Is Germany’s ice wine production the latest victim of global warming?

For the first time in years (perhaps ever!), a warm winter in Germany has led to all German vineyards unable to produce the expensive and popular alcoholic drink known as ice wine.

Ice wine is a traditional German desert wine made from grapes which have been frozen whilst still on the vine. The process of freezing the water inside the grape, whilst leaving the sugars untouched, results in a very sweet and rich flavour.

As a result of the abnormally warm winter, not a single German vineyard has been able to produce the wine this year as the temperature did not drop low enough for the grapes to freeze.

Production volumes of ice wine has always been low, accounting for only 0.1% of total German wine production. It is this rarity of the product which justifies the relatively expensive prices.

Following the lack of harvest this year and uncertainty over future production as climates warm up around the world, it is expected that the price of ice wine will continue to rise as the product becomes even more scarce and difficult to produce.

THINK LIKE AN ECONOMIST!

Q1. What is meant by the term scarcity?

Q2. Explain why German ice wine production failed this year?

Q3. With the use of a diagram, analyse the impact that the warm winter has had on the supply of German ice wine.  

Click here for the source article

TheCuriousEconomist

Recent Posts

Can Defense and Housing Turn the Tide on Sluggish GDP Growth in the UK?

The U.K. economy is still stuck in low gear. The Office for Budget Responsibility (OBR)…

3 days ago

PepsiCo Plans $1.95 Billion Poppi Acquisition

PepsiCo is planning to acquire prebiotic soda brand Poppi for $1.95 billion, marking a major…

2 weeks ago

South Africa Unveils $54.5 Billion Infrastructure Plan to Boost Growth

South Africa has announced a three-year, 1 trillion rand ($54.5 billion) public infrastructure plan aimed…

3 weeks ago

Canada Pulls U.S. Alcohol from Shelves in Retaliation for Trump Tariffs

The U.S.-Canada trade war is spilling over—literally. In response to Trump’s 25% tariffs on Canadian…

3 weeks ago

U.S. Economy on Track for Contraction as Spending and Exports Decline

Early 2025 economic data suggests the U.S. economy may be slowing down faster than expected.…

4 weeks ago

India’s Consumer Market Shrinks as Wealth Inequality Deepens

India’s consumer market is far smaller than its population suggests, with only about 130-140 million…

1 month ago