German wines will increase in price this year, according to the president of the country's wine grower's federation in south-west Germany. Herman Hohl, leader of Weinbauverband Wurttemberg, estimates that prices will rise by between 5% and 10% in 2004. He blames the fact that the harvested volume lags behind the potential sales volume.

The possible rise in prices is a clear indication of an increase in the quality of German wine, according to Lebensmittel Zeitung. The newspaper says that the 2003 vintage is expected to be of a rarely-achieved high quality.

Hohl also told the paper that the wine growers' federations in the regions of Baden, Franken and Wurttemberg will market their wines together in future, under the name 'Southern Sunshine States.'