By BRAD PERRY
WINEGRAPE growers are selling uncontracted grapes that were originally predicted to not find a home this vintage, as wineries seek extra fruit to meet yield demands.
Over the past two harvests, growers were forced to leave grapes they were unable to sell on the ground or on vines but with the exiting of many growers, this year’s vintage will see little wasted.
Kingston Estate Wines managing director Bill Moularadellis, in his 25th vintage, said this year the winery is taking up most of the fruit being offered.
“We certainly aren’t suggesting that any of our growers leave fruit on the vines,” he said.
“As they (wineries) have been picking individual varieties, if they have been coming up short, then that means they can actually buy a bit extra to make up that shortfall but still the overall tonnage they are taking in won’t have gone up.
“It is just to make up what they were expecting.
“The demand is pretty flat and remains the same, there is just less supply to meet that demand, so it is apparently not in surplus and that is a good thing.”
Mr Moularadellis said this year’s vintage will create some “breathing space” for the local wine sector.
“I think the lower crops are a positive for the industry (because) it gives us some breathing space to clear some overhang stocks and be able to command some prices from our customers that relate to what it actually costs us to produce,” he said.
Looking into the future of the wine industry, Mr Moularadellis is confident things will turn around.
“I think it is an absolute tragedy that growers are leaving their properties,” he said.
“I think the over reaction is regrettable and I’m confident that within a year or two grape prices will be above the loss making area that they are now.
“I am encouraging any grower that can hang in there to do so because to give away a lifetime’s work to leave their vineyard because of a couple of years (of low returns) is an absolute tragedy.
“I am absolutely confident the industry will turn around sooner rather than later and that returns will increase back to viable levels that reward growers for their endeavours.”
Riverland wine industry development officer Tim Smythe said wineries are accepting certain quality varieties of grapes and price returns are looking positive.
“What I am hearing is that there is price movement and that is encouraging,” he said.
With wineries looking to accept extra fruit, Mr Smythe said it is a positive in what has been a tough vintage for many growers.
“For people sitting back in November and thinking they won’t have the opportunity to sell a portion of their grapes...at least they will get a return this season,” he said.
“I’m absolutely certain that prices will increase, I think it is very, very difficult to sustain prices at the current levels and hopefully with the lower vintage this year, that will enable lower stocks, which will enable us to attract more from our customers going forward,” Mr Moularadellis added.
While Mr Smythe said there are positives coming out of the current vintage, he said this year’s tonnage has dropped significantly from last year’s crush and the industry will continue to face many challenges going forward.