AUSTRALIAN WINE IN CRISIS: 17% OF VINEYARDS CONSIDERED “ANTI-ECONOMIC” AND 75% PRODUCE A SURPLUS EACH YEAR. THE “WINE RESTRUCTURING ACTION AGENDA” CREATED TO HELP SECTOR

Australia has registered a surplus production of wine equivalent to 100 million cases and the main national organizations of the sector have now created a plan to fix this situation. The latest report that was published by the four main organizations of the Australian wine sector revealed that 17% of vineyards are “anti-economical” and that 75% of the total production per year is surplus.
The “Wine Restructuring Action Agenda” – created for all producers – notes that the amount of surplus will double within three years and confirms that the excess of supply is having a debilitating effect on Australian wine enterprises and a restructuring of the productive base is essential and inevitable. The report was written by the Winemakers’ Federation of Australia, the Australian Wine and Brandy Corporation, Wine Grape Growers Australia, and Grape and Wine Research and Development Corporation. The results are based on national and regional data. And the report will be presented to each region along with support materials for producers until a decision is made whether to restructure the company, change the mix of varietals that are grown, or exit the wine sector completely. The organizations have not released the details on the specific areas of interest for the initiative but all of the regions will be affected by this overproduction crisis.
The aid that has been proposed by the plan aims at renewing the push towards the Asian markets, especially that of China, as well as those of Great Britain, the United States, Europe and Australia itself. But it remains evident that the Australian wine industry cannot focus solely on the commercialization of its products given that the current exchange rates continue to favor countries like Chile and Argentina.
The plan does not foresee government aid for Australian winemakers but does propose State financing for those who intend to leave the wine sector entirely. Source: www.decanter.com