Negative sentiment surrounding Australia’s US$1.63 billion wine export industry is threatening long-term damage to the sector, according to a report from KPMG Corporate Finance.
The report said current concerns were overblown and could lead to other nations stealing Australia’s market share. “Increased wine market volatility since 2000 has brought a measure of paralysis to the Australian industry. This paralysis extends across wineries, financiers and growers,”
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Alexandra McPhee, author of the KPMG report, wrote that more grapes needed to be planted or the industry would risk losing to overseas rivals.
“We don’t believe there is a medium term structural over-supply.” The report added: “The trap of six monthly reporting detracts from the industry’s requirement to take a medium to long-term view.”
