WHILE THE grape and wine supply chain waits for positive export figures to translate into a real business boost, initial reports of suggest the grape price per tonne is hovering between $370 and $400 throughout the inland regions (Murray Darling, Riverina and Riverland). This represents a slight jump up from last year’s average of about $320 a tonne; offering hope of a recovery to good returns for both grapegrowers and wineries. Daniel Whyntie reports.
Grapegrowers spend the vast majority of their annual expenses before vintage – in fact before the December 15 date which the Australian Wine Industry Code of Conduct sets out for price notifications. And some growers remain frustrated by a either a lack of information or the restrictive nature of their contract which has last years’ low price rolling across to 2017. There were even rumours of a ‘tractor blockade’ and grower boycotts before this year’s vintage began.
Last year the Australian Competition and Consumer Commission (ACCC) declared that contracting practices were the most significant issue affecting viticulture in a report into the sector.
“The risk sharing weighs strongly against the growers; they find it difficult to know what price they will receive and some are only paid after delivery. It’s not the equitable sharing of risk we’d like to see in good contracting practices,” said Mick Keogh, ACCC commissioner. Continue reading