Analyst group Rabobank has said that the total cost to Chile’s wineries of a powerful earthquake that struck the country earlier this year is likely to rise.
Rabobank said that wine sector costs from the quake, which claimed nearly 1,000 lives, will likely rise beyond the US$430m in damage estimated by trade body Wines of Chile.
The analyst group said today (6 April) that Chile’s wine industry could “undergo some deterioration of competitiveness resulting from increased costs”.
It added: “Additionally, capital expenditures will be required to get the industry completely back on its feet and the willingness of winery owners to put in additional resources will soon be tested.”
Around $250m-worth of wine – equivalent to 18% of last year’s total exports – was destroyed by the quake. However, structural damage was not as bad as initially feared, according to Wines of Chile.
Rabobank said that the industry is optimistic about the 2010 harvest.
“While the production capacity of many wineries was severely impaired, there are enough wineries with idles capacity to fill the gap,” it said.
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