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The World’s Wine Markets

Globalization at Work

Edited by Kym Anderson

This absorbing book examines the period of massive structural adjustment taking place in the wine industry. For many centuries wine was very much a European product. While that is still the case today – three-quarters of world wine production, consumption and trade involve Europe and most of the rest involves just a handful of New World countries settled by Europeans – the importance of exports from non-European countries has risen dramatically over the past decade.
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Chapter 9: Eastern Europe and the Former Soviet Union

Nivelin Noev and Johan F.M. Swinnen


Nivelin Noev and Johan F.M. Swinnen In the transition economies of Central and Eastern Europe and the Former Soviet Union, economic and institutional reforms have had important impacts on wine production, consumption, prices and policies. This chapter analyses the changes in grape and wine production, consumption and trade, as well as changes in policies and the industry’s structure, and discusses how various factors are affecting the market and trade situation and outlook. The transition countries account for a significant share of world wine markets. The ten Central and Eastern European Countries (CEEC-10) that have signed association agreements with the European Union (EU), several of whom are expected to join the EU this decade, currently produce somewhat more than 13 million hectolitres of wine or 4.6 per cent of total world wine production (Table 9.1). CEEC wine production is currently about 25 per cent less than the average level for 1984–88 (Figure 9.1). However, most of this decline occurred before 1990, since production in 1999 was slightly higher than in 1989. The two other wine-producing regions in Eastern Europe are the Balkan Non-Associated Countries (BNAC-5),1 four of which have emerged after the breakdown of the SR Yugoslavia, and some, mostly southern, republics of the Former Soviet Union (FSU). Four important FSU states (FSU-4), that is, Russia, Ukraine, Moldova and Uzbekistan, produced almost 6 million hl of wine in 1999, or 2.1 per cent of world wine production (Table 9.1). However, this is much less than their pre-transition levels: in...

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