Wine Industry Report

The 2006 Australian winegrape harvest is all but complete with a harvest of 1.9 million tonnes of good-to-excellent quality expected.

The 2006 crush is 1% lower than the last year’s record tonnage. While yields (tonnes per hectare) are around 5% lower than last year, they are still above average. New bearing areascoming on stream has somewhat offset the impact of lower yields, particularly for whites.

The tonnage figure does not take into account grapes that may be left on the vine. It is estimated that 2-3% of last season’s crop was left on the vine and there is every possibility of a repeat this season. If the estimates are correct, the total crop for 2006 will have been 1.96 million tonnes.

The measures taken by growers to reduce red yields in response to low prices and in accordance with tonnage caps sought by wineries saw the red crush fall 5% to 1.02 million tonnes, 54% of the total crush. This is the second successive harvest with a reduction in red tonnage crushed. By contrast, the resurgence in whites continued with a 4% increase to 0.88 milllion tonnes, 46% of the total crush.

In most regions, the harvest commenced one to two weeks early due to the weather
conditions leading up to the harvest. This resulted in some logistical challenges for wineries. The simultaneous ripening of some varieties caused significant scheduling difficulties and wine storage is at or near full capacity.

Tonnage outcomes varied between the major regional classifications. In the warm inland regions, tonnages were up around 20% in the Riverina but down 5% in the Murray Valley and down 10% in the Riverland. The growth in the Riverina was on the back of winery capacity expansions in the area. The major growth was in chardonnay, semillon and shiraz. The reductions in the Murray Valley and the Riverland were due to low prices and tonnage caps.

Many of the cooler climate regions also experienced lower tonnages for similar reasons. For example, Langhorne Creek was down 5%, McLaren Vale down 8%, and Mudgee down 10%.

The major seasonal influences on the 2006 crop have been above average rainfall early in the season and above average temperatures throughout most of the season.
Above average winter rains served to replenish water tables and were a welcome relief after the relatively dry winters of the past few years. Soil profiles were filled to capacity providing the foundation for an excellent season.

Good spring rains and above average temperatures recorded in most regions encouraged excellent shoot growth and early bud burst. The conditions were ideal for healthy canopy development, enabling fruit to ripen effectively. Rainfall during spring was well distributed across a number of episodes meaning they most-often served to freshen the crop and improve quality.

Above average temperatures and relatively dry conditions were experienced in December and January. This accelerated the finish to the season. There were hostile conditions in January with periods of extreme heat (40° C+) across most of Australia, slowing down the ripening process and resulting is some incidences of sunburn and vine stress. Fortunately, the heatwaves subsided and most regions experienced cool overnight temperatures and warm days, ideal for colour and flavour development. The drier conditions during summer ensured a good start to vintage for the harvest of white varieties.

There are several factors that point to good prospects for quality. The weather conditions during the season have been most favourable for quality winegrape production. Favourable spring rains set the season up well although their lateness increased powdery and downy mildew pressure in November/December. Nevertheless, well-timed vineyard management minimised the impact and the season so far has been relatively disease free. A dry summer and lead up to the harvest also assisted in low disease incidence. The extreme heat in January slowed the ripening process but good canopy protection minimised the impact on quality. Smaller berry sizes are expected to enhance flavour intensity. Very few growers experienced problems achieving (or exceeding) baumé. Stand-out varieties include chardonnay, sauvignon blanc, cabernet sauvignon, and shiraz. Overall, a “good-to-excellent” quality harvest is anticipated.

The 2006 crush is expected to ease the supply pressures existing in the Australian wine sector. While red wine has been the major contributor to oversupply for the past few seasons there is evidence of industry attempting to manage this situation. Greater production of whites will redress recent shortages of this category and will provide sales growth opportunities that have been potentially under supplied in recent years with whites driving export growth. The quality of the harvest will also further enhance Australia’s reputation for producing premium quality wines.

Australian Wine and Brandy Corpoation