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German Wine Sector Declares 'Historic Crisis' Despite High-Quality 2025 Vintage

Bulk prices far below production costs are squeezing wineries despite a much-praised vintage.

Overview

  • The German Farmers' Association’s year-end report calls the situation a historical crisis, with the 2025 harvest at 7.3 million hectoliters, 16% below the 10-year average and the lowest since 2010.
  • Bulk wine traded at €0.40–€0.60 per liter against estimated production costs of about €1.20, leaving producers selling at a loss.
  • German wine’s domestic market share has fallen to 41% as supermarkets dominate sales, while U.S. tariffs pressure the industry’s most important export market.
  • Producers report difficulty finding seasonal labor and coping with higher wage costs, especially on steep slopes where mechanization is limited.
  • Plant health risks are rising as Flavescence dorée was confirmed at three sites in Baden-Württemberg, prompting recommendations to uproot infected vines and use insecticides, while the DUH challenges 2025 aerial and drone spraying permits over species protection concerns.