Wednesday 25 July 2012

News from Jerez 25.7.12

At the first full meeting of the Consejo Regulador with Beltran Domecq as president, the harvest took up a lot of discussion. At the end of the meeting he underlined the consensus in matters on the agenda, in particular confirming harvest forecasts of a drop of 15-20% which in terms of grapes qualifying for DO Sherry represent a drop of 7-15% to about 52-62,000 butts. This was also confirmed by Cesar Saldana, director general of the Consejo.

Owing to the predicted deficit versus annual sales for which 85,000 butts are needed (23,000 more than the harvest will provide), messrs. Domecq and Saldana pointed out that the bodegas already have stocks of about 360,000 butts, enough to last for four and a half years. Given the balance achieved between planted vineyard and the bodegas' requirements, the Consejo is content with a modest rise in grape prices, although  it is really up to the growers and bodegas to decide between themselves.

As Beltran Domecq said, "The grapes are very important for Sherry, and a decent price should be paid in order to produce the level of quality needed for Sherry. The price has increased over last year's which was too low, and contracts for three years have been made with prices rising in each campaign." They will rise from about 27 centimos to 33 centimos, the price which the growers say is their break-even price, but the Consejo is hoping they will do their bit for stability.

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