Tough times for wine grape growers

The news is sobering for red wine grape growers in Australia's bulk production areas of the Riverland, Riverina and Murray Darling-Swan Hill.

New economic modelling from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) indicates sustained downward pressure on red grape pricing.

“This report will help businesses to make more informed decisions in the years ahead, while also highlighting the need to increase investment in diversifying our export markets” said Lee McLean, Chief Executive of Australian Grape & Wine.

Australian Grape & Wine’s pre-budget submissions present a range of options for the Australian Government to consider to help drive demand at home and abroad, to innovate in the vineyard and winery, and improve sustainability in the vineyard at a very challenging time for many growers and winemakers, the group says in a press release.

“The effective closure of the $1.2 billion China market was an economic shock to our sector and has contributed directly to the picture painted by ABARES in its report” said McLean.

“As we note in our pre-budget submission, the challenge for industry and government now is to work together to overcome the immediate hurdles while ensuring we invest in a more sustainable future.

“This ABARES report is one of several responses to the recommendations that came from the ACCC Winegrape Market Study targeted to assisting growers understand how the market is performing so they can make informed decisions during the season.

“This independent reporting will help level the playing field for market information along the supply chain.”

Image: Wine Australia