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| Introduction |
| The rapid expansion of the Australian wine industry since the mid-1990s has been accompanied by significant industry development, characterised by a shift in focus from the domestic to export markets. In 2001-02 export sales exceeded domestic sales by volume. Currently they represent approximately twice domestic sales. Throughout this period, changing supply and demand conditions for both wine and grapes have resulted in challenging conditions for winemakers and grape growers alike. |
| Projections to 2009-10 |
| The wine grape production estimates presented in this paper are part of a series of projections produced by ABARE since 1988 for the Grape and Wine Research and Development Corporation and its predecessor. This report provides estimates of wine grape production in 2006-07, as well as projections of production in 2007-08, 2008-09 and 2009-10. Estimates of winery intake for each of the specialist wine grape varieties are also included for the 2006-07 vintage. Data on the production and use of multipurpose and minor varieties of grapes are also presented. The specific varieties of wine grapes in each of these categories are listed in table B2. Readers will note the distinction made between warm and cool climate regions. The warm climate grape growing regions include the Riverland, Murray–Darling, Perricoota, Riverina and Swan Hill (table B1). These regions are characterised by a greater reliance on irrigation than cool climate regions, higher yields and generally lower grape prices. Since 2006, ABARE has reported wine grape production using geographical indication (GI) regions as defined in the Register of Protected Names, which is maintained by the Australian Wine and Brandy Corporation. Production projections have been made for each GI region, and these estimates have been aggregated to the zone level (map 1) for the tables in appendix B. The data for each of the regions and zones are available on the ABARE website, abare.gov.au. |
| Industry growth and development |
| Following a series of record crops during the first part of this decade, wine grape stocks in Australia increased with an attendant decline in grape prices from 2000-01 to 2005-06. The relatively small size of the 2006-07 crop has, at least temporarily, ended this trend. Reflecting the smaller crop, the quantity of grapes left on the vine or dropped on the ground slowed significantly in 2006-07. Following a 90 per cent increase in 2005-06, the area of red wine grapes left on the vine or dropped on the ground decreased by 33 per cent to 4715 hectares in 2006-07 (table 1). Similarly, after more than doubling in 2005-06, the area of white wine grapes left or dropped decreased by 28 per cent to 2229 hectares in 2006-07. Based on average regional yields, the estimated quantity of grapes left on the vine in 2006-07 was 45 408 tonnes. The quantity of red wine grapes left on the vine in 2006-07 was down 64 per cent from 2005-06 to an estimated 26 723 tonnes, while the quantity of white grapes left on the vine decreased by 51 per cent to 18 685 tonnes. |
| Wine grape prices |
| Reflecting the reduced availability of grapes and solid demand from wineries, in 2006-07 average wine grape prices across Australia increased appreciably for the first time in four years. Red wine grape prices increased by 14 per cent in cool climate regions and 4 per cent in warm climate regions (figure b). Primarily because of the smaller reduction in grape production in 2006-07, white wine grape prices increased to a smaller extent, up 7 per cent and 2 per cent in cool and warm climate regions respectively (figure c). Using data from the National Utilisation Project (NUP), an average price per tonne of wine grapes can be calculated by variety and region. On average, in 2006-07 red wine grape prices were $1181 per tonne and $399 per tonne in cool and warm climate regions, respectively. White wine grape prices were $1116 and $382 in cool and warm climate regions respectively. There was significant variation in prices across varieties and regions. For example, the weighted average price of shiraz was $1600 in the Adelaide Hills region and $424 in the Riverina region. Similarly, the weighted average price of chardonnay was $2634 in the Tasmania region and $395 in the Riverland region. |
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red grapes |
white grapes |
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ha |
t e |
ha |
t e |
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| South Australia | ||||||
| Barossa Valley | 69 |
274 |
49 |
331 |
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| Mount Lofty Ranges | 191 |
913 |
116 |
781 |
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| Fleurieu | 176 |
1 013 |
36 |
278 |
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| Limestone Coast | 1 001 |
3 854 |
251 |
1 760 |
||
| Lower Murray | 349 |
4 408 |
204 |
3 798 |
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| Other | 20 |
74 |
3 |
20 |
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| Total | 1 806 |
10 535 |
659 |
6 969 |
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| New South Wales and ACT | ||||||
| Hunter Valley | 226 |
719 |
161 |
823 |
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| Big Rivers (excl. Murray–Darling) | 105 |
1 040 |
52 |
677 |
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| Central Ranges | 327 |
1 878 |
156 |
1 096 |
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| Rest of NSW | 214 |
897 |
136 |
788 |
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| Total | 871 |
4 535 |
504 |
3 384 |
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| Greater Victoria | ||||||
| Central | 166 |
547 |
61 |
309 |
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| North East | 353 |
1 504 |
189 |
859 |
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| Port Phillip | 220 |
740 |
106 |
461 |
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| Rest of Victoria | 257 |
642 |
74 |
207 |
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| Total | 995 |
3 432 |
430 |
1 836 |
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| Murray-Darling – Swan Hill | 438 |
5 972 |
336 |
4 786 |
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| Western Australia | 428 |
1 860 |
206 |
1 383 |
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| Tasmania | 37 |
154 |
33 |
136 |
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| Queensland | 140 |
236 |
61 |
191 |
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| Grand Total | 4 715 |
26 723 |
2 229 |
18 685 |
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| e ABARE estimate. | ||||||