Poor seasonal conditions and lack of market access have contributed to a significant fall in wine exports from Western Australia for the 2005-06 vintage.
Poor seasonal conditions and lack of market access have contributed to a significant fall in wine exports from Western Australia for the 2005-06 vintage.
According to the latest Australian Wine and Brandy Corporation figures, Western Australia’s exports by volume fell by more than 31 per cent, from 17.8 million litres last year to 13.6ML.
This represented a reduction in export value of close to 20 per cent, from $80.9 million in 2005 to $65.4 million in 2006.
In contrast, Australian export volumes grew 12 per cent from 661ML to a record 738ML in 2006, representing total value of $2.8 billion.
However, the average price per litre fell to $3.80, representing the fifth consecutive financial year the average price for Australian wine exports have declined.
Proprietor of the Ashbrook Estate winery and former principal horticultural adviser to the Department of Agriculture, Tony Devitt, told WA Business News the 2006 season was a considerably unfavourable year for winegrowers in WA.
“In regards to vintage wine, there has been a significant quantity of grapes left on the vine which weren’t picked for two reasons: the unfavourable seasonal conditions and because they didn’t have the market for fruit,” Mr Devitt said.
“Particularly in the southern areas of the state around the Margaret River area, it has been a very cool season, which meant a long and late growing season.”
However, it was not all bad news out there. Aspiring winery Churchview Estate said that the export market had been strong.
Churchview director sales and marketing Spike Fokkema said both domestic and export demand had grown exponentially and the winery planned to have 70 hectares under vine by next vintage, belying the glut by continuing to plant.
Long-established producers have also indicated that the biggest issue this year was the lack of quality grapes, not the much talked about over supply.
Mr Devitt said wine marketing was a big issue for the WA wine industry which has grown rapidly.
“Even though you have the surpluses of wine there is still pressure to make the sales, resulting in a reduction in price,” he said.
“From the industry’s perspective this is a real problem, because if one offers the incentive and offers discounts on their wines then this will impact across the whole market and others, but not all, will follow suit to keep up.”
Mr Devitt told WA Business News WA producers needed to focus on selling a quality product.
“Cleanskins are not the way to maximise this industry,” he said.
“In WA, we have the environment to produce a very high-quality wine and anything less than this is suboptimal.
“If the industry is seeking support, then we want to support them at the marketing end rather than the production end of the cycle.”
Mr Devitt highlighted last month’s ‘Taste of Western Australia’ wine tasting event held in San Francisco, US, as an example of positive support required for the industry through export promotion.
Attracting 245 attendees from San Francisco and surrounding areas, the event hosted 25 WA wineries with more than 150 wines available for tasting.
The event was organised on behalf of the Wine Industry Association of Western Australia US Marketing program members by American wine consultant, Steve Burns.
The 2007 ‘Taste of Western Australia’ will be held on the eastern seaboard of the US, depending on funds available.
Earlier in the year, US journalists took part in the first Way Out West (WOW) five-day tour with the sales drive travelling throughout the Ferguson Valley, Mt Barker, Denmark, Pemberton, Margaret River and Geographe wine regions.
Figures from the AWBC export statistics for 2004-05 show the UK (with export value of $40.2 million), the US ($11.3 million), Canada ($4.4 million) and Ireland ($2.6 million) were the major destinations for WA wines.
