Cheviot Kirribilly Vineyard Property Group (CKP) has said that there has been "no material shift" in the price of grapes despite a forecast 40% slump in the 2007 vintage.
The Australian wine group, a trust that owns vineyards and sells grapes to third-party producers, today (26 February) became the latest industry player to issue its forecast on this year's harvest.
Michelene Hart, CEO of Cheviot Asset Management, which manages the trust, said a hot, dry summer had combined with a severe drought and frost in spring to cut the vintage by 40%. She insisted, however, that there had been "no material shift" in the price of grapes.
Hart said: "We would anticipate that there will be an improvement in pricing but it may not come through immediately. Indications are that supply and demand will be aligned in 2008, based on 2007 vintage and inventory reductions, so that is when price recovery will be likely."
Cheviot Asset Management and Kirribilly Viticulture, subsidiaries of Cheviot Bridge, manage the trust, which is listed on the Australian Stock Exchange.
Cheviot Bridge owns and distributes over 400,000 cases of wine annually.
Sectors: Wine
