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On Greek island of Santorini, winemakers try to adapt to heat and drought

Published by Global Banking & Finance Review

Posted on June 29, 2026

3 min read

· Last updated: June 29, 2026

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Santorini Winemakers Face Heat, Drought, and Rising Costs Amid Climate Change

Challenges and Adaptations in Santorini's Wine Industry

By Deborah Kyvrikosaios

Impact of Climate Change on Vineyards

SANTORINI, Greece, June 29 (Reuters) - In a vineyard on the Greek island of Santorini, winemaker Yiannis Boutaris gestures to a dried-up ‘kouloura’ vine trained into the shape of a basket to protect the grapes from the gruelling summer sun. The plant endured for 90 years but was finally killed by heat and drought.

Its fate highlights a growing problem on Santorini, where low rainfall and searing temperatures from 2023-2025 have increased the price of grapes, slashed wine production and intensified concerns over water supply - an issue blighting much of Greece as climate change makes summers hotter and rainfall more erratic.

“The lack of rain, in combination with the lack of cultivation, in the last couple of years has led to these old vineyards really dying," said Boutaris, whose winery has its own vineyards and also buys grapes - including from the vineyard with the dying vines.

"The main thing for our winery is we are not abandoning tradition ... we are adapting the vineyard to the new circumstances."

Innovative Techniques for Sustainability

Water Management Solutions

GREECE'S ANCIENT VINEYARDS TRY NOVEL TECHNIQUES

Boutaris, a sixth-generation winemaker who runs the Domaine Sigalas winery, now part of the Kir-Yianni family of wineries, is testing a pilot project with local authorities and scientists to take wastewater from homes and hotels to irrigate the vines.

They say the practice, also used in California, could be more sustainable and energy-efficient than taking water from expensive desalination plants.

Adapting Vineyard Practices

Boutaris is also testing planting vines in rows rather than scattered in the traditional way, to make irrigation more efficient, and atmospheric water harvesting. This captures moisture from the air in hydrogels, then extracts it as water with heat generated by solar panels.

Competition for Resources

Wine growers are at the centre of a wider contest for land and water in Greece.

In the warmer months, when millions of tourists descend on islands like Santorini, farmers, hotel owners and swimming pool operators often compete for a share of the dwindling water supply. 

Economic Impact on Wine Production

Production Decline and Price Increases

Production of Santorini's famous Assyrtiko grape fell from 2,500 metric tons in 2022 to just 500 tons last year. Winemakers are paying farmers 10 euros ($11) a kg, the kind of prices seen in prosperous regions like Champagne. In northern Greece, which is less hot, a kilo goes for just 80 cents. 

Expert Perspectives

“Santorini reached a limit of dramatic conditions in 2023 and 2024,” said Stefanos Koundouras, a professor of viticulture at Aristotle University in Thessaloniki. He said the temperatures were the hottest in 60 years.

Koundouras said the wine sector could become less sustainable all over Europe, particularly around the Mediterranean, if it keeps getting hotter and drier.

“We are already seeing problems in the quality and special character of the wines."

Future Outlook and Adaptation Strategies

New Irrigation Methods

Winemaker Yiannis Papaeconomou is also planning to tap into the wastewater project for his 6-year-old vines. 

He has been trying other techniques such as a system that irrigates the vines underneath the soil rather than from above, to reduce evaporation, as well as trellising them so they can be watered more efficiently. 

Adopting a New Mindset

“So we must adapt and proceed in a new way of thinking and, you know, find a way out,” he said.

($1 = 0.8772 euros)

(Editing by Edward McAllister and Kevin Liffey)

Key Takeaways

  • Santorini’s iconic Assyrtiko grape faces record-low yields—production plunged from roughly 2,500 t in 2022 to just 500 t in 2024–25—forcing grape prices up to €10/kg, on par with Champagne-level pricing, while northern Greece sees only €0.80/kg (decanter.com).
  • Domaine Sigalas and other producers are pioneering water-saving pilots using treated municipal wastewater, smart drip irrigation, and desalination to reduce freshwater use by ~30% and sustain vineyard productivity (eu-cap-network.ec.europa.eu).
  • Traditional ‘kouloura’ basket-trained vines—some over a century old—are succumbing to stress, prompting shifts toward denser planting, mulching, trellising, and even atmospheric water harvesting as adaptation strategies (decanter.com).

References

Frequently Asked Questions

How has climate change affected wine production in Santorini?
Rising temperatures and drought have reduced grape yields, increased prices, and threatened the traditional vineyards of Santorini.
What innovative methods are Santorini winemakers using to combat drought?
Winemakers are testing wastewater irrigation, atmospheric water harvesting, and planting vines in rows for more efficient irrigation.
Why are grape prices increasing in Santorini?
Low rainfall and heat have drastically reduced grape supply, driving prices up to 10 euros per kilogram, similar to top wine regions.
What challenges do winemakers face during Santorini's tourist season?
Winemakers must compete with hotels, farmers, and pool operators for the limited water supply during peak tourist months.
What impact could ongoing climate change have on European wine regions?
Experts warn that if temperatures keep rising, wine production and unique wine qualities across Mediterranean Europe may become unsustainable.

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