Grape growers in Australia’s largest wine region are finding ways to turn the red wine oversupply into an opportunity to sustain their businesses amid a dire vintage 2023 outlook.
Key points:
- Hard pruning, rejuvenating vines and diversifying crops are some of the options being explored
- The growers’ co-op is launching a new wine label to create an alternative revenue stream for members
- Accolade Wines says it is having to adjust along with the growers
Crisis meetings have been held across the region after multinational company Accolade Wines announced it would compensate growers to mothball their red grape vines or switch to white varieties.
Third-generation Barmera grower Brian Caddy said reducing his cabernet sauvignon crop by 30 per cent has provided a chance to rejuvenate his old vines.
“To me they’ve served their purpose — they’re getting very difficult to harvest by machine so I’m going to re-trellis them,” he said.
Mr Caddy has had the canopy of his vines chopped off and the trunks halved, which will stimulate growth in the long-term.
“It’ll be at least two years before we get some decent crops out of it,” he said.
Keeping costs down
With prices per tonne expected to be low next year, Mr Caddy said keeping production costs down was crucial.
“I’m retired, virtually, so I will just pop around to do my irrigation as I’ve done in the past,” he said.
“We use a minimum amount of water — just about half of what the average is for wine grapes in Riverland — and we still produce the same tonnage.”
Mr Caddy said he was concerned about the boom and bust cycle of wine varieties.
“I do feel sorry for those growers who have planted shiraz, for instance, in the last two or three years, as required by the wineries,” he said.
“They must be heartbroken.”
Not business as usual
Riverland Grape Growers Association deputy chair Brett Rosenzweig said decisions about vineyard management should focus on reducing financial loss.
“As much as growers don’t like looking at spreadsheets, I think this is a year to do that,” he said.
Mr Rosenzweig said he planned to increase his crop diversity by planting more almonds and swapping cabernet sauvignon and shiraz grapes for white grapes.
“Whether that is the best solution long term I don’t know,” he said.
“But it’s just what I’ve decided to do for my business and hopefully it ends up being the right [choice].”
Multinational company Accolade Wines, which takes grapes from the Riverland’s grower cooperative, says close to 600 hectares of vineyards need to be switched from red to white or taken out of production.
Accolade chief supply chain officer Derek Nicol said other regions were having similar discussions.
“We’re all having to, you know, adjust and share the burden in a very tough environment,” he said.
When life gives you grapes …
The Riverland cooperative is offering some relief by developing a new label aimed at the US and Vietnam.
CCW cooperative commercial manager Melanie Kargas said Heart of the Murray would provide an alternative revenue stream for its members.
“The opportunity came up where people were actually looking for packaged product,” she said.
“We have opportunities to promote the region — Riverland is actually on all of our labels.
“It also gives our growers something to be proud of.”
With CCW having celebrated its centenary this year, Ms Kargas said she hoped the initiative would help sustain the industry.
“To a certain extent it’s scattering our risk and making the crop a little bit more steady so we’re here for another 100 years,” she said.
