Australia

“It’s grim Down Under” sums things up both in the vineyards and on the export market. For the third year in a row La Niña maintained its grip on weather systems in the Southern Hemisphere. It was cool and there was persistent heavy rain during the winter and spring. Flooding was widespread. The high humidity triggered disastrous outbreaks of downy mildew. The resulting harvest was late and very small. The total national crush was 1.32 million tonnes, down 24% on 2022 and down 26% against the ten year average. Despite these shortfalls and spiralling production costs, the average price per tonne for grapes only increased by 2%. Overall quality will be ordinary. As if these production challenges were not enough, the export market is looking pretty sick as well: volume was down 4% and value down 11% in the year to 30th September 2023. There seems to be an unhealthy equilibrium at the moment between reduced production and disappointing sales. Of course this unprofitable stalemate is unsustainable and a contraction of the industry seems inevitable.