wine by value. In 2004, the United States and Australia
completed a free trade agreement. The agreement went into effect on January 1, 2005.
For U.S. wine exports to Australia, all tariffs were immediately eliminated. For
Australian wine imports to the United States, tariffs will be eliminated over an 11-year
period.

The Australian Wine Export Council (AWEC), a subsidiary of the Australian Wine and
Brandy Corporation (AWBC) is the export promotion arm of the AWBC. AWEC
conducts wine promotion programs in many countries and works closely with the
government’s export promotion arm, Austrade. The Winemakers Federation of Australia
is the main industry body representing the interests of Australia’s winemakers,
representing about 90 percent of Australia’s wine production and about 98 percent of
exports. There are also state and territory wine associations. For more information, see
GAIN reports #AS5018 and #AS6036.

Spain

Production: 33.3 million hl (2005)
Total imports: $154.2 million, 472.4 thousand hl (2005)
Total exports: $1.95 billion, 14.6 million hl (2005)

Sources: GAIN report, Global Trade Atlas

Spain’s 2005 wine vintage is currently estimated at about 33.3 million hectoliters. This
decrease is due to a drought reduced grape harvest. Spain continues to have the most
area under vines in the world. However, Spain’s production ranks third following France
and Italy, and is more variable, since it must contend with poor rainfall and soil. The
downward trend in wine consumption continues, as Spaniards are switching to beer and
soft drinks. According to

Euromonitor International

, per capita wine consumption in

Spain declined to 38.5 liters in 2005, down from 44.1 liters in 1998.

Figure 15. Spain Wine Exports by Quantity

100

150

200

250

300

350

Million Liters

France

Germany Por

tuga

United Kingdom

Italy

Russia

NetherlandsUnited StatesSwitzerlandBelgium

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, Spanish wine export quantities decreased 3 percent in
CY 2005. In terms of value, Spanish wine exports decreased 3 percent. Major
destinations for Spanish wine are France, Germany, Portugal, Italy, and the United
Kingdom. According to Global Trade Atlas, the United States represents 3 percent in
quantity and 10 percent in value of Spain’s export market. According to the U.S.
Department of Commerce, the 2005 import quantity of 417 thousand hectoliters was up
17 percent and import value of $211.4 million was up 14 percent over 2004.

U.S. exports of wine to Spain in 2005 increased 15 percent in value to $1 million and
decreased 23 percent in quantity to 2.6 thousand hectoliters. Most of the value gains
were in bottled wine. However, wine from the United States represents well under 1
percent of total Spanish imports of wine. Spain should be considered only as a specialty
market for U.S. wine imports.

The Spanish Foreign Trade Institute (ICEX) an agency of the Ministry of Industry,
Commerce, and Tourism, is responsible for diversified, government-funded foreign
market promotion programs. For more information, see GAIN report #SP6006.

Chile

Production: 8.05 million hl (2005)
Total imports: $4 million, 61.7 thousand hl (2005)
Total exports: $884.5 million, 4.2 million hl (2005)

Sources: GAIN report, Global Trade Atlas

Total wine production in Chile was 8.05 million hectoliters in 2005, with a projected
production level of 8 million hectoliters for 2006. Favorable weather and new acreage
coming into production has aided the increase in Chilean output for the last two years.
However, the industry still produces a significant volume of wine from table grapes, as
there is a shortage of white wine for the domestic market.

The Chilean wine industry has expressed some concerns about the explosive increase in
the planted area of wine grapes, which has increased 70 percent in the last eight years.
Industry sources indicate that once new areas come into production, wineries will have to
invest in new processing and storage facilities to absorb additional output. Per capita
consumption of wine in Chile was 16 liters in 2003 and has been more or less stagnant
for the past several years, down from the high point in 1982 of 52 liters.

Figure 16. Chile Wine Exports by Quantity

Million Liters

United Kingdom

United StatesGermany Denmark Canada

Fra

nce

NetherlandsJap

Ireland

Brazil

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

Over 60 percent of Chile’s total yearly wine production is exported. In terms of value,
Chile’s wine exports increased 5 percent. Major destinations for Chilean wine are the
United Kingdom, the United States, Germany, Denmark, and Canada. The United States
represents 13 percent in quantity and 17 percent in value of Chile’s export market.
According to the U.S. Department of Commerce, the United States imported 9 percent

more wine from Chile for $162.7 million in value and 5 percent more in quantity for
559.7 thousand hectoliters in 2005.

The United States sells a very small amount of wine to Chile. U.S. exports of wine to
Chile in 2005 fell 18 percent in value to $295 thousand but rose 64 percent in quantity to
2.2 thousand hectoliters. By value, most of the U.S. product sold in Chile is bulk wine,
vermouth, bottled wine, sparkling wine, and other fermented beverages.

The Chilean government provides no direct subsidies to support wine production or to
subsidize exports. However, Chile does have a successful market promotion campaign
called “Tastes of Chile” that includes wine. Promotions are managed by an organization
called “Wines of Chile” that is co-funded by both of the wine producers associations in
Chile, Vinos de Chile and Chilevid. The Free Trade Agreement with the United States is
expected to have only limited effect on wine export volumes to the United States as the
duty of 6.3 cents per liter is scheduled to be phased-out over 12 years. For more
information, see GAIN reports #CI5011 and #CI6014.

South Africa

Production: 9.05 million hl (2005)
Total imports: $13.8 million, 109 thousand hl (2005)
Total exports: $599.5 million, 3.5 million hl (2004)

Sources: GAIN report, Global Trade Atlas

Total wine production in South Africa was 9.05 million hectoliters in 2005, with a
projected production level of 9.63 million hectoliters for 2006. A severe drought in the
Western Cape during 2005 was accompanied by unseasonable scattered heavy rains. The
outlook for 2006 is expected to be more favorable due to better rainfall and temperatures
in the growing areas.

Figure 17. South Africa Wine Exports by Quantity

100

120

140

Million Liters

ited

ing

dom

NetherlandsGermany Sw

ede

nad

Denmark Belgium United StatesIrela

Fra

nce

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, South African wine export quantities increased 33
percent in CY 2005. In terms of value, South African wine exports increased 11 percent.
Major destinations for South African wine are the United Kingdom, the Netherlands,
Germany, Sweden, and Canada. According to Global Trade Atlas, the United States
represents 2.7 percent in quantity and 6 percent in value of South Africa’s export market.
The United States imported 32 percent more wine from South Africa in value to $43.7
million and 31 percent more in quantity to 91.1 thousand hectoliters in 2005.

The United States sells a very small amount of wine to South Africa. U.S. exports of
wine to South Africa rose in 2004, with increases of 180 percent in value to $406
thousand and of nearly 28 percent in quantity to 1.2 thousand hectoliters. By value, most
of the U.S. product sold in South Africa is bottled wine, vermouth, and wine must.

South Africa benefits from a duty-free treatment for its wine exports to the United States
under the African Growth and Opportunity Act (AGOA). The South African government
is encouraging all private industries to include a Black Economic Empowerment (BEE)
strategic plan within their sectors. The South African wine industry has adopted such a
plan, the South African Wine Industry Strategy Plan (WIP). The plan was accepted by
the Minister of Agriculture as the strategic framework for cooperation and action in the
South African wine industry in October 2003. For more information, see GAIN reports
#SF4024, #SF5023 and #SF6022.

Argentina

Production: 15.2 million hl (2005)
Total imports: $2.3 million, 4.7 thousand hl (2005)
Total exports: $306.8 million, 2.2 million hl (2005)

Sources: GAIN report, Global Trade Atlas

Total wine production was 15.2 million hectoliters in 2004/2005, with a projected
production level of 15 million hectoliters for 2005/2006. Despite higher vineyard yields
in 2004/2005, wine production decreased from the previous year due to more grapes
being sent to crushing for must. The 2005/2006 crop is expected to be one of the best
crops ever, due to exceptional weather enjoyed by most of the production regions

Per

capita consumption in Argentina was 29.87 liters in 2004 down from 36.3 in 2001.

Figure 18. Argentina Wine Exports by Quantity

Million Liters

United States Par

agu

United KingdomRussia

nad

Brazil

Jap

Neth

erla

nds

2003

2004

2005

Sources: Global Trade Atlas, U.S. Department of Commerce (for U.S. statistics)

According to Global Trade Atlas, Argentina’s wine export quantities increased 33 percent
in CY 2005. In terms of value, Argentina’s wine exports increased 33 percent. Major
destinations for Argentine wine are the United States, Paraguay, United Kingdom,
Russia, and Canada. According to Global Trade Atlas, the United States represents 14
percent in quantity and 20 percent in value of Argentina’s export market. The United
States imported 41 percent more wine from Argentina in value to $66.8 million and 26
percent more in quantity for 279 thousand hectoliters in 2004.

The United States sells a very small amount of wine to Argentina. Imports are
discouraged by the devalued currency. U.S. exports of wine to Argentina rose in 2005,
with increases of 100 percent in value to $551 thousand and of over 1,600 percent in
quantity to 1.6 thousand hectoliters. Most of the U.S. product sold in Argentina is bottled
wine and sparkling wine.

The Argentine Government passed Law No. 25849, which created the Strategic Plan for
Argentine Wine 2020 (Plan Estratégico Vitivinícola 2002 – PEVI). The goal of this
program is to reach sales of $2 billion and an international market share of 10 percent by
CY 2020. Article 3 of this law establishes the creation of an agency that will be in charge
of promoting consumption of Argentine wine locally and internationally. This new
agency is called the Argentine Wine Corporation (Corporación Vitivinícola Argentina –
COVIAR). This year, COVIAR began operations. For more information, see GAIN
reports #AR5019 and #AR6021.

Appendix

Additional Information

Harmonized System (HS) codes are used for tracking imports and exports. The industry
consensus is that wine products include three categories when described by the 4-digit
and seven categories when described by the 6-digit HS Code.

HS 4 HS 4 description

HS 6

HS 6 description

220410 Grape wines, sparkling

220421

Grape wines, nes

, fortified wine or must,

pack<2L

220429 Grape wines, alcoholic grape must nes

2204 Grape wines

220430 Grape must, unfermented, except as fruit juice

220510

Vermouth and other flavored grape wines -
pack<2L

2205

Vermouth/grape
wines

220590

Vermouth and other flavored grape wines –
pack>2L

2206 Fermented beverages

220600

Fermented beverages nes (e.g. cider, perry,
mead)

http://www.census.gov/foreign-trade/schedules/b/

For a complete selection of FAS worldwide reporting, visit

http://www.fas.usda.gov

Regular wine reports are published on Argentina, Australia, Chile, South Africa, France,
Germany, Italy, Japan, Mexico, Spain, Sweden, and the United Kingdom. Periodic
worldwide voluntary reports are also available, in the last two years from Costa Rica,
Brazil, Colombia, South China and Shanghai, Russian Federation, Thailand, Korea, the
Czech Republic, Turkey, Hungary, Croatia, Bosnia & Herzegovina and Poland.

For information on U.S. imports and exports, please visit our trade database online at

http://www.fas.gov/ustrade

. For country and regional tariff and tax information, please

refer to

http://www.ita.doc.gov/td/tic/tariff/country_tariff.htm

. For information on

production and trade, contact Dorsey Luchok at 202-720-3083. For information on
marketing, contact Don Washington at 202-720-1533.

Check out the wine webpage at

http://www.fas.usda.gov/agx/processed/Wine/wine.html

Country Export and Import Valuation Explanation

Countries use different export and import valuations, depending on the source of data.
These differences partially explain why the valuation of trade depends on the analysis
perspective.

“nes” stands for “not elsewhere specified.”

Country

Export Valuation Import Valuation Source of Data

Argentina

F.O.B.

C.I.F.

INDEC – National Institute of Stat istics & Census

Australia

F.O.B.

C.V.

Australian Bureau of Statistics

Austria

F.O.B.

C.I.F.

EuroStat

Belgium

F.O.B.

C.I.F.

EuroStat

Brazil

F.O.B.

SECEX – Foreign Trade Secretariat

Canada

F.O.B.

Statistics Canada

Chile

F.O.B.

C.I.F.

Chile Customs - Servicio Nacional de Aduana

China

F.O.B.

C.I.F.

China Customs

Colombia

F.O.B.

C.I.F.

DANE – National Administrative Department of Statistics

Cyprus

F.O.B.

C.I.F.

EuroStat

Czech Republic

F.O.B.

C.I.F.

EuroStat

Denmark

F.O.B.

C.I.F.

EuroStat

Estonia

F.O.B.

C.I.F.

EuroStat

Finland

F.O.B.

C.I.F.

EuroStat

France

F.O.B.

C.I.F.

EuroStat

Germany

F.O.B.

C.I.F.

EuroStat

Greece

F.O.B.

C.I.F.

EuroStat

Hong Kong

F.O.B.

C.I.F.

Hong Kong Census & Statistics Department

Hungary

F.O.B.

C.I.F.

EuroStat

Iceland

F.O.B.

Statistics Iceland

India

F.O.B.

C.I.F.

Ministry of Commerce

Indonesia

F.O.B.

C.I.F.

Statistics Indonesia

Ireland

F.O.B.

C.I.F.

EuroStat

Italy

F.O.B.

C.I.F.

EuroStat

Japan

F.O.B.

C.I.F.

Japan Customs

Latvia

F.O.B.

C.I.F.

EuroSt at

Lithuania

F.O.B.

C.I.F.

EuroStat

Luxembourg

F.O.B.

C.I.F.

EuroStat

Malaysia

F.O.B.

C.I.F.

Department of Statistics Malaysia

Malta

F.O.B.

C.I.F.

EuroStat

Mexico

F.O.B.

Secretary of Economy

Netherlands

F.O.B.

C.I.F.

EuroStat

New Zealand

F.O.B.

V.F.D.

Statistics New Zealand

Norway

F.O.B.

C.I.F.

Statistics Norway

Peru

F.O.B.

C.I.F.

Peru Customs - Super Intedencia Nacional de Aduanas

Philippines

F.O.B.

Philippines National Statistics Office

Poland

F.O.B.

C.I.F.

EuroStat

Portugal

F.O.B.

C.I.F.

EuroStat

Russia

F.O.B.

C.I.F.

Customs Committee of Russia

Singapore

F.O.B.

C.I.F.

Singapore Customs

Slovakia

F.O.B.

C.I.F.

EuroStat

Slovenia

F.O.B.

C.I.F.

EuroStat

South Africa

F.O.B.

South African Revenue Service

South Korea

F.O.B.

C.I.F.

Korea Customs Service

Spain

F.O.B.

C.I.F.

EuroStat

Sri Lanka

F.O.B.

C.I.F.

Sri Lanka Customs

Sweden

F.O.B.

C.I.F.

EuroStat

Switzerland

F.O.B.

C.I.F.

Swiss Customs

Taiwan

F.O.B.

C.I.F.

Taiwan Directorate General of Customs

Thailand

F.O.B.

C.I.F.

Thai Customs Department

Turkey

F.O.B.

C.I.F.

State Institute of Statistics

United Kingdom

F.O.B.

C.I.F.

EuroStat

USA

F.A.S.

C.V.

U.S. Department of Commerce, Bureau of Census

Venezuela

F.O.B.

SENIAT – National Customs & Tax Administration

Global Trade Atlas provides the following export and import value definitions:

•

Custom Import Value (C.V.) – This value is generally defined as the price
actually paid or payable for merchandise when sold for exportation, excluding
import duties, freight, insurance, and other charges incurred in bringing the
merchandise to the importing country.

•

Cost, Insurance, and Freight Import Value (C.I.F.) – This value represents the
landed value of the merchandise at the first port of arrival in the importing
country. It is computed by adding “Import Charges” to the “Customs Value” and
therefore excludes import duties.

•

Free Along Ship Export Value (F.A.S.) – The value of exports at the seaport,
airport, or border, port of export, based on the transaction price, including inland
freight, insurance, and other charges incurred in placing the merchandise
alongside the carrier at the port of exportation. The value, as defined, excludes
the cost of loading the merchandise aboard the exporting carrier and also excludes
freight, insurance, and any charges or transportation costs beyond the port of
exportation.

•

Free On Board (F.O.B.) – A standard reference to the price of merchandise on the
border or at a national port. In F.O.B. contracts, the seller is obliged to have the
goods packaged and ready for shipment at the place agreed upon, and purchaser
agrees to cover all ground transport costs and to assure all risks in the exporting
country, together with subsequent transport costs and expenses incurred in
loading the goods onto the chosen means of transport.

•

Value for Duty (V.F.D.) – Value of imports before the addition of insurance and
freight costs. The V.F.D. value equates approximately to F.O.B. value of goods
in the exporting country.

Trade Data Comparison

United States
Trading Partner

Wine Exports to
Partner, reported by
U.S. Customs, 2005
($Million)

Wine Imports from
United States,
reported by Partner,
2005 ($Million)

Difference between
trade reported by
United States,
Partner ($Million)

United Kingdom

$150.4

$223.3

-$72.9

Canada

$141.9

$136.1

+$5.8

Japan

$80.7

$62.6

+$18.7

Italy

$42.3

$51.7

-$9.3

Netherlands

$34.4

$69.5

-$35.1

Germany

$25.9

$33.1

-$7.1

Sweden

$19.8

$11.5

+$8.2

Denmark

$18.8

$14.3

+$4.5

Mexico

$16.7

$19.3

-$2.6

Sources: U.S. Department of Commerce and Global Trade Atlas, differences may not be exact due to
rounding

Data Updates

Each year the Department of Commerce, U.S. Census Bureau, Foreign Trade Division
releases a 13th month file approximately three months after the release of the December
data. The 13th Month file includes corrections (errata) made at the request of outside
sources and verified with exporters or importers by the Foreign Trade Division. The 13th
month data also includes late shipments. Late shipments are Shippers Export
Declarations or Import Entry Summary Forms that are received too late to be included
within the normal monthly trade release. Adjustments to U.S. wine trade data for 2005
were incorporated during July 2006 into the U.S. Trade system at

http://www.fas.gov/ustrade

and these data have been used in this report.

Sources

•

USDA FAS GAIN Reports (and other communications with the FAS Posts)

http://www.fas.usda.gov/scriptsw/attacherep/default.asp

•

USDA National Agricultural Statistics Service

http://www.usda.gov/nass/

•

Office of the United States Trade Representative

http://www.ustr.gov

•

California Agricultural Statistics Service

http://www.nass.usda.gov/ca/

•

U.S. Trade Database

http://www.fas.usda.gov/ustrade/

•

Global Trade Atlas

http://www.gtis.com/gta/

•

Euromonitor International

http://www.euromonitor.com

•

The Wine Institute

http://www.wineinstitute.org

•

The New York Wine and Grape Foundation

http://www.newyorkwines.org

•

The Northwest Wine Coalition

http://www.northwestwine.org

•

Oregon Wine Board

http://www.oregonwine.org

•

Canadian Vintners Association

http://www.canadianvintners.com

•

European Commission Report on the Wine Sector

http://ec.europa.eu/comm/agriculture/markets/wine/facts/situation.pdf