Portugal in trouble by drought.

Drought and water shortage reduce the harvest of Portugals famous wine regions. Both, the Douro and the Alentejo regions reported negative effects on this year's harvest.

The Douro river, which flows through Spain to Portugal (in Spain it's called Duero) has dropped below the agreed water levels. The Portuguese government is demanding compensation from the neighbour Spain.

The Port Wine Institute has reduced the permitted harvest yields by five per cent, compared to last year.

Experts have forecast a significant price increase up to ten per cent for port.

Source: agencies, decanter etc.