Economic and climate challenges in the Mendoza wine region

The Mendoza wine region, a primary producer of Malbec, faces a divide between large, efficient growers and smallholders who struggle with quality standards and economic stability. Climate change is threatening the region's 'oasis' by reducing snow precipitation and glacier area, which provide 70% to 80% of summer water. Current water governance, based on the 1884 Ley de Aguas de Mendoza, is deemed insufficient for these new conditions, leading to suggestions that the region adopt regional groundwater management models similar to California's.

• Mendoza is the primary wine producing region in Argentina, accounting for 69% of the country's grapes and 72% of its wines and musts. It is also the world's leading producer of Malbec wine grapes, producing 60% of the global supply.
• There is a significant economic gap between large and small growers; while the region's international reputation has improved, a majority of Argentine wine—up to 95% in some years—is low quality and produced by thousands of small families who are vulnerable to external shocks like currency fluctuations.
• The region's water supply is highly dependent on the 'oasis' system, where 70% to 80% of summer surface and groundwater is derived from glaciers and seasonal snowmelt. The agricultural sector consumes 80% of available groundwater, with wine production accounting for 70% of all agriculture.
• Climate projections for Mendoza indicate a reduction in glacier area and a decrease in snow precipitation in the valley, which will reduce the water available for irrigation. While no significant climate impacts have been found for 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" from 1884, which distributes water based on registered land. The document argues that this historical framework cannot easily address current climate challenges and suggests updating regulations to include groundwater monitoring and restrictions.

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} }