Projecting the world wine market from 2003 to 2010
Rapid New World supply increases are imposing downward pressures on prices for grape and wine producers. A per capita decrease in wine consumption in the worldâ€™s largest wine producers is being offset by consumption increases elsewhere, and growing consumer preferences for higher quality wines. We use a global wine model to project the worldâ€™s wine markets from 2003 to 2010. Our decomposition of results allows us to examine the contribution of different market forces to changes in prices and outputs relative to 2003.
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