Australian wine vintage 2010

april 20,2011

Analysis
The 2010 wine vintage (harvesting of grapes) is Australia is drawing to a close.

Assessments of it are coming in from industry analysts, winemakers and wine reviewers anticipating how 2010 vintage wines will turn out once vinified.

From an economic and industry performance perspective, the total tonnage of grapes is likely to be down significantly on last year’s (bumper) harvest. Depending on your point of view this is bad news (some grape growers are receiving offers for their grapes well below their costs of production) or good news (the wine industry’s biggest problem – oversupply – is partially addressed by reduced harvest size).

The endemic oversupply in the industry inevitably means lower prices for grape growers, particularly those without long term contracts. I feel deep empathy for the literally thousands of grapegrowers in regions such as the Riverina (around Griffith) who have stoically hung on through years of weakening demand and pricing, and for many of whom this year will destroy their businesses. Many have run out of cash and have borrowed all they can. Their vineyards will either be ripped out to be replaced with another crop or – for those who cannot afford this transition – their vines will be left to die without water.

So, we are starting to see a net reduction in the hectarage of grapes in Australia. One part of me is grateful that the endemic oversupply problem will, gradually, be addressed, although with Australia’s growing penchant for imported wines, another countries oversupply merely becomes our cheap wi