The report, McLaren Vale and Riverina Regions: A Survey of Wine Grape Producers, 2003-04 and 2004-05, provides detailed information on the physical and financial characteristics of wine grape farms in the two regions.

The average rates of return to capital (excluding any capital appreciation) in the McLaren Vale and Riverina regions in 2004-05 were 3.4 per cent and 2.4 per cent respectively. Ms Schneider pointed out that this was higher than the average rate of return earned by broadacre producers in that year, which was 0.6 per cent.

"But while the top performing farms earned rates of return of more than 6 per cent in 2004-05, the bottom 25 per cent of farms recorded farm business losses. Results for producers in the Riverina region were lower than those in McLaren Vale."

"Around 40 per cent of wine grape growers in the Riverina region felt they would be less involved in the industry in five years time. This is in stark contrast to the results in the McLaren Vale where more than 90 per cent of growers felt that their future involvement in the industry would be the same or possibly increase," Ms Schneider said.

"Growers in the Riverina region who expected to be less involved in the wine grape growing industry in five years time tended to operate smaller farms with a correspondingly smaller area under vines, have higher than average costs per hectare, and earn lower cash incomes and farm business profit," Ms Schneider said.

"It seems that these are the growers who are under the greatest pressure now that prices have fallen," Ms Schneider concluded.