Read the Agrifrance Annual Report 2019
Special report on the rural land market in Britain
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#Vineyards
— 21.09.2020
Agrifrance releases its annual report with a focus on the organic wine market
Agrifrance, a specialised department of BNP Paribas Wealth Management, publishes its report on the French rural land market and this year it presents the organic wine market.
In 2020, the Covid-19 crisis has accelerated citizens' and consumers' awareness of the need to preserve the planet and to have a more positive impact on social and environmental challenges.
“The rural world, farmers and winemakers are not alien to this new phenomenon. Organic farming accounts for less than 5% of the world's cultivated surface area, but is growing at a spectacular pace! In France, the organic winegrowing area increased fourfold in ten years. Today, organic vines occupy one in ten hectares, and by 2023 French organic wine production is set to double. Winemakers must more generally solve the tricky equation of meeting consumer demands while reining in production costs. Technical advance, organic controls, innovation and communication must help the wine sector to progress, in a sustainable and positive way, towards greater transparency and awareness of consumer demands”.
Benoit Léchenault
Head of Agrifrance, BNP Paribas Wealth Management
The main trends of the report:
- Organic farming is soaring in Australia, New Zealand and Europe.
- Italy, France, Spain make up 75% of the world’s organic vineyards.
- In France, vineyards devoted to organic farming have increased fourfold since 2007, with a spectacular increase in 2018: +20% in one year!
- According to ISWR, this momentum should continue, and surface areas should expand by 14% per year, to reach 146,600 hectares of organic certified surface areas in 2022, or nearly 20% of French vineyards.
- In 2021, France will consume twice as much organic wine as in 2013 and could become the world's largest consumer of organic wines ahead of Germany, the UK and the US. On this basis, it would account for 20% of world consumption.
Breakdown of organic wines in France, by region
The second part of the study is devoted to the French rural land market:
- France secures its European leadership position in production, but yields and results are mixed. In 2019 climate conditions such as the summer drought disrupted winegrowing and farming as a whole, except straw cereals, which actually benefited.
- The forestry market was also shaken and oak prices declined for the first time since 2014.
Nevertheless, despite the economic environment of low interest rates, French rural land continues to perform well and appreciate in value.
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