European Commission points to historic drop in wine production

BRUSSELS – The European Commission forecasts that agricultural markets in the European Union (EU) will grow by 1.1% this year and 1.5% in 2026, anticipating a historic drop in wine, including 8% in Portugal, and a recovery in olive oil.
According to the summer 2025 edition of the report on short-term prospects for EU agricultural markets, released today by the community executive, wine production is expected to be 10% below the five-year average, with an annual decline of 5%, reaching a historic low of 20 years (137 million hectoliters) in the 2024/2025 period.
This is attributed, according to Brussels, to a 25% drop in wine production in France, 11% in Germany, and 8% in Portugal, which the increases of 15% in Italy and 10% in Spain do not compensate for.
Meanwhile, olive oil production is recovering sharply, with a 37% increase by June leading to a drop in prices.
Poultry production is also expected to grow, supported by increasing demand, and milk deliveries remain stable, the Commission anticipates.
On the other hand, production prospects show a declining trend for sugar and ruminant meat, in addition to wine.
Meanwhile, food inflation in the EU continues to be higher than the general rate (3.1% compared to 2.2% in May), although some stability – or even deflation – is observed in some categories of food products.
Despite historically high levels, EU farmers have recently reported a stabilization of production factor costs.
The report anticipates that oil prices will decrease, although tensions in the Middle East may affect this situation.
Geopolitical instabilities, climate-related challenges, and the evolution of trade policies of major global players, such as the United States and China, pose threats to the stability of global and EU markets, Brussels warns. (28/07/25)