LOCAL wine grape growers are increasingly abandoning the industry as continually low prices make it difficult to justify growing the crop.
During the past two seasons prices have been among the lowest in a decade, and the Murray Valley Winegrowers (MVW) growers’ database shows that during this period, 105 families have quit growing.
It’s really chewed away at our growth margins and we’ve seen a number of growers pack up and leave the industry, remove vines and abandon them
More than 3700 acres across the region have been discarded in the past two years, while the total amount of grapes harvested over the past year was down by 45,000 tonnes.
Swan Hill Wine Region Grape Growers Association chair Chris Dent said there were no direct statistics for the Swan Hill region alone, but the MVW’s data accurately reflected local trends.
“Absolutely we’ve observed impacts. It’s really chewed away at our gross margins and we’ve seen a number of growers pack up and leave the industry, remove vines and abandon them,” Mr Dent said.
“Growers have different situations based on contracts with wineries and how their positions are there, as well as debt levels and water licenses, and all those sorts of things contribute to that decision to leave the industry.
“Some growers have been able to continue, albeit under some strain, but not as much as others who have decided to call it quits.”
For more on this story, grab a copy of Wednesday’s Guardian (October 21).
