New economic modelling from ABARES indicates sustained downward pressure on grape pricing across Australia’s key production regions of the Riverina, Riverland and Murray Darling-Swan Hill.
The report highlights the need to increase investment in diversifying our export market. Australian Grape & Wine’s Pre-Budget Submission presents a range of options for the Australian Government to consider to help drive demand at home and abroad, to innovate in the vineyard and winery, and to improve sustainability. It emphasizes the significant economic challenges currently facing growers and winemakers.
ABARES’ quarterly winegrape market report has been made possible by the Australian Government’s Improving Market Transparency in Perishable Agricultural Good Industries grants program. The grant enabled Australian Grape & Wine, the Inland Wine Regions Alliance and Wine Australia to collaborate with ABARES to help improve winegrape pricing information. We are very fortunate to have access to ABARES’ considerable resources and economic expertise in the field of agricultural forecasting.
This initiative will contribute towards addressing the recommendations that came from the ACCC Winegrape Market Study. By helping growers understand how the market is performing it will contribute help to level the playing field during price negotiations at the same time as assisting growers to make better-informed informed decisions during the season. The report will complement other information available to our sector, including Wine Australia’s National Vintage Survey, which will be released in early July.
Quarterly forecast reports will be based on a broad suit of quantitative and qualitative price indicators including seasonal climatic conditions, associated yield and disease impacts, the latest domestic and export sales data, historic grape prices and inventory levels, along with several other global market indicators.
The forecasts do not account for a scenario where trade restrictions with China are eased. While we are cautiously optimistic about the improvements in the relationship between Australia and China, even in a substantially improved trading environment re-establishing this market will take time. In the meantime, we will continue to encourage ongoing investment in trade diversification and expansion through the Australian Government’s Agricultural Trade and Market Access Cooperation program.