Australian vineyards start to rot
Wednesday September 9, 2009
Australian wine growers are turning their backs on their vineyards as the prime growing season for grapes arrives.
A lack of water, slow export markets and too much grape production are all factors that have been said to contribute to growers abandoning their crops, with the wine industry predicting more than a quarter of Australian growers will be forced to give up their farms in the next two years.
Grape grower near Murray Goulburn Victoria, Dougal Leslie, however, has ceased maintenance to his vines in 2009.
"You've got a severe water shortage down here," he told the ABC News Online. "Unless it rains in our catchment areas we may only end up with 20 percent of our water allocation by February. So all in all I just felt there was no hope.
"The wife and I decided it was pointless carrying on so we just decided to sell our water allocation, sell all the machinery, and I've just gone and got a job."
The other concern is the slowing down of major export markets. Wine Grape Growers Australia executive director, Mark McKenzie says the slow began last year, and it has only exacerbated with the global financial crisis.
"We find ourselves in a situation where our plantings are overheated," he said. "Even looking optimistically at the likely renewal of market growth, it is unlikely that we are going to be able to soak up all the vineyard production and wine production flows from that."
Because the high Australian dollar is forcing the industry out of the market, wine countries such as South Africa, Chile and Argentina, that are producing cheaper wines, are better able to flood the market.
"We've lost about $650million worth of export value over the last 18 months or so," said Mr McKenzie.
The other major concern is oversupply of fruit - after the expected amount is not bought - is prompting a number of growers to give up their vineyards.
Western Australia's Ferngrove Vineyards Estate chief executive Anthony Wilkes says south-west growers are susceptible to the excess-fruit problem.
"There are certainly a lot of people out there doing it quite tough and particularly grape growers who are at the grassroots level who rely on wineries to have a contract," he explained. "And the wineries can only give grape growers contracts if they know they have a demand for that product."
SOURCE: ABC News Online
