Each hectare of vineyard will produce 32 hectolitres (3,200 litres) of wine in 2003, a seven-percent increase over the figure for the previous year, INE estimated in its latest monthly agriculture forecast.

"Even though the heatwave during the first weeks of August scorched grapes in some cases, we continue to predict an increase in (wine) production when compared to last year," it said.

The scorching heat and dry weather did take a toll on fruit production, with the statistics office predicting the pear crop will fall five percent in 2003 over the previous year while the apple harvest will drop by 30 percent.

Almond production, which is concentrated in the parched southern province of Algarve, is expected to fall by 15 percent in 2003 in part because of the heat.

But overall the statistics office said the effects of the hot weather on agriculture would be kept to a minimum because farmers were able to irrigate crops with water from reserves, which remained well stocked during the heatwave.

Corn production is expected to stay unchanged in 2003 from last year, while the tomato and rice harvest is expected to be larger, INE said.

TERRA.WIRE