Oz vintage down

Total Australian winegrape production is forecast to fall by 13% to 1.6 million tonnes in 2008–09, as a result of ongoing shortages of water for irrigation and high temperatures in early 2009, according to a new report by the Australian Bureau of Agricultural and Resource Economics (ABARE).

Shiraz is expected to remain the highest-volume winegrape variety followed by Chardonnay and then Cabernet Sauvignon. These three varieties are forecast to account for around 60% of total Australian winegrape production in 2008–09.

Despite the fall in grape supply, wine stocks to sales ratios are expected to increase in the next few years as production outstrips sales growth. Economic conditions and strong competition in key export markets are the main factors behind the expected slowdown in wine sales in the coming years.