For some time now Australia has led the way in excellent wine making, pioneering “New World” wines into the 21st century, holding its own against the more traditional French and Italian winemakers.
However the tables are turning and numerous Aussie winemakers who originally profited from the gold rush are considering jumping ship. Last year alone wine exported from Australia decreased in value by 18 percent and 11 per cent in volume. In the most important markets, Britain and the US, imports fell by 18 and 26 per cent respestively.
Times were hard for the $2.4bn industry following a major drought anyway, but add to that the global economic meltdown and the future of wines from ‘down under’ looks uncertain. Another problem adding to the strain is the image Australian wine has - traditionally it was sold as a cheap, easy-to-drink plonk, yet a lot of the wine produced there does not quite match up to that.
Still, winemakers over there shouldn’t complain too much - it is the first set back they have had in 15 years. Throughout that period Australian reds and white happily put themselves in a niche of reliable, easy options. However in Novermber sales dropped dramatically with a 26.3 per cent drop in exports in just one month.
Winsor Dobbin, wine writer for the Sun-Herald newspaper reported that, “A lot of growers have said they are just going to let the fruit drop and not even bother to pick it.”
Ironically, the slump has come at a time when harvests are producing wonderful produce following unusual rains and a hot summer.
Doonkura Winery - a vineyard based in the cool-climate region north of Canberra, decided to triple their produce in expectation of boom in demand from China. Chief wine-maker there, Bruce Marchm said, “We set up to produce all this wine. We spent a lot of money, and then bang, the financial crisis hit us.”
China has just began to get into wine and were the toast of exporters last year with such a high demand. Mr March said, “Now we’re tightening belts and we’re into survival mode.”
Tim Kirk, owner of the Clonakilla winery based near Doonkuna, thinks the industry have got a rough ride up ahead, “We’ve had massive success with an approach of good wine, good price, cheap and cheerful, sunshine in a bottle. But in some respects that’s been the seeds of our undoing. Rather than compete on good wine, great price, we need to focus on regionality, on great wine at maybe a good price. Australia produces world-beating whites and reds, but that is not, generally, how its wines are viewed overseas.”
In addition Mr Kirk remarked, “We have ancient soils, every bit capable of standing shoulder to shoulder with the great wines of Europe. Australia needs to grow up.”
Indeed experts believe there are too many winemakers in the country - 25 per cent too many to be exact. Unfortunately there are some vineyards out there producing poor quality wine in large volumes to make a quick buck. Mr March said, “I reckon a few growers round here will be pulling out vines by the end of the year.”
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For some time now Australia has led the way in excellent wine making, pioneering “New World” wines into the 21st century, holding its own against the more traditional French and Italian winemakers.
However the tables are turning and numerous Aussie winemakers who originally profited from the gold rush are considering jumping ship. Last year alone wine exported from Australia decreased in value by 18 percent and 11 per cent in volume. In the most important markets, Britain and the US, imports fell by 18 and 26 per cent respestively.
Times were hard for the $2.4bn industry following a major drought anyway, but add to that the global economic meltdown and the future of wines from ‘down under’ looks uncertain. Another problem adding to the strain is the image Australian wine has - traditionally it was sold as a cheap, easy-to-drink plonk, yet a lot of the wine produced there does not quite match up to that.
Still, winemakers over there shouldn’t complain too much - it is the first set back they have had in 15 years. Throughout that period Australian reds and white happily put themselves in a niche of reliable, easy options. However in Novermber sales dropped dramatically with a 26.3 per cent drop in exports in just one month.
Winsor Dobbin, wine writer for the Sun-Herald newspaper reported that, “A lot of growers have said they are just going to let the fruit drop and not even bother to pick it.”
Ironically, the slump has come at a time when harvests are producing wonderful produce following unusual rains and a hot summer.
Doonkura Winery - a vineyard based in the cool-climate region north of Canberra, decided to triple their produce in expectation of boom in demand from China. Chief wine-maker there, Bruce Marchm said, “We set up to produce all this wine. We spent a lot of money, and then bang, the financial crisis hit us.”
China has just began to get into wine and were the toast of exporters last year with such a high demand. Mr March said, “Now we’re tightening belts and we’re into survival mode.”
Tim Kirk, owner of the Clonakilla winery based near Doonkuna, thinks the industry have got a rough ride up ahead, “We’ve had massive success with an approach of good wine, good price, cheap and cheerful, sunshine in a bottle. But in some respects that’s been the seeds of our undoing. Rather than compete on good wine, great price, we need to focus on regionality, on great wine at maybe a good price. Australia produces world-beating whites and reds, but that is not, generally, how its wines are viewed overseas.”
In addition Mr Kirk remarked, “We have ancient soils, every bit capable of standing shoulder to shoulder with the great wines of Europe. Australia needs to grow up.”
Share and Enjoy:Indeed experts believe there are too many winemakers in the country - 25 per cent too many to be exact. Unfortunately there are some vineyards out there producing poor quality wine in large volumes to make a quick buck. Mr March said, “I reckon a few growers round here will be pulling out vines by the end of the year.”