My Valentines: Australian wine industry outlook

I know it is Valentines day, but I could not care less. Today I would like to draw your attention to a topic right at my heart, the Australian wine industry.

The questions which occupieds me most is what can we expect during the next few years after the “wine lake burst its banks”, overproduction made producer prices drop and many businesses collapsed in the wake of overplanting and overproduction.

Is the boom and bust of the primary industry in grape and wine production coming to an end any time soon?

According to a recent study by the International Wine and Spirit Research (IWSR) commissioned by Vinexpo, this will not be the case. The Australian wine industry is contracting further (by about 15%) whereas global wine production will,only shrink by less than 3%.

But in the long run (longer than 5 years from now) prospects are much better. And this is what I am interested in. Sure there will be less volume, but better quality and better prices. The adjustment will not make everybody happy though.

But I am confident that I can continue my boutique vineyard once the restructuring is completed. One of my daughters is also keen to let this opportunity not slip away. This should make me optimistic too.

Cheers to you all, and happy Valentines day.

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