In December 2022, temperatures dropped as low as in January 2024, but the cold episode lasted less long. (Archive photo)
Of the total $440 million to $445 million the report projects in industry losses, vineyards and wineries stand to lose $340 million to $346 million .
Reduced production will also impact other parts of the supply chain, with suppliers, logistics service providers and distributors likely to lose between $97 million and $99 million. p>
This is very worrying, says Mark Hicken, wine industry consultant and founder of Alca Intelligence. The industry will be affected for several years by very reduced or virtually non-existent harvests, he said.
Most small and medium sized wineries will find themselves in great financial peril, as it is simply not possible to survive for a long period without normal income.
A quote from Mark Hicken, wine consultant. #x27;wine industry
Mark Hicken estimates that in the absence of a bailout plan, the majority of Wine farms, especially small and medium-sized ones, will be in great difficulty.
Roly Russell, Parliamentary Secretary for Rural Development, said in a statement that the government is helping farmers address the climate-related challenges they face. It says last year, about $27 million in compensation was paid to growers who lost their crops due to the 2022 frost.
For its part, the BC United party is calling for the creation of an emergency working group with the BC wine industry and the federal government to develop solutions to face the next few years.
Even if the longer-term consequences on the health of the vines cannot be precisely estimated until later in the year, wine growers will have to invest to replant vines destroyed by the cold, estimates the Association of Wine Producers of British Columbia.
The effects can last for several years because it takes time to recover from the damage, says Ben-Min Chang, of Agriculture and Agri-Food Canada. We have to prune each vine or replant, which takes time and effort.
With information from Benoit Ferradini and Brady Strachan< /em>
Jennifer Magher (Consult the profile)Jennifer MagherFollow