What Drives Imports and Exports of Bulk Wine?
Feb 25, 2017 · 2 min read
Georgi’s Conclusion
Exchange rates are part of the explanation. There are other things that influence the wine trade: yields, demand changes, policy (duty drawbacks).
Theory and Reality: Bulk wine 2011–2014
A strong dollar
- Increases volume of imports and
- Lowers the U.S. dollar price of imports
- Reduces volume of U.S. Exports and
- Raises prices of U.S Exports for foreign buyers in their currencies
Between 2011 and 2014 the dollar gained about 15.5% against currencies of most wine producing countries (weighted by value of imports).
The dollar gained about 7.5% against the currencies of major wine importing countries (Euro, Pound, Yen, Yuan, HK Dollar) • What happened to U.S. Imports and Exports of bulk wine?
U.S. Total Bulk Imports by Month
Chile, Argentina, and Australia are the major bulk suppliers to the U.S. (87%)
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