AN INCREASE of around 60 per cent in the cost of imported spirits, due to the end of EU funding for the distillation industry in some countries, is expected to make the price of Port rise significantly this year.
The price of the grape-based spirit used to make Port has increased from 90 cents per litre to 1.46 euros per litre, representing an increase of more than 100 euros per barrel.
The main problem is that Port is made with imported spirit from Spain, France and Italy, countries which no longer benefit from EU funding within the distillation industry.
The Douro region in Portugal only produces around 10 per cent of the industry’s requirements of this spirit.
Isabel Marrana, from the Association of Port Exporters, said: “This increase in the price of imported alcohol is serious, especially at such a difficult time and when we are trying to maintain the prices.”
Producers expect that the price of Port could increase to two euros per litre and may only decrease when the Douro region produces around 25 million litres of spirit instead of using imported alcohol.