The Wine Industry Drought Taskforce, the Winemakers’ Federation of Australia (WFA) and Wine Grape Growers’ Australia (WGGA) have recently announced that the 2008 harvest is likely to fall to between 800,000 tonnes and 1.3 million tonnes. The range of the estimated shortfall points to the difficulty in accurately determining an early insight into actual yields.
Yields will decrease in regions that rely heavily on water from the Murray Darling, however it should also be noted that wine grapes and grape growing conditions in Australia vary significantly from region to region. Accordingly this year’s harvest is likely to see a notable change in mix from fruit sourced from inland irrigated regions to cooler areas in Australia less affected by drought or water access issues. There is a clear priority on behalf of the Australian wine sector to maintain supply and manage price in all key markets. However it is already acknowledged that the previous years’ opportunistic bulk sales will be the first exports to come under pressure. The Australian Wine and Brandy Corporation is still expecting growth in total sales to the UK market for the next 5 years.
Australia will continue to supply a broad offering to consumers in the UK across all price points and from a diverse range of wine producing regions.
A revised forecast is expected to be announced towards the end of November.
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