Aussie Wine Glut Over

Filed in archive Australian Wines on December 2, 2006

....Well, almost over, which is wonderful news.

While I try to sample wines from all over the world, I have to admit that a good percentage of my wine selections come from Australia.

According to Cheviot Bridge Ltd, the days of dumping grapes may be over sooner than expected. From Wine industry improving: Cheviot Bridge:

Australian wine group Cheviot Bridge Ltd believes the end of the wine glut is in sight and the industry is turning around.

At the company's annual general meeting, Cheviot Bridge chairman Paul Batchelor said there was a likelihood that supply and demand of grapes would reach equilibrium faster than expected.

He said the wine industry had remained very challenging throughout 2005-2006.

"Many participants reported significant losses while some companies restructured their balance sheets and business models," he said.

"Market sentiment has been negative in respect of the industry for several years, largely due to the wine glut.

"That now looks to be ending with the AWBC's (Australian Wine & brandy Corporation) report which halved its estimate of excess supply on an annual basis to 500 million litres."

With the severe frosts in south eastern Australia and the drought, Mr Batchelor predicted production would also fall by about 25 per cent in 2007.

"Year 08 will also see reduced yields," he said.