Some Italian producers face ruin

Vineyards in some of Italy's most famous regions could face ruin due to a collapse in the price of grapes, the Italian Farmers Confederation has warned.

The organisation has posted a notice on the Confederation of Italian Agriculture website calling for government ministers to take action to avoid a "dramatic collapse" within the industry because of recession.

The news comes despite prospects of a good harvest in terms of quantity and quality. The IFC is concerned that prices have fallen by 20-25% with peaks at 45% compared to 2008. Producers are now getting paid less that 10 cents per kilo of grapes.

The report warned that producers are facing strains on their businesses due to the pricing crisis.

"We have warned the Confederation of Italian Agriculture CIA of a very difficult phase in the whole country, which sounds a loud alarm that the producers are in dire straits."

Areas under threat include Piedmont, Tuscany, Veneto, Trentino, Apulia and Sicily, according to the confederation.

David Gleave, managing director Liberty Wines, said: "It's a worrying situation and what it will mean in the medium term is a loss of vineyards.

"Whilst I do sympathise with the producers the same thing is happening in Australia and will happen in New Zealand soon.

"But any government intervention or introduction of state subsidy will just prolong the situation.

"If there is a positive side we have seen some price inflation, therefore it should be fairly stable this year and it will help balance problems created by the weakening of sterling and the strength of the euro."

Raffaella Guidi Federzoni, export manager from Fattoria dei Barbi, said: "While it doesn't affect wines made under the DOCG and DOC appellations the low end growers are suffering and prices could drop even further.

"Italy needs to be more co-ordinated long term and need support from the different associations and government agencies.

"In the short-term producers seem to be keeping their feet on the ground due to the consolidation of relationships abroad."

• Sommeliers