A leading expert in wine economics has suggested growers of non-premium red varieties should consider uprooting their vines and leaving the industry.
Professor Kym Anderson will deliver an address at this week’s Australasian Agricultural and Resource Economics Society Conference (11-13 February).
He says a global decline in alcohol consumption, tariff shocks and government subsidies in competing countries have left many local winemakers struggling to turn a profit.
As part of the AARES conference session focused on the wine industry, a newly updated global winegrapes database will be launched.
It reveals how vignerons in different regions are changing their total vineyard areas and their varietal mixes as regional climates, macroeconomic conditions and consumer preferences are altering – and how Australia is lagging.
Professor Anderson said research shows that Australian wine producers have continued to become less diversified in terms of the varieties they produce, with a strong focus still on red wines despite excess red stocks accumulating globally.
“While wine consumers, especially in Australia, have never had it so good with an ever-widening range of wines on offer at record low prices, many vignerons are struggling to make a profit.” Professor Anderson said.
Image: Grape Merlot Wine Cluster – Free photo on Pixabay
