Wine exports to Australia could be on way up

Press, 3 December 1987, Page 28

Wine exports to Australia could be on way up

By

ROBERT LOWE

of NZPA

Sydney Bad weather and a boom in Australian wine exports has given New Zealand winemakers a chance to increase sales in Australia, according to New Zealand’s ConsulGeneral in Adelaide, Mr Warwick Hawker. Australian Wine and Brandy Corporation figures released last month showed that Australian wine exports rose 98 per cent and increased in value by 126 per cent in the year to August.

Mr Hawker said the boom could create a gap in the domestic market that New Zealand could fill.

•‘There is a tremendous opportunity for New Zealand wines, both red and white, but they have to be quality wines,” he said.

“New Zealand has developed a name for Sauvignon blanc. “With changing tastes, light reds are also becoming popular and that is what New Zealand- produces as well.”

The gap in domestic supply could be made greater by bad weather in October in parts of South Australia, the state which produces about 55 per cent of the country’s wine. On October 12, the Coonawarra region 400 km south-east of Adelaide was hit by frost, and damage to premium-quality wine grapes was reported to have been extensive. “It is not what we wanted in a year when premium grapes are in short supply,” one industry official said at the time.

Three days later, a devastating hail storm

moved through parts of the Barossa Valley, north of Adelaide.

In 20 minutes, up to 20 ml of precipitation occurred, mostly in hailstones up to Bcm in diameter.

Crop losses of up to 75 per cent were estimated in grapevines.

The combined effects of the jump in exports and bad weather has led some winemakers to predict a 40 per cent hike in prices next year. The manager of the Wine and Brandy Producers’ Association of South Australia, Mr Bernard Stephens, said it was possible that New Zealand’s chances of exporting more wine across the Tasman might have increased.

However, he said the situation was one of wait-and-see. 7

“We are not absolutely sure yet what the effect of the frost and hail will be on this year’s harvest,” he said.

“Each year, something happens in one of the growing districts, and it often does not turn out to be as bad as first thought. “I think probably by the end of January we will know what the crop prospects are. “By that time, you can tell whether the bunches are going to be tight or a big straggly and how many new bunches you have on the vine. You can do a proper assessment then.” As for the frost, Mr Stephens said that the Coonawarra region accounted for only 5 per cent of the state’s wine production. He said the question of Australian exports also

had to be seen in perspective. “The other side of the coin is that while exports are booming, we are still exporting only about 5 per cent of our production,” he said.

“So, while we have had an increase of 95 per cent, it is 95 per cent on a small amount in relation to total production.”

New Zealand wine exports to Australia in the year ended June totalled 239,000 litres and were worth $1,356 million.