Tuesday, August 26, 2008

2007 Wine Grape Crush Information

Commercial Reality

The Phylloxera and Grape Industry Board of SA has published the SA Winegrape and Pricing Survey 2008. This survey always thrown up some heavy debate particularly in regards to the ‘district average area price,’ now called calculated average purchase price. Again this will spark debate - the district average area price for McLaren Vale Shiraz is recorded as 15% higher than the Barossa Valley at $1,900 vs $1730. The Adelaide Hills was reported to be $1,699.

It is worthwhile considering the production figure too. Earlier in the year the total production in Australia was reported to be 1.8 million tonnes. The WFA reported; ‘2008 the Australian wine industry’s winegrape intake increased by almost 31% over the 2007 vintage to an estimated crush of 1.83 million tonnes.’

The Riverland was just over 400,000 tonnes, when it has been as high as 800,000 tonnes! The Riverland was 1/2 its peak production. Yet Australia has a big crush.

Either some of these figures are wrong, or grape production has rapidly increased interstate! If these figures are right than if/when full irrigation licenses return to the Riverland the expected grape crush will be massive. An obvious prediction based on these figures would be 2.2 million tonnes.

Also for debate the total McLaren Vale production was reported as 54,602 tonnes as compared to in the drought affected 2007 harvest on 33,000 – a 40% increase.

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