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May 01, 2006
Australian Growers 'DESERTED' Amidst Wine Glut
The stunning growth of the Australian wine industry has come to a dramatic halt with at least 60,000 tonnes of grapes -- equivalent to 55 million bottles -- left unpicked and almost an entire 12-month supply of wine still in vats from last year.
The Australian Wine and Brandy Corporation estimates the 2006 harvest will be 1.9million tonnes, 1 per cent less than last year, with the quality rated "good to excellent".
Corporation analyst Peter Bailey said up to 3per cent of grapes had been left to wither on the vine after wine companies deserted growers because of the glut.
He said estimates of wine still in storage varied from between 500 million and 900million litres.
"There is also quite a bit of wine left in storage from the last few vintages," Mr Bailey said. "That is making the situation a lot more difficult."
Australians consumed 430million litres over the past year, while 700 million litres were exported. "Our prediction is that it would take four to five years to bring the supply-demand balance back," Mr Bailey said.
Bob Taplin, secretary of the Barossa Winegrape Growers Council, said he believed the corporation's estimate was at the low end of expectations.
"We are estimating in the Barossa region about 10per cent will not be picked or will be picked on to the ground," Mr Taplin said.
"There is also a significant quantity of fruit that is being processed for little more than picking costs."
Source: “Growers 'deserted' in wine glut,” Asa Wahlquist, Business News Australia, April 29, 2006
Posted by fortna at May 1, 2006 07:25 AM
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