Geography and demography :
Capital: Vienna
Population: 8 million
Unemployment: 4.3%
Four regions: Burgenland, Steiermark, Niederösterreich, Vienne.

Politics:
Government: Pluralist federal republic, parliamentary democracy
Head of State: Federal President Heinz Fischer

Economy:
GNP/person: 31 406 US$ (2005)
Currancy: Euro
Principal economies: Industry, mining, energy, agriculture

History

Vines were introduced to Austria by the Celts 2400 years ago.
Viticulture developed in particular in the Middle Ages, thanks to monastic establishments, which made wine. Wine growing in Austria at this point was actually more widespread than at present.
In the sixteenth century, beer and high taxes on wine led to a crisis in Austrian wine-growing.
In the eighteenth century, bulk selling from the place of production was allowed by the authorities.
In 1866, the Austrian wine industry was hit by a natural catastrophe – frost. This was quickly followed by phylloxera, which devastated all vineyards.
In 1985, the Austrian government put rigorous legislation in place.

The wine growing regions

16 zones in 4 wine growing regions.
Four fifths of Austria have a mountainous climate, which is why the main vineyards are in the East of the country. Vineyards are spread across four regions:

The wine-growing region of Niederösterreich (Lower Austria) represents 30 000 hectares, including the zones of Wachau with its vineyards along the banks of the Danube, , Kremstal, Kamptal, Traisental, Donauland, Weinviertel, Carnuntum and Thermenregion.

In the region of Burgenland, 16 000 hectares of vines are cultivated, shared between the following zones: Neusiedlersee, Neusiedlersee-Hügelland, Mittelburgenland and Südburgenland. This region is situated near to the Hungarian border where the summers are hot and the winters often very cold.

The wine-growing region of Stiermark (Styria) has about 3 600 hectares of vines, partly in the zone Südsteiermark, partly in the zones of Südoststeiermark and Weststeiermark. Situated near Slovenia, this region has a meridonal climate.

Around Vienna 600 hectares of vines are grown.

Austria: The 17th largest producer of wine in the world
Austria covers around 84 000 km², with approximately 50 000 hectares of vines in 40 000 vineyards, of which only 6 500 bottle their own wine. The others take their wines to cooperative or particular winecellars. The great majority of vineyards are very small and wine-making is generally a secondary activity.

Production levels vary
These variations are largely due to climatic conditions during the growth period of the vine. For the 2005 harvest, Austrian wine production reached 2.2 million hectolitres, a 4% drop on the long term average of 2.5 million hectolitres, and significantly lower than production the previous year (-17% or 470 546hl).

A harvest of around 2.3 million hectolitres is forecast for 2006, still less than the long term average. Low autumn precipitation and very high summer temperatures caused exceptionally high coulure for Grüner Veltliner grapes, the most common variety grown in Austria. However, high quality is predicted for this years crop.

Grape Varieties

Austrian wines are often varietal. About thirty grape varieties are accepted in Austria for the production of ‘Prädikatswein’, the equivalent to AOC or Vins de Pays wines (that is, approved by a regulating body).

· Red grape varieties represent 36% of total production area. The most planted grape is Blauer Zweigelt, which makes up 35.21% of all red grape varieties planted. The second most popular is Blaufränkish.
· The most frequently cultivated grape varieties are whites, constituting 64% of all vines planted. The principal variety is Grüner Veltliner, a local variety which makes up 48.3% of the total area of white grape varieties. It is followed in popularity by Welschriesling and Rheinriesling.

 White wines still dominate

The amount of different grape varieties planted has developed over the last ten years but until 1990 a slow but consistant evolution could be observed. Reds are planted more often and their quality is improving thanks to the evolving taste of consumers and the increasing popularity of red wines.

Le stockage

Une évolution inverse

National wine inventory rose slightly in 2004 and, at 2.86 million hl, was slightly above the average. A general shift in the composition of the total was observed, with an increase in Qualitätswein and a decrease in Tafel- and Landwein. The current inventory comprises 74.4% Qualitätswein, 10.7% Landwein, 7.1% Tafelwein and 3.3% predicated winesThe fact that the inventory of higher quality wines increased by 15% between 1999 and 2000 demonstrates the willingness of the Austrian wine industry to focus on high-quality products.

Per capita wine consumption in Austria is the thirteenth highest in the world. For the last fifteen years, Austrian wine consumption has known a notable decline from 2.7 million hectolitres in 1989 to its lowest point at 2.3 million hectolitres in 2004. In 2005 consumption increased slightly to 2.4 million hectolitres. Domestic consumption is therefore approximately equivalent to production, ie around 2.5 million hectolires per year. The decrease in the quantity of wine being consumed by Austrians is probably linked to an increased awareness of health and quality concerning food, and a shift in lifestyles towards health and well-being.

53% of wine is drunk at home, compared to 38% in restaurants and eslswhere. In value, sales in the food sector (restaurants, cafés, hotels, etc.) are worth 126 billion Shillings (about 9 billion euros). Specialist shops, on the other hand, represent only 9% of wine consumption in Austria.

74% of bottles sold are Austrian. For the last five years Austrian wine sales have been more or less equally divided between red and white. White wine sales are dominated by Austrian wines – just 8% of white wine is imported (4% of total wine sales). On the other hand, foreign red and rosé wine commands a large share of the market; 44% of red or rosé wine sold is foreign (22% of total wine sales). This division reflects the fact that 64% wine produced in Austria is white.

In 2005, 698 683 hectolitres of wine were imported.
Imports increased rapidly between 1995 and 1998, due to poor harvests in Austria, but from 1998 they decreased again when harvest conditions became more stable. Recently, imports have increased greatly, by 28% between 2003 and 2005.





The largest importer is Italy, bringing in mainly table wine with a fairly low value per litre. Germany is the next largest importer, followed by France, which is the third largest in volume but the largest in value.

French wines have a high value per litre
French wine sold in Austria is generally high quality red, because Austria produces mainly white wines, but the consumption of red wine is increasing continually. Other wine producing countries also export to Austria, and are often very competitively priced.

Exports on the increase
In 2003, total exports reached 804 083 hectolires, an increase of more than 500% in ten years. An explaination for this sudden and sharp increase can be found in the fact that exports of table wines decrease, in complete opposition to sales of premium wines which continue to increase. Since 2003 exports have fallen slightly to 738 061 hectolitres.

98% of Austrian wine exports go to other European countries ; more than three quarters of Austrian wine is sold in Germany (39.7 million hectolitres) and the Czech Republic (17.4 million hectolitres). However, in terms of value, the American market is also very important, at 5.6 million euros or 7% of the toal value of Austrian exports.

The ÖMV (Österreich Weinmarketing Service)
The ÖMV supports and coordinates quality and sales of wine. Its goal is to ensure that high quality wines dominate the Austrian market. Furthermore, it aims to significantly develop exports of bottled wine over the next ten years.

Contact details : Prinz Eugen Straße 34 A-1040 WIEN Tel: 01 503 92 67 Fax: 01 503 92 68 E-Mail : info@weinausoesterreich.at Internet: www.weinausoesterreich.at

Contact details : Direktion Raumwirtschaft Hintere Zollamtsstraße 2b A-1033 WIEN Tel: 01 711 28 00 Fax : 01 493 43 00 E-Mail : info@statiskgv.at Internet: www.statistik.at

Few large holdings
Austrian vineyards are generally small. Only eighteen are greater than 50 hectares. The three most important are:

Wineries	Size	Region	Exports
Winzer Krems	990 ha	Kremstal	Belgium, Canada, Germany, USA, Scandinavia
Freie Weingärtner Wachau	600 ha	Wachau	Australia, USA, Italy, Japan, France, Scandivania
Weingut Winzerkeller Neckenmarkt	380 ha	Mittelburgenland	Germany

Only 5 vineyards in every 40 000 are larger than 300 hectares, which explains the diversity of most wine-makers. Wine making is increasingly becoming a secondary activity.