Wine Grapes
Output
3
%
yoy
$181m est
NSW crush down
9 % yoyNSW wine exports grew by
2 % yoy
Hot dry temperatures contributed to quality berries
Total crush was down this year as hot, dry temperatures reduced yield, but also contributed to quality berries with good flavour. Wine exports grew marginally, up 2% year-on-year. Strong growth in the Chinese and UK markets was partially offset by falls in the US market driven by changing consumer preferences.
Hot topic for local vignerons
NSW DPI, Wine Australia and Riverina Wine Grapes Marketing Board are focussing on vineyard management in heatwaves in a project to better understand vine stress during hot conditions. They are exploring the potential for new technology (sap flow meters and dendrometers), coupled with soil moisture information, canopy temperature and humidity sensors, to monitor vine stress and inform irrigation decisions which could help better manage grapevines in the heat.
Learn more
Production
The area planted to wine grapes of bearing age was 30,111 hectares in 2016-1711.
The total NSW crush was down 9% year-on-year to 317, 754 tonnes off the back of last year’s record harvest101, w. Yield was down, as grape size and average bunch weights declined due to record summer temperatures and very dry conditions across much of the state. Grape quality was generally good however, with the dry conditions translating into smaller berries with plenty of flavour30.
Of the total grape crush, 29% was purchased by wineries from independent grape growers with the rest suppling wineries through their own vineyards101.
The Riverina remained the largest wine production area in NSW and in 2017–18 accounted for more than 89% of the state’s total wine grape crush. The region is best known as a producer of bulk wines.
CRUSH BY VARIETY
(% of total quantity)
White 56.7%
Red 43.3%
CRUSH BY VARIETY
(% of total grape value)
White 49.6%
Red 50.4%
Price
The weighted average price paid for wine grapes in NSW was $440 per tonne. The influence of the Riverina region on this weighted average price is incredibly significant. The lower price is consistent with the large share of production coming from the Riverina region, where the average purchase price was $399 per tonne101.
NSW WINE GRAPE PRICES AND CRUSH VOLUME
- NSW weighted avg. price
- Avg price ($/tonnes)
- Crushed tonnes 2018
| Region | Crushed Tonnes 2018 | Average Price ($/tonne) | NSW Weighted Average Price |
|---|---|---|---|
| Southern NSW zone other | 124.81 | 255 | 440 |
| Riverina | 283700.27 | 399 | 440 |
| Cowra | 4246.14 | 477 | 440 |
| Big Rivers zone other | 7288.92 | 505 | 440 |
| Central Ranges zone other | 3353.33 | 510 | 440 |
| Perricoota | 317.32 | 568 | 440 |
| Gundagai | 5627.20 | 710 | 440 |
| Mudgee | 1909.18 | 755 | 440 |
| Hilltops | 2071.93 | 905 | 440 |
| Northern Rivers zone other | 10.00 | 1,000 | 440 |
| Orange | 3436.22 | 1,051 | 440 |
| Hunter Valley zone other | 420.52 | 1,283 | 440 |
| Hunter | 4230.67 | 1,417 | 440 |
| Tumbarumba | 753.21 | 1,679 | 440 |
| Canberra District | 199.00 | 1,974 | 440 |
| New England Australia | 10.78 | 2,151 | 440 |
Exports
The total value of NSW wine exports grew by 2% year-on-year to $520 million54. Exports to the UK were the main driver of growth, increasing by 68% year-on-year to over $86 million.
Winemakers have also continued to expand their penetration of the Chinese market, which grew in value by 14% year-on-year to $66 million54. This growth momentum will be boosted further in the coming year when the China–Australia Free Trade Agreement sees the complete eradication of import tariffs on Australian wines.
Exports to the US decreased in both value (down 8%) and volume (down 2.1%) year-on-year54. American consumers are transitioning from commercial wines to more premium wines. The majority of our wine exports to the US have been traditionally priced below $5AUD per bottle retail, but with a growing preference for a more premium product, Australian exports will need to respond to this demand102.
EXPORT VALUE GROWTH BY COUNTRY
| Country | Export Value | Growth |
|---|---|---|
| 2016-17 | $507,656,817 | |
| United Kingdom | $507,656,817 | $34,749,740 |
| China | $542,406,557 | $7,990,640 |
| Canada | $550,397,197 | $4,783,084 |
| Belgium | $555,180,281 | $2,300,140 |
| Belgium | $555,180,281 | $2,300,140 |
| New Zealand | $557,480,421 | $2,207,669 |
| Germany | $559,688,090 | $1,096,141 |
| Hong Kong | $560,784,231 | $915,013 |
| United States | $543,086,710 | -$18,612,534 |
| Japan | $542,051,058 | -$1,035,652 |
| Netherlands | $542,034,302 | -$16,756 |
| Rest of world | $519,664,670 | -$22,386,388 |
| 2017-18 | $519,647,914 |
