Against the initial predictions of the National Institute of Viticulture (INV), who informed that Argentina would have one of the five lowest harvests of the last thirty years, when it has not yet finished the current harvest has already produced 25.7 million quintals, which represents a prediction error of 22.7% that is sure to be even greater. The reasons seem to be the weather experienced during the last part of the harvest.
Why is it so important this error? Firstly because the percentage of grape for bulk wines was fixed based on the initial forecast, searching for the market balance between offer and demand. However, this percentage has obviously proved to be wrong, with the direct effect on the stock of the largest producers and distributors.
On the other hand, the increase of the stock logically also has had direct impact on the price of Argentinian bulk wine. In fact, since it was started to get to know the volume of the harvest 2014, the upward trend in prices has stagnated.
A serious error of the INV that can take its toll on all the national wine industry.