Aussie Wine in the Red

Filed in archive Australian Wines on June 20, 2006

I am reading more and more about the problems West Australian wineries are having with their overproduction of grapes. It's really a shame after they spent so many years creating a strong industry that produces some awesome Pinot Noir and Shiraz.

As a consumer you'd think we'd see more wines at lower prices so they could unload it, but even if that happens, it could mean eventually losing a lot of good quality wines in the future.

Here's more on the problem from When WA Wine Go Bad:

Throughout the 1990s, the industry could not keep pace with demand. Hectare upon hectare was planted, but now the overplanting and big yields have tipped the balance and demand cannot keep pace with supply.

Some experts say hundreds of hectares need to lie fallow for two years to correct the imbalance. Others believe struggling growers should shut up shop.

John Griffiths, president of the Wine Industry Association of WA that represents grape growers and producers, said: ``Everyone's doing it pretty tough.

``There are growers who were not able to sell fruit this season, those who could only sell at low cost, some who lost grapes through disease.''

Margaret River grapes have been selling for $1500 a tonne on average, but in some cases growers have been forced to sell for less than it cost to actually pick them.

It all goes back to the '90s boom.