Languedoc: the stocks are a source of concern…

Doc: the last report established by the company Ciatti summarises well the situation of the bulk market from Languedoc: “even if the sales have picked up again in May and June, it will not compensate the strong decrease observed between February and April”.

In April 2012, the bulk wine sales were indeed 5% lower than the sales from last year. According to the international trading office, the availability of the red and white varietal wines does not decrease again (Cabernet Sauvignon, Chardonnay, Merlot, white Sauvignon and Syrah). At the beginning of the summer, the sought after wines remain the rosés with designated geographical indication and with mention of the variety (Cinsault, Grenache and Syrah), indicating that the 2011 stocks will not be cleared before the 2012 grape harvest.

As there is a need to empty the cellars in anticipation of the next crops, many cooperative wineries would downgrade their white wines (notably the white Sauvignon). This strategy helps with clearing the stocks but it drives down the prices in the short term. The Syndicat Coordination Rurale denounces « the scandalously low level of the bulk white wine on the market in Languedoc-Roussillon. Today, the Protected Designation of Origin wines are bought 45€/hl from the producers, though these wines used to be sold for 90€/hl during the last campaign and that the minimum price to cover the production costs is 115€/hl. According to this agricultural union, the winemakers are the victims of a back margin system, with costs deducted afterwards from the purchase price (for instance filtration and transport costs).