The 2024 Murray Darling-Swan Hill grape crush was up a whopping 38 per cent on the previous year at 282,338 tonnes.
And while Murray Valley Winegrowers chief executive Paul Derrico said that total was still 14 per cent below the local industry’s five-year average of 326,903 tonnes, he said the crush had still delivered a massive financial injection across the region.
Mr Derrico said the value of the crush from Murray Darling and Swan Hill increased by $27.5 million (33 per cent) from $83.5 million in 2023 to $110 million in 2024 as a result of the increased tonnage partly offset by the decrease in average value.
The value of purchased grapes increased by 17 per cent (just under $10 million) from $55.5 million to $65.1 million.
He also said this was been the second lowest crush for more than a decade, with grower tonnages (purchased fruit) at 165,000 tonnes, an increase of 22 per cent on 2023’s 135,000 tonnes, while winery-grown production was 118,000 tonnes – a large increase on the 70kt produced last year.
“The 2023 crush was the lowest in 23 years, not just here but nationally, on the back of weather and widespread disease challenges,” Mr Derrico said.
“Unfortunately somewhere between 15,000 and 20,000 tonnes of red grapes were not harvested because of market conditions and some growers have mothballed red grape vines (by severe pruning to stop fruit growth or chemical sprays to make berries drop early).
“No grower likes to do that, they all want to grow the best product they can and then get paid for it, and although China has given us some hope we will know more shortly when the June quarter export trade figures come out.
“Growers also realise we all face some tough challenges in the year ahead. Particularly in getting a clear indication of what the market will be in 2025 – especially for the red grape growers. Mostly we believe prices for whites will hold firm, and maybe even go up a bit.”
Mr Derrico said for growers in the Murray Valley this year, weather conditions were the least of their concerns.
“While still challenging, growing conditions in the region were nowhere near as difficult as the previous vintage as the season started out fairly dry, providing ideal conditions for pruning and preparing the vineyards for the vintage,” he said.
“Budburst did come earlier than the previous few years, and spring brought clear weather without too much rain, alleviating the downy mildew concerns growers had in hangover from the 2023 season.
“Soil temperatures were quick to pick up, which also meant growers staved off the risk of chlorosis brought on by nutrient deficiencies.”
Mr Derrico said probably the most challenging and abnormal part of the season was around Christmas, which is when the region experienced significant concentrated rainfall.
He says between Christmas and Australia Day more than 200mm fell, which is unusual for the region, with January generally being its driest month.
However, the brief spell of rain was enough to lift irrigation pressure in January, resulting in lower water use for the entire season.
Murray Darling and Swan Hill together accounted for 22 per cent of the national reported crush; 28 per cent of the white crush and 16 per cent of the red crush.
Victoria accounted for 58 per cent of the Murray Darling-Swan Hill crush, up from 53 per cent in 2023.
Purchased grapes accounted for 70 per cent of the crush from Victorian MD-SH in 2024 compared with 68 per cent in 2023. In NSW, purchased grapes accounted for 42 per cent of the MD-SH crush, down from 63 per cent in 2023.
The crush of winery-owned fruit in MD-SH increased by 67 per cent compared with the very low 2023 crush, while the crush of grapes purchased from independent growers increased by 22 per cent. The biggest increase came from winery-grown tonnes from the NSW side of the Murray Darling and Swan Hill GIs (up 93 per cent).
The crush of red grapes was up by 15 per cent overall, while the white crush increased by 55 per cent, causing the white share of the total crush to increase from 57 per cent in 2023 to 64 per cent.
This is significantly higher than the average share of whites nationally, which was 51 per cent in 2024. The fact that whites increased by much more than reds suggests that the composition of the crush was driven by economic and market forces more than seasonal factors.
Chardonnay was the largest variety, with a crush of 82,306 tonnes, an increase of 63 per cent year-on-year. Of the top 10 varieties, Shiraz was the only one that declined (down 9 per cent), while the largest increases were for Merlot (up 80 per cent), Pinot Gris/Grigio (up 79 per cent) and Colombard (up 64 per cent). The reported crush of Sauvignon Blanc was only 447 tonnes less than third-placed Cabernet Sauvignon, with Pinot Gris/Grigio just another 786 tonnes further behind.
The overall average purchase value for the Murray Darling and Swan Hill regions decreased by 4 per cent from $412 per tonne to $395 per tonne. Both reds (down 5 per cent) and whites (down 6 per cent) decreased by similar percentages, but the average value for whites was $55 per tonne higher than for reds.
Of the top 10 varieties, the smallest declines in average value were for Muscat Gordo Blanco and Pinot Gris/Grigio (both down less than 1 per cent), while Colombard increased by 3 per cent.
REDS
Most prices softened further in 2024, the average price of Cabernet Sauvignon reduced by 13 per cent to $296/tonne; Shiraz averaged $308/t, down by 9 per cent and Merlot was $317/t, a decline of 6 per cent. Demand for Pinot Noir remained strong in 2024, reflected in its pricing of $675/t, a reduction of 6 per cent.
Interestingly, the average price for mainstream red is significantly higher than many would have anticipated, with many growers advising their grapes were sold at sub-$200/t.
Some growers are still benefitting from longer-term contracts with minimum prices that were written during better times.
WHITES
Most prices generally tended to reduce or were relatively static; Chardonnay averaged $369/t, a reduction of 4 per cent on 2023 prices; Gordo was $333/t (down 1 per cent); Prosecco was solid at $648/t (albeit with a reduction of 2 per cent), Sauvignon Blanc dropped to $544/t (down 5 per cent), Semillon recorded $311/t (down 6 per cent) & Pinot Gris/Grigio held firm at $531/t ($532 in V23).
The overall average for Whites was $412/t ($439 in V23), while Reds averaged $357/t compared to $374/t in the previous year.
Across all varieties, the average price reduced by 4 percent to $395/tonne (($412/t in V23); collectively independent growers were paid approximately $65.1 million for the 165,000 tonnes they yielded ($55.5M on 135kt in 2023).
Chardonnay preserved its top position on the production list with 82,000 tonnes (51kt in V23), followed by Shiraz with 41,000t (46kt), then Cabernet Sauvignon 25,000t (20kt), Sauvignon Blanc 24,000t (18kt), Pinot Gris 24,000t (13kt), Gordo 17,000t (10kt) & Merlot 15,000t (8kt), Colombard 12,000t (7kt), Semillon was fixed at 7000t, whilst Pinot Noir slipped back into the top 10 with approximately 7,000t (4kt in 2023) – Prosecco production was 6000t compared to 4kt in the year prior.
Notably, winery-grown fruit accounted for 42 per cent of the 2024 crush, with winery volumes of Shiraz, Merlot & Pinot Gris/Grigio all exceeding purchased tonnes from independent growers.
The national winegrape crush was estimated at 1.43 million tonnes in 2024 (1.32Mt in 2023), an increase of 9 per cent on the 23-year-low crush in 2023, and 18 percent below the 10-year average of 1.73 million tonnes.
See the following link for further national crush details: https://www.wineaustralia.com/market-insights/national-vintage-report
