MORE local wine grape growers are expected to be forced out of the industry after the average prices of major red grape varieties harvested in the region dropped to the lowest in a decade.
According to official 2015 production figures, average prices in the Swan Hill/Murray Darling region for Cabernet Sauvignon dropped by 10 percent to $295 per tonne, Merlot by five percent to $293 per tonne and Shiraz by eight percent to $289 per tonne.
However, white varieties such as Pinot Gris recorded a solid gain of 10 percent to $530 per tonne, while Chardonnay nudged up three percent to $223 per tonne and Sauvignon Blanc rose two percent to $319 per tonne.
Overall, production dropped by eight percent to 381,732 tonnes.
Murray Valley Winegrowers executive officer Mike Stone said more growers would be forced out of the industry this year as a result of another season of prices that generally failed to cover production costs.
He said this year’s average price of $288 a tonne was a stark contrast to the $500 a tonne achieved 10 years ago and the capacity of growers to “hang on” until market conditions improved was limited, even though prospects had improved on several fronts.
“The lower Australian dollar, particularly in North American markets, and recently-signed free trade agreements, will assist in boosting export sales,” he said.
“Wine Australia successfully promotes our wines internationally, but could do a lot more with additional funds.
“Submissions from the grape and wine sector to the Federal Government have recommended tax reform measures as a means of diverting extra funds to Wine Australia.”
The largest variety in the Murray-Darling/Swan Hill regions continues to be Chardonnay (106,793 tonnes), followed by Shiraz (63,819), Cabernet Sauvignon (42,502), Pinot Gris (32,329), Merlot (27,385), Sauvignon Blanc (26,765), Gordo (19,679), Colombard (17,428) and Semillon (12,353).
The Murray-Darling/Swan Hill regions generally account for around 20 percent of Australia’s wine grape production.
Whether or not this ratio remains will be revealed when data for the national crush is released on July 17.
For this and other stories, grab a copy of Friday’s Guardian (July 10).
