(TheWeek) - Global wine production is expected to fall to its lowest level in over half a century this year, the International Organisation of Vine and Wine (OIV) has warned.

The OIV, which monitors wine output around the world, has blamed the decline on extreme weather in three of the world’s top wine producing countries.

According to estimates, wine production in Italy, France and Spain is expected to fall by 23%, 19% and 15% respectively. Despite forecasts for wine-growing regions outside Europe being more optimistic, with Australian production expected to rise 6% and Argentina by as much 25%, this is not enough to offset losses in old-world producers.

The impact of this would be to see overall global wine production fall 8% from last year to about 247 million hectolitres, the equivalent of 1,857,142 bottles of a wine. This in turn “could raise prices and dissipate a global surplus caused by a demand slump in the wake of the financial crisis”, says the BBC.