Wine glut corrected by global warming


Global warming may have delivered Australia’s embattled wine industry a much-needed boost, with this year’s unfavourable weather conditions expected to significantly reduce the damaging wine glut.
Frost, drought and pressure on irrigation supplies are expected to ensure smaller yields from the 2007 vintage and potentially the 2008 season but the Australian Wine and Brandy Corporation has warned the difficult conditions will not eliminate the current oversupply. Speaking at the ANZ WA Wine Industry Outlook Conference yesterday, AWBC information and analysis manager Lawrie Stanford said the difficult weather conditions were likely to reduce the time it took for the industry to regain an even keel. However, Mr Stanford said the low-yielding seasons would not be a total solution to the current oversupply and he poured cold water on talk of a looming grape shortage. “It is important to note that current plantings have the capacity to meet projected demand over the next five years,” he said. “We need to recognise that the future holds slower rates of growth as the industry consolidates and in the face of intensified international competition.” Overseas demand for Australian wine is expected to increase 33 per cent by 2011. This compares with just 2 per cent growth in demand from Australian drinkers over the same period. Xanadu manager and group winemaker for the Rathbone family’s three vineyards, Darren Rathbone, was more upbeat about the outlook, predicting the national industry would be stronger than ever within three years. “I hope it will sort out a lot of the people who went into vineyards as an investment rather than as an industry,” Mr Rathbone said. “There are a lot of people who got promised a lot of things that weren’t really possible, the idea that people could invest in viticulture and make high returns in five or six years was an unrealistic outlook and that is coming back to bite people now.” Mr Rathbone said the hard times also provided opportunities for businesses to pick up new vineyards at good prices but he warned investors to sort the wheat from the chaff. “I think it is important to stay focused on what we are good at . . . at the same time you need to be aware of what people want to drink,” he said. “We have made all the investment that we are going to for the short term but what we do two, three, four years from now is still open.” The peak performers in WA’s wine industry were recognised last night at the ANZ Wine Industry Awards. Hartley Estate won the most outstanding new vineyard award. The award for the best winemaking facility was shared by Evans and Tate and Watershed Premium Wines. CATIE LOW