German winegrowers say industry faces 'historic economic crisis'

German wine growers are facing their worst crisis in decades, as sales costs continue to lag behind what it takes to produce the beverage, industry figures showed.

"While the 2025 harvest is considered to be of exceptionally good quality, the industry is in the midst of a historic economic crisis," according to a market report to be published by the German Farmers' Association at year's end that was made available to dpa.

The growers called the economic situation "dramatic" as barrel wine prices are around €0.40 ($0.46) to €0.60 per litre - well below the production costs of around €1.20.

The industry is facing its worst crisis in decades, association president Joachim Rukwied explained in the report, with domestic producers' market share falling to 41%.

"Due to the poor market situation, we expect to lose a considerable amount of vineyard area."

In addition, exports have been burdened by tariffs imposed by the United States, the most important sales market for German wine.

At 7.3 million hectolitres, the 2025 wine harvest was 16% below the 10-year average - its lowest since 2010.

The large wine-growing regions of Rheinhessen, Pfalz, Baden and Württemberg were particularly affected, with some experiencing a 20% drop in volume compared to the previous year.

"In contrast, regions such as the Mosel, Saxony and Saale-Unstrut recorded significant increases after the frost year of 2024," the report stated.

All 13 German wine-growing regions reported "exceptionally high grape quality," the report stated.

"The wines of the 2025 vintage are considered aromatic, concentrated and elegant. Small berries and intensive selection led to high quality but reduced quantities." Almost two-thirds or 64% of wine wine is sold in supermarkets.

Structural problems are also causing difficulties for wine-growing businesses, the report stated.

"Seasonal workers are becoming increasingly difficult to find, and labour costs exceed the achievable revenues in many businesses," it said.

The rising minimum wage is an "additional massive burden." Winegrowers with vineyards on steep slopes are particularly affected by this, as cultivation in these areas is difficult to mechanize.

In light of these challenges, the president of the farmers' association is urging consumers to support domestic wine.

"I appeal to consumers: Drink more German wine," he told the Rheinische Post newspaper. "We offer qualities that can easily compete with wines from France, Spain or Italy."