Worldwide Wine Glut
Puts California Wineries at Risk
- Worldwide Wine Glut Puts California Wineries at
- Or Learning our Lessons about Gold Rushes
- By Patricia Dines
- Sonoma Valley Voice, December 2003
- (c) Patricia Dines, 2003. All rights reserved.
- A news item from the Quarterly Wine Review (QRW) recently
caught my eye. "The California wine industry is in its worst slump
in ten years," it said, "because of a worldwide wine glut and flat
consumption, after a decade of unprecedented expansion, which saw
the number of wineries in California grow from 600 to 900.
Unfortunately," it continued, "over-production ... aggressive
foreign competition ... and a languid economy have all conspired
to take the bloom off the rose. If the trend continues, say
experts, scores of California wineries - perhaps as many as 200 -
could go out of business or be sold off to larger
- It's not a pretty prospect. What I find most striking is the
passive language that describes this turn of events, as if we were
powerless to resist external forces conspiring to ruin our pretty
rose. Yet, right there in the text, is a clear cause and
- It's basic economics that rapidly expanding supply (e.g.
wineries) will likely cause overproduction and winery closures -
unless demand increases, which there was no indication would
happen and hasn't. But this fact was ignored in the go-go days of
winery expansion, as many wineries and farmers planted and
expanded vineyards, hoping to cash in. And yes, like an alcohol
high, it can be exciting to join the gold rush, to reach for
dreams. But, if we don't want a hangover to follow, we need to
also stay connected to reality, and hear the possible negatives
and impacts on others. Because here in the real world the dark
side of these manias can have real consequences.
- This is not just a theoretical issue for me, because I live in
Sonoma County, in the heart of "Wine Country." And it broke my
heart in the late 1990s to see acres of wild forest ripped from
the earth, replaced by tall fences and stark rows of white
grapevine crosses, scattering the deer and squirrels from their
homes. It was even harder knowing that this was a boom and there
would be a bust, and all this cost would be for naught. And I do
understand that farmers and vineyard owners want to make a living,
align with trends, and continue local agriculture. My concern is
when the line is crossed - when basic logic (and the earth) is
thrown to the wind, and the risks are not treated with respect. At
the time, environmentalists like myself gathered together and
raised their voices in concern. Some spoke eloquently to groups
and in articles about the downsides of the boom times. They looked
at current laws to see what might help protect the forests, water
tables, and land - and found little help. For instance, they found
that regulations controlling how a forest could be cut down for
lumber didn't apply to the very same forest being cut down for a
vineyard. And some small positive steps were implemented, like the
Vineyard Erosion Control Ordinance. But environmentalists concerns
were largely steamrolled by the crowd only wanting to hear happy
talk, not about the likely risks or harm to others.
- So now that the predicted crash has arrived, I think its
important to see the real story here, for three reasons:
- (1) To name the real consequences of this vineyard expansion,
the real cause-and-effect. The distant view sees this as just a
market correction, but here on the ground, the forests are still
and forever lost, the water tables are still depleted, and the
well-being of long-standing wineries are threatened. The money
moves on, but leaves detritus in its wake....
- (2) To encourage us to learn our lessons for the next mania,
the next gold rush mining fools gold. So that, when the euphoria
starts, we'll look not just at the dreams but also at the risks
hiding in the shadows, not only to ourselves, but to others who
might be impacted by our choices.
- (3) To encourage environmentalists to use this story as an
example of how bubbles do burst, highlighting what it looked like
before and after. And, in telling this story, let's talk not only
about the loss of forest habitat, but also about the basic
economics of supply and demand and how a crash can hurt everyone
in a market, even those not swept up in the mania.
- And, on a broader level, perhaps telling the real story of
boom-and-busts like this one can help our culture start to see the
deeper, more systemic mania that were foolishly following - that
of making money by consuming nature without ensuring its long-term
sustainability. Because our true survival isn't from money - it's
from nature, which provides the air, water, and food we all
require (not to mention spiritual nurturance). Its delusional to
think we can destroy nature without impacting ourselves. Already
we're starting to see ecosystems collapsing worldwide, risking a
bust far surpassing one of mere economics.
- By telling the true stories, perhaps our culture can finally
use our intelligence to survive in alliance with, not defiance of,
the many blessings of the natural world.
- Patricia Dines is a Sonoma County writer and graphic
(c) Copyright Patricia Dines, 2003. All rights reserved.
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