I feel obliged to re-write here some sentences I wrote last year:
“Apart from the pandemic threat, lack of long-term outlook of governments and central banks worsened the situation (last May they “blessed 2% minimum inflation rate” and set fire to speculation that was to go out of control). As of today, the same “far-sighted” economists admit that inflation is not going to be only temporary. Their efforts to protect profits of speculations put at risk the production chain, made of people who earn their living with goods and services.”
Unfortunately, what I forecast prior to more recent events became true. And it was far worsened by a war that is consequence of negligence and diplomatic unwillingness to find a solution to a problem existing since 2014. Result: inflation is out of control, price of commodities rose by 40- 50% and energy costs TRIPLED.
I give an example: two years ago, glass bottles cost 0.257 Euros, today they cost 0.406 €. In addition to this, weather conditions were similar to 2021, with long lasting heat and severe drought that reduced grape production by 30%. This figure has become a yield benchmark in the last few years, far below the limit for economically sustainable production.
At the end of August and mid-September, some raindrops safeguarded grape ripening and harvest. Unexpectedly, berry analyses were balanced, with low PH levels and good acidity.
Vines are strong plants, they are able to face very stressful conditions.
Vines have been cultivated by men for thousands of years, I am convinced that we will overcome this difficult time…but maybe locusts should govern!
I had high hopes for a normal harvest….it didn’t happen.
I had high hopes for inflation reduction…it didn’t happen.
Unfortunately, we are compelled to make a little increase in prices, to absorb the higher cost of dry goods, at least.
We hope to get back normal for harvest 2023.