Chile quake wrecks vineyards, wine stocks

Chile's famous grape-growing region, which has helped propel the country into ninth place among the world's top wine producers, is soberly counting the cost of the massive earthquake.

Growers believe some 12.5 percent of Chile's current production, just coming into the fall early harvest in this southern hemisphere nation, was destroyed by Saturday's 8.8-magnitude quake.

Some 70 percent of the country's vineyards are based in the area struck by the quake -- one of the largest ever recorded -- and then dealt a double whammy when it was swamped by a tsunami.

But growers are optimistic that despite the losses and the damage to grape vines and wineries they will still be able to meet domestic and export targets.

Chile's largest wine growers association, Vinos de Chile, which groups some 92 percent of the country's vineyards, said in a statement that the damage was uneven and still being assessed.

"We've managed to measure the loss at 125 million liters... worth some 250 million dollars," said the association's president Rene Merino.

"However, compared to the abundant harvest of 2009 the loss only represents 12.5 percent of the total," he added.

The 2009 harvest was a particularly ripe one for this South American country producing some one billion liters of wine.

Now five days after the quake that killed more than 800 people, the grape harvest is back in full swing at several vineyards, while others are determined to get back on their feet fast.

"The harvest has begun and its volume will not be affected by the earthquake or its aftermath," vowed Merino, adding that the "bottling factories are generally undamaged and up and running."

While nature played a cruel trick on these proud vintners, they are hoping the weather will stay in their favor to help reap back the harvest after the quake.

"Grapes are maturing a little later this year in some valleys, meaning that if we do things properly we'll have a normal harvest," said Corporation Chilena del Vino vice president Eduardo Silva.

Corporation general manager Antonio Larrain ruled out any shortfalls in Chilean wine exports, which this year should reach 600 million liters.

Merino denied reports of a 40-million-liter production loss by Chile's and Latin America's biggest wine exporter, Concha y Toro.

"The losses sustained by Concha y Toro are much lower than that, but obviously all losses are proportional to the size of each company."

Juan Sutil, from the Vina Sutil company, told the Financial News daily that he had "lost much of the finished products and 15 percent of those we had in stock or wine cellar."

But there was better news from the farm manager of Vina Emiliana, Jose Guilisasti, who said that "of the four wineries we have, only one had any problems."

According to the International Organization of Vine and Wine, Chile, with an average yearly production of 8.8 million hectoliters, is the world's ninth leading wine producer.

It ranks behind France, Spain, the United States, Germany, Portugal, Argentina, Australia and South Africa.

In 2007 Chile exported one billion dollars' worth of wine, with Europe buying up 52 percent of the output, followed by the United States and Canada.