From bad to worse for the wine industry
December 17, 2009 |10:22 | Wine Information By : Team X
The wine industry has hit a new low, as grape prices plummet. Grape suppliers to major companies Constellation, Fosters and Orlando Wines have been told they face a cut of about 30 per cent to contracts for next vintage.
The change affects more than 1000 growers in inland regions, accounting for about-two thirds of Australia's total production. Mark McKenzie from Wine Grape Growers Australia says prices are now so low, that growers will be forced out of the industry.
"To put it in context, we had a 30 to 50 per cent fall in grape prices for major varieties and I'm talking there Chardonnay for white, Shiraz, Merlot and Cabernet in reds, last year," he says. "We're now facing a further 30 per cent fall the 2010 vintage so the real position for growers now is becoming quite desperate."
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