Moldova is expecting a significant drop in grape production this year, with yields forecasted to be up to 35% lower compared to 2023, according to data published by the Ministry of Agriculture. 

Experts attribute the decline to severe water stress affecting 75% of vineyards, compounded by record-high temperatures from March to July, a ministry statement said. 

The intense heat accelerated the grape ripening process, pushing the start of harvests for wine grapes forward by nearly a month, from early September in 2023 to August 12 this year.

The estimated supply of grapes for processing in 2024 is set to decrease to 220,000 tonnes, compared to the 263,000 tonnes processed last year, according to data presented at the Grapes, Wine, Wine-Based Products and Processed Products (CP FVV) meeting earlier in August. Grape harvests are expected to range between 3 and 12 tonnes per hectare.

"To ensure sustainable development in the wine sector, grape producers are encouraged to collaborate closely with wineries by establishing long-term partnerships," the Ministry of Agriculture said in a statement. Producers are also advised to register production in Moldova's Wine Registry to guarantee their products meet market requirements.

Wine producers face rising costs, with vineyard maintenance estimated at MDL45,000 to MDL60,000 (€2,283-3,044) per hectare, according to data shared at the meeting. In response, the group recommended purchase prices for grapes intended for wine be set between MDL5.00-7.00 per kilogram. Higher prices of 15-30% were proposed for premium grapes intended for wines with geographical indications or designation of origin.

Global wine industry faces climate pressures

Moldova’s grape harvest challenges reflect a broader global trend of declining wine production. In 2023, global wine production fell to its lowest level since 1962, according to the International Organisation of Vine and Wine (OIV). Extreme weather conditions, including droughts, fires and heavy rains, have severely affected vineyards worldwide.

The OIV highlighted that European Union wine production fell by 10% in 2023, marking the second-lowest output this century. France, typically the world’s largest wine producer, is expected to see its production plummet further this year due to adverse weather, diseases and frost. With production expected to dip to between 40mn and 43mn hectolitres, France is at risk of losing its title as the world’s top wine producer to Italy.

Climate change continues to be a significant factor in the shrinking harvests, creating uncertainty in the global wine industry as producers struggle to adapt to increasingly volatile environmental conditions.

Purcari Wineries weathering challenges

Despite the tough conditions, Moldova’s largest wine producer, Purcari Wineries, reported strong results for the first half of 2024. The Bucharest-listed company reported a 3% revenue increase to RON165.9mn (€33mn) in H1, driven by a 12% growth in its core wine segment. 

"We delivered a robust [Q2], with our core wine segment rising 12% in sales in the first half of the year," said CEO Victor Bostan. "We are pleased to report improved profitability, with our gross profit margin reaching 51% in the second quarter."

The company saw its Ebitda rise by 38% and net income jump 44% in the second quarter, boosting confidence in its ability to withstand the challenging market environment.