Grape prices – which have been historically set by the buyer rather than the seller in Argentina – have not kept pace with inflation, leading to situations where a liter of basic wine sells for 1.80 pesos, but costs 4.08 pesos to produce. Basic red wine sells for 2.64 pesos a liter and costs 4.50 pesos to produce. (One peso equals $0.12.) Overall, grape prices have risen 10-15 percent over the past four years while costs have increased by 80 percent.
By Wine-Searcher staff | Posted Friday, 16-Jan-2015
The city of Mendoza in Argentina ground to a halt today as more than 5000 grapegrowers, winemakers and vineyard workers protested against government inertia over a bailout for the troubled wine industry.According to media reports, the protesters chanted slogans and dumped wine on the steps of city hall as they demanded that local and national politicians move on promises of financial aid made earlier in the week, so the harvest – which is due to begin in a matter of weeks – could take place.