France forecast wine production will climb 10 percent this year as the Bordeaux region, home to Chateau Margaux and Petrus, recovers from the worst grape harvest in more than two decades.

The 2014 vintage may reach 46.45 million hectoliters (1.23 billion U.S. gallons), the most wine in three years, from 42.37 million hectoliters last year, the Agriculture Ministry said in an online report.

French wine production was unusually small in 2012 and 2013 as vintners were waylaid by failed flowering, hail and grape rot, with Bordeaux volumes last year falling to the lowest since 1991. This year’s reversal contrasts with Italy and Spain, where wine volume is predicted to slide.

“Harvests were able to start in optimal conditions in most regions, and by Oct. 1 the bulk of vineyards was picked,” the ministry wrote. “In Bordeaux, the sanitary situation is very satisfactory after warm and dry September weather.”

The outlook was trimmed from 46.93 million hectoliters a month ago on grape damage in Alsace and Languedoc-Roussillon, the ministry said.

Spain has predicted output of wine and must, or non-fermented grape juice, will fall 25 percent to 40.35 million hectoliters, while Italy’s wine union predicts the country’s 2014 vintage may drop 15 percent to 40.9 million hectoliters. That would leave France as the world’s biggest wine producer this year.

France’s volume of designated-origin wines is seen jumping 17 percent to 21.99 million hectoliters. Wine for distilling is seen rising 11 percent to 8.71 million hectoliters.

White-Wine Grapes

In Bordeaux, France’s biggest wine-exporting region, production is forecast to surge 52 percent to 6.01 million hectoliters from last year’s 3.97 million hectoliters. The harvest of white-wine grapes is done, and picking for reds started at the end of September, the ministry said.

Burgundy and Beaujolais output may rise 9 percent to 2.24 million hectoliters from 2.06 million hectoliters. September weather allowed for optimal coloring of the grapes, even after hail in June damaged vines in Burgundy’s Cote d’Or, according to the report.

Burgundy’s grand cru vineyards are France’s most expensive wine property, with prices last year climbing 5.3 percent to an average 4 million euros ($5.07 million) a hectare. The region boasts the world’s most expensive wines, headed by Domaine de la Romanee-Conti, according to a ranking by Wine-Searcher.

In Charentes, the home of cognac, volume is predicted to climb 12 percent to 8.82 million hectoliters from 7.88 million hectoliters, with a warm and dry September halting the development of botrytis and mildew fungal disease.

Distilling Cognac

Harvest of the ugni blanc grapes used for distilling cognac started late September, with “clearly” higher-than-usual grape weight compensating for a reduced fruit count, the ministry said. Cognac brands owned by French producers include Remy Cointreau SA’s Remy Martin.

In Alsace, production is predicted to advance 7 percent to 1.07 million hectoliters from 993,000 hectoliters.

In the Champagne region, production is forecast to advance 13 percent to 3.2 million hectoliters. LVMH Moet Hennessy Louis Vuitton SA, based in Paris, is the world’s largest maker of champagne, with brands including Moet & Chandon and Dom Perignon.

In Languedoc-Roussillon, France’s biggest wine region by total volume, production is seen falling 11 percent to 12.1 million hectoliters from 13.58 million hectoliters following spring drought.