March 6, 2010

Well, at least they have Internet - Chile

Came home to find a spam from a Chilean IP Address (164.77.170.66). Good to see that the various Chilean businesses are getting back online again. Royally sucks about their wine industry though: From AFP:
Chile quake wrecks vineyards, wine stocks
Chile's famous grape-growing region, which has helped propel the country into ninth place among the world's top wine producers, is soberly counting the cost of the massive earthquake.

Growers believe some 12.5 percent of Chile's current production, just coming into the fall early harvest in this southern hemisphere nation, was destroyed by Saturday's 8.8-magnitude quake.

Some 70 percent of the country's vineyards are based in the area struck by the quake -- one of the largest ever recorded -- and then dealt a double whammy when it was swamped by a tsunami.

But growers are optimistic that despite the losses and the damage to grape vines and wineries they will still be able to meet domestic and export targets.

Chile's largest wine growers association, Vinos de Chile, which groups some 92 percent of the country's vineyards, said in a statement that the damage was uneven and still being assessed.

"We've managed to measure the loss at 125 million liters... worth some 250 million dollars," said the association's president Rene Merino.
From the Wine Spectator:
Chile's Wine Industry Estimates $250 Million Loss
Despite strong aftershocks that continued to rumble Wednesday in devastated areas of Chile following Saturday's massive 8.8 earthquake, the wine industry is beginning to get a clearer picture of its situation.

"We are estimating a loss of 125 million liters of wine [about 14 million cases] with a value of approximately $250 million," said Ren� Merino, president of Wines of Chile, who met earlier today with the association's board, comprised of representatives from Chile's largest wineries. The winery-funded group represents 95 percent of the Chilean wine industry.

"While the number might seem high, it is in fact only about 12 percent of what the 2009 harvest was, by comparison. So the loss is not as significant as initially feared," Merino told Wine Spectator this afternoon.

The initial estimate does not specify how much of the wine is bulk versus premium wine as a more detailed assessment is still ongoing. Most of the wineries are insured against earthquake damage, however, with both wine and infrastructure covered, according to Merino. "There will not be a significant financial loss for the wineries."

He added that even with a one- or two-week interruption in the supply chain, stocks of wine in the U.S. market should not be affected. Both of the main shipping ports for the wine industry, San Antonio and Valparaiso, are now open and operating at about 50 percent capacity, according to Merino.

The news came as the country still struggles to assess damage and help the wounded and homeless. According to government sources, the death toll from the earthquake has risen to nearly 800. Overall damage estimates run as high as $30 billion, with about 500,000 homes destroyed and serious damage done to bridges, roads, ports and public transportation. Although a large aid effort is under way, tens of thousands of Chileans remain short of food, drinking water and shelter. In Concepci�n, one of the hardest-hit cities, thousands of government troops were sent in to restore order and prevent looting.

Reports from winery owners have been difficult to get, as communications are still disrupted in many places. Many winemakers and their families were still on their summer vacation when the quake struck, and their return to wineries has been very difficult. "The damage to the infrastructure and houses is extremely severe. It was heartbreaking to see some beautiful old houses completely down," said Jos� Ortega, of Maule-based Bodegas y Vi�edos O. Fournier.

Despite more immediate concerns, the damage assessment for wineries is important to the country as a whole. After copper mining, wine is Chile's biggest industry, and the country will need it to help fuel economic recovery.
Crap -- their wines are really really good. Posted by DaveH at March 6, 2010 6:37 PM
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