Family growers hurt by market forces

AS the local industry enters another vintage, Murray Valley Winegrowers says it is also a time to reflect on the many challenges that have confronted wine grape growers through the 2022-23 growing season.

In the latest issue of its News & Views, MVW said growers “have certainly never seen a year like this before”, with many rainfall events and occasional flood incidents leading to widespread disease outbreaks – predominantly downy mildew, but with sporadic powdery mildew occurrences.

It was hoped the weather held and growers could harvest their fruit without any further interruptions and crop losses.

“Fruit must be maintained in the best possible condition to take advantage of any sales opportunities – fruit that is sound, clean and ripe should attract attention given there are expected to be major crop losses throughout the Murray Valley and the other key inland regions of the Riverland and Riverina,” the report said.

“Murray Valley Winegrowers is predicting a drop in production for the Murray Valley region for the upcoming harvest of around 30 per cent, equating to a decline of approximately 100,000 tonnes on the five-year average – this includes some of the larger corporate vineyards and the MVW member base.

“This is devastating for the growers affected and our thoughts are with you.”

Opening prices for the main whites were lower than most would have anticipated, but recently there had been some encouraging movements that had a positive effect on the average prices for the region.

However, red grapes prices declined again this year and were well below the cost of production.

The effect of crop losses and mothballing may bring supply/demand into balance sooner than many would have predicted but this was little comfort for the individual growers who have been so adversely affected.

“Wineries have reported that pricing has largely been influenced by ongoing inventory challenges, the result of the international market issues that have been well documented, and an escalation in production costs which they have been unable to absorb,” the report said.

“Sadly, the family grower is at the back end of the supply chain and suffers the consequences of market instabilities beyond their control.

“MVW has been in dialogue with our elected representatives (at both state and federal levels) and the national peak body, Australian Grape & Wine Inc, to look at what forms of assistance might be available to help wine grape growers through this torturous period.

“This year’s ordeals would surely meet the description of ‘exceptional circumstances’ and some government relief would be welcome.

“Let’s hope the bureaucrats in control of the country’s finances have some understanding and compassion.”

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