Predictions of Dropping Wine Prices

Filed in archive Australian Wines on June 21, 2006

Things are so bad for a good number of Aussie wine growers that some are advising them to not even grow a 2007 crop. The idea is that it may not be worth the cost of growing and harvesting, and then of course, it might also help with the grape glut so many wineries are currently experiencing.

The latest from Rock bottom price warning for growers:

PRICES for wine grapes are expected to hit "rock bottom" next year, industry body Wine Grape Growers Australia has warned.

As part of a fresh call for growers to severely cut back their vineyard production, WGGA executive director Mark McKenzie said growers without a viable market for the 2007 vintage should consider whether they should grow a crop at all this year.

"In all likelihood, spot market prices of only $100 to $150 per tonne will be offered - well short of their growing costs," he said.
It typically costs growers between $200 and $800 to produce a tonne of wine grapes, he said.

Mr McKenzie said winemakers at this month's National Wine Grape Summit in Melbourne had stated "very clearly" that they only needed a 1.5 million tonne intake in 2007.