Economic and climate challenges in the Mendoza wine region

This briefing by the Stockholm Environment Institute examines the socio-economic and climate-related vulnerabilities of the Mendoza wine region in Argentina. It highlights a divide between large, efficient growers and smallholders who struggle with quality standards and economic stability. The document also analyzes the region's dependence on mountain snowmelt and glaciers for water, noting that current water laws are outdated for current climate trends, and suggests looking to California's groundwater management as a potential model for reform.

• Mendoza is the primary wine-producing region in Argentina, accounting for 72% of the country's wines and musts and 69% of its grapes. It is the world's leading producer of Malbec wine grapes, with 60% of Malbec wine produced in the region.
• The region's wine industry suffered a major crisis in the 1980s due to an overstock of low-quality wine that failed to meet international standards. This led to the closure of numerous wineries and the eradication of 100,000 hectares of wine grapes, including 35,000 hectares of Malbec vines.
• There is a significant economic gap between large and small growers. While the region's international reputation has improved, smallholders—who produce a majority of the grapes—often produce low-value wine (up to 95% of Argentine wine in some years) and struggle to meet international quality standards, making them vulnerable to economic shocks like currency fluctuations.
• Mendoza's agricultural production relies on an 'oasis' sustained by shallow groundwater and snowmelt. Approximately 70% to 80% of summer surface and groundwater comes from glaciers and seasonal snowmelt. The agricultural sector consumes 80% of available groundwater, with wine accounting for 70% of all agriculture.
• Climate projections for the region indicate a reduction in glacier area and decreases in snow precipitation in the valley, which will reduce the water available for irrigation. While there are no significant climate change impacts on Malbec phenology, water shortages are identified as the primary vulnerability for the variety.
• Water distribution in Mendoza is still primarily governed by the 'Ley de Aguas de Mendoza' created in 1884. The document argues that this law and current regulations are unable to address new climate challenges and suggests that Mendoza could adopt a regional water management framework similar to California's Sustainable Groundwater Management Act.

APA

Forni, L. (2018). Economic and climate challenges in the Mendoza wine region. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2018/03/forni-mendoza-db.pdf

Chicago

Forni, Laura. Economic and climate challenges in the Mendoza wine region. Stockholm Environment Institute, 2018. https://www.sei.org/wp-content/uploads/2018/03/forni-mendoza-db.pdf.

Wikipedia

{{cite report |last1=Forni |first1=Laura |title=Economic and climate challenges in the Mendoza wine region |publisher=Stockholm Environment Institute |date=2018 |url=https://www.sei.org/wp-content/uploads/2018/03/forni-mendoza-db.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forni2018economic, author = {Forni, Laura}, title = {{Economic and climate challenges in the Mendoza wine region}}, institution = {Stockholm Environment Institute}, year = {2018}, url = {https://www.sei.org/wp-content/uploads/2018/03/forni-mendoza-db.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }