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• Record Australian harvest raises fears of oversupply

• 
  Elizabeth Riadi    Group moderator

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  Record Australian harvest raises fears of oversupply

  Record Australian harvest raises fears of oversupply
  June 21, 2005
  Oliver Styles, and agencies
  
  Australia's 2005 vintage saw a record 1.9m tonnes of grapes harvested, up 6% on last year, according to figures released today.
  
  The Winemakers Federation of Australia (WFA) said the harvest was the biggest in Australia's history as a wine-producing country.
  
  The news will do little to allay fears of a wine glut. However, statistics show that red varieties, thought to be responsible for any future glut, were not behind the rise, showing a marginal increase in production of 0.5% on last year.
  
  Mounting popularity of white varieties is mainly responsible for the record-breaking figures, with their production increasing by 13.5% on 2004. Chardonnay posted the biggest surge with 34% more grapes (416,000 tonnes) being harvested, overtaking Cabernet Sauvignon as Australia's second most popular grape variety.
  
  Shiraz remains the country's most popular grape with 454,000 tonnes being brought into wineries across the country this year.
  
  Stephen Strachan, head of the WFA, said that as well as increased production, the 2005 harvest was showing good quality although this would do little to increase profit margins. He admitted the sector would be facing a challenge.
  
  'These are challenging times for the wine industry, with growth in competition…retail consolidation, discounting and the strong dollar restraining growth in winery margins,' he said. 'While we are selling greater volumes of wine, the value of those sales is not increasing as the industry would like it.
  
  • 23 Jun 2005, 4:49 pm
  Elizabeth Riadi wrote: > Record Australian harvest raises fears of oversupply > June 21, 2005 > Oliver Styles, and agencies > > Australia's 2005 vintage saw a record 1.9m tonnes of grapes > harvested, up 6% on last year, according to figures released today. > > The Winemakers Federation of Australia (WFA) said the harvest was the > biggest in Australia's history as a wine-producing country. > > The news will do little to allay fears of a wine glut. However, > statistics show that red varieties, thought to be responsible for any > future glut, were not behind the rise, showing a marginal increase in > production of 0.5% on last year. > > Mounting popularity of white varieties is mainly responsible for the > record-breaking figures, with their production increasing by 13.5% on > 2004. Chardonnay posted the biggest surge with 34% more grapes > (416,000 tonnes) being harvested, overtaking Cabernet Sauvignon as > Australia's second most popular grape variety. > > Shiraz remains the country's most popular grape with 454,000 tonnes > being brought into wineries across the country this year. > > Stephen Strachan, head of the WFA, said that as well as increased > production, the 2005 harvest was showing good quality although this > would do little to increase profit margins. He admitted the sector > would be facing a challenge. > > 'These are challenging times for the wine industry, with growth in > competition…retail consolidation, discounting and the strong dollar > restraining growth in winery margins,' he said. 'While we are selling > greater volumes of wine, the value of those sales is not increasing > as the industry would like it.
• 
  Christopher Jones

  The company name is only visible to registered members.

  Re: Record Australian harvest raises fears of oversupply

  Hi
  
  'These are challenging times for the wine industry, with growth in competition…retail consolidation, discounting and the strong dollar restraining growth in winery margins,' he said. 'While we are selling greater volumes of wine, the value of those sales is not increasing as the industry would like it.
  In England, Australian wine is the top selling wine. Recently Tesco (I believe) announced that it would be cutting down on its range of Australian wines by a few percent. At the moment will over 100 wines on offer, the choice can simply be daunting for customers.
  
  With the international success and acceptance of Australian wine, a lot more wineries spring up and the big names are expanding meaning the fear of over demand for the broader market is real. The big name wineries are still incubating their premium wines that give them a good reputation to move high volumns of their cheaper wine.
  
  In contrast, there are a lot of smaller Australian wineries, some with long traditions that been moving away from wines for the broader market for years now and are concentrating on producing premium wines, low yields and volumns but high quality. For wine lovers who have discovered these small wineries the balance of price per bottle and total volumn produced is healthier.
  
  • 21 Oct 2005, 10:36 am
  Christopher Jones wrote: > Hi > > > 'These are challenging times for the wine industry, with growth in > > competition…retail consolidation, discounting and the strong dollar > > restraining growth in winery margins,' he said. 'While we are selling > > greater volumes of wine, the value of those sales is not increasing > > as the industry would like it. > > In England, Australian wine is the top selling wine. Recently Tesco > (I believe) announced that it would be cutting down on its range of > Australian wines by a few percent. At the moment will over 100 wines > on offer, the choice can simply be daunting for customers. > > With the international success and acceptance of Australian wine, a > lot more wineries spring up and the big names are expanding meaning > the fear of over demand for the broader market is real. The big name > wineries are still incubating their premium wines that give them a > good reputation to move high volumns of their cheaper wine. > > In contrast, there are a lot of smaller Australian wineries, some > with long traditions that been moving away from wines for the broader > market for years now and are concentrating on producing premium > wines, low yields and volumns but high quality. For wine lovers who > have discovered these small wineries the balance of price per bottle > and total volumn produced is healthier.