Australias latest vintage has leapt compared to 2012

Australia's latest vintage has leapt compared to 2012

Australia's latest grape harvest has “not been matched by a lift in demand" for the country's wines, according to the Winemakers' Federation of Australia.

Figures released by the trade body earlier today (28 June) show that the 2013 vintage came in 10% higher than the previous year's, hitting 1.83m tonnes. Consequently, a 9% lift in grape prices in the country last year “will be difficult to sustain next vintage”, the WFA warned.

Chief executive Paul Evans said: “Following a number of lower vintages, the 2013 crush reminds us that the production potential of the Australian industry remains too high and is not in balance with local and international demand for our wine.

“The large crush … will place further downward pressure on prices and profitability throughout the commercial wine segment over the coming vintage.”

Evans said that consumers will be “the big winners” thanks to “consistently high” quality levels from this year's vintage.

“While the recent decline in the value of the Australian dollar is welcomed and an emerging global shortage may help bulk wine prices in the longer term, the sustained recovery of lost volume in international markets at profitable price points will require a concerted effort from both individual companies and the industry on a number of fronts,” said WFA president Tony D’Aloisio.

“Internationally, we need to re-engage with consumers, distributors and industry gatekeepers in our key export markets. Locally, we need to improve margin in a highly consolidated retail market, anticipate emerging consumer trends and take back share from imports.”

To read the full vintage report from WFA, click here.