「经济学人」Feeling the heat

Climate change is hurting the wine regions of Chile and Argentina

Chilean summers are getting hotter. That is bad news for vineyards. Irrigation relies on snowmelt from the Andes, which is becoming less reliable, while excessive heat itself harms the grapes. Wine production in Chile has fallen in four of the last five years. The picture is similar elsewhere in Latin America. The drop in wine output from the region accounted for one-third of the total decline in global production in 2023.

Moving higher into the Andes cuts the risk of heat-related damage, but exposes vines to other perils, including hail, landslides and flash floods. It takes a brave investor, with deep pockets, to stump up the cash for such a move. Outside Latin America, new vineyards are often funded by venture capital. But such sources of finance are comparatively scarce in the region. Most producers will probably end up staying put, and suffering the heat.

This article appeared in the The Americas section of the print edition under the headline "Climate change and wine" (Apr 4th 2024)

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