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Spotlight: Viticulture in the UK

In the last 20 years UK wine has been recognised as a serious business and now offers a flexible way for landowners to diversify


A growing industry

Even the most optimistic person would describe the present economic, political and climatic period as volatile. Farming is far from insulated from these events. Short term, the Common Agricultural Policy (CAP) will come to an end and be replaced by an uncertain system of public money for public goods. Longer term, climate change will likely increase the frequency of freak weather events such as floods and droughts. Creating multiple income streams and tapping into niche areas such as viticulture allows businesses to mitigate risk from this uncertainty.

Our nation’s talent for wine-making was only recognised around 20 years ago, but has grown rapidly to meet an increasing demand for domestic vintages

Savills Rural Research

Growing grapes in Europe is no longer restricted to the Mediterranean. It is one of the fastest growing areas of the UK economy and an opportunity for landowners to diversify. Viticulture can begin as a small project, needing only around three hectares potentially to turn a profit. This small commitment could appeal to those with smaller holdings or those who want a new enterprise without adversely affecting existing rotations. Our nation’s talent for wine-making was only recognised around 20 years ago, but has grown rapidly to meet an increasing demand for domestic vintages (see below).

Figure 1

Production and area under vine One of the fastest growing areas of the UK economy
Source: UK Vineyard Register: Food Standards Agency

Yields of grapes can vary a great deal from year to year because of the weather. Poor years occurred in 2008 and 2012 through bad weather and low light levels. However, the extreme heat of 2018 has been described as “the worst summer for decades” by arable farmers, while English winemakers described the same summer as “near perfect”. A high quantity of high-quality grapes gave 15.6 million bottles of wine.

Demand for UK wine is currently ahead of supply. Almost all of the area under vine is dedicated to high-quality grape varieties and that area is growing fast. It has tripled since 2000. The national story began when Sussex vintner Nyetimber won gold at the International Wine and Spirits Challenge in 1997. Since then, UK wine has been recognised as a serious business, producing high-quality goods.

Figure 2

Who is spending what on wine?
Source: Accolade Wines | Note: * % of respondents

Viticulture is a flexible way to diversify and almost any landowner can get involved. Simply growing grapes and selling them to another wine-making business may be enough for some, but far more can be done. Even if wine is produced off-site on a contract basis, the finished article would be an attractive product on local shelves or in local restaurants. Vineyards themselves are often found on sunny hills in picturesque parts of the country, ideal for hosting tourists for a day trip or a weekend getaway.

Figure 3

Vineyards in the UK High demand for domestic vintages
Source: UK Vineyard Register: Food Standards Agency

Demand for UK wine is currently ahead of supply. Almost all of the area under vine is dedicated to high-quality grape varieties and that area is growing fast

Savills Rural Research

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