World wine production in the 2011-2012 season made a significant downward plunge but consumption remained relatively stable. Exports from the EU 27 countries have declined somewhat while they improved slightly in the Southern Hemisphere and in the United States. These trends bring about a drop in stocks and an upward pressure on prices paid for production. World wine market instability is continuing. The positive effects of the new European wine policy and the low levels of world harvests are considerably improving the performances of operators in Europe.