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African countries involved in the Uruguayan Wine

African countries involved in the Uruguayan Wine

Uruguay took another step in its revitalized wine export management to begin negotiations with an international operator who conveyed his interest to place the product in various African countries.
Aramir Silva, president of the Center Winegrowers Uruguay (CVU), told “El Observador” that “Last week we visited an African buyer, very important, very interested in the Uruguayan wine and we understand the business is almost completed”.

The producer and director of the union said it will send a sample container with a load that considers 100% of wine in bulk packaging-not-with the consequent benefits in terms of prices, for example.

The idea, said Silva, is that from June “is placed about 20 containers per month to over a total volume of 5,000,000 liters of bottled wine, which is what this new market demand.”

This is wine made from grapes harvested in all vintage 2012, harvest reporting a high volume production, close to 140 million kilos of grapes, usually above average.

That harvest will make wine more than 100 million liters, well above domestic demand, which is essential to export a significant volume in order to obtain a foothold in the domestic stock and avoid losses that occurred in other exercises.

The sale of wine to Africa and complements a pending business management considers high-volume sales to other markets, mainly Russian.

That export operations, Silva remarked, “is done in the context of a business plan that is very interesting for the sector, which involves the participation of the Center for Wine Growers, industry and government actors, mainly the Ministry of Livestock and the National Wine Institute (Inavi), with a strong push that you give to this the President (Jose Lez). ”

Record Exports

Indeed, Lez in dialogue with “El Observador” confirmed the interest of the African market for Uruguayan wines packaged. He said even one of the destinations involved is Angola.

He explained further that the business case designed for bulk wine to Russia are considered some 20 million liters made from grapes of the recent crop, having settled there in the summer 6,000,000 (Wine, 2011). New shipments to Russia are going to start tomorrow.

In addition, he stressed that China “is the strongest market at the level of price differentiation, is the one who pays better.” At the destination, it is estimated drop from the second semester 5,000,000 liters in bulk, but also managed to place wine packaging.

These placements provide for the existence of a record that would stand in the export of 20 to 25% of wine produced this year.

In terms of prices, ranging from $ 0.43 to $ 0.65 per liter, considered normal in the international arena and in the framework of this Business Plan are considered positive.

There is also expectation that demand can come from Central America. In all these markets we explore the placement of grape juice. Lez added that in relation to another product from France, Russia and China reached consultations wine alcohol, but it is evaluating the issue of costs and prices to establish the viability of the business.

Source:El Observador