Australian farmers rip out millions of vines amid wine glut

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Australian farmers rip out millions of vines amid wine ... - 3/10/2024 5:37:12 AM

Chip Merlot

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Australian farmers rip out millions of vines amid wine glut
By Peter Hobson
March 9, 2024

GRIFFITH, Australia, March 9 (Reuters) - Millions of vines are being destroyed in Australia and tens of millions more must be pulled up to rein in overproduction that has crushed grape prices and threatens the livelihoods of growers and wine makers.

Falling consumption of wine worldwide has hit Australia particularly hard as demand shrinks fastest for the cheaper reds that are its biggest product, and in China, the market it has relied on for growth until recent years.

The world's fifth largest exporter of wine had more than two billion litres, or about two years' worth of production, in storage in mid-2023, the most recent figures show, and some is spoiling as owners rush to dispose of it at any price.

"There's only so long we can go on growing a crop and losing money on it," said fourth-generation grower James Cremasco, as he watched clanking yellow excavators strip out rows of vines his grandfather planted near the southeastern town of Griffith.

The rest of the (long) story: https://www.reuters.com/world/asia-pacific/australian-farmers-rip-out-millions-vines-amid-wine-glut-2024-03-09/

Post #: 1

RE: Australian farmers rip out millions of vines amid w... - 3/10/2024 7:12:28 AM

DoubleD1969

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I'm not surprised. That's a lot of crap, bulk wines. I would like to see Constellation and Diageo in California do the same.

Don't worry folks -- Grange, Macdonald and Scarecrow will be just fine.

(in reply to Chip Merlot)

Post #: 2

RE: Australian farmers rip out millions of vines amid w... - 3/11/2024 5:58:18 PM

skifree

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I think there was a post about this happening in Bordeaux last year as well, here is a link to a CNBC article on the topic: Ripping up vines in Bordeaux

I found this summary article from Singapore that popped up in Bing as well (it does require a click-through of an ad). The world has too much wine

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So much wine, so little time

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RE: Australian farmers rip out millions of vines amid w... - 3/11/2024 6:43:41 PM

khmark7

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"consumers are increasingly opting for beer and lighter wines."

Seems like people want something that goes better with food?

Meanwhile in the USA.....16% alcohol Cabernet and 15% Pinot Noir....anything less is unripe green vegetal crap!!!! according to the wine critics.

We did this to ourselves.

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Post #: 4

RE: Australian farmers rip out millions of vines amid w... - 3/12/2024 11:44:47 AM

xyc

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China reducing tariffs on Aussie wine, some at 220%! Nice market to have.

(in reply to khmark7)

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RE: Australian farmers rip out millions of vines amid w... - 3/12/2024 10:37:37 PM

BenG

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I've been following developments in EVs and as China has just now become a market leader (especially BYD), their employment practices have come under more scrutiny. Europe, to stop their EV industry collapsing, has proposed a tariff on Chinese EV sales, (US already has a tariff) due to unfair business practices and government subsidies.

Probably not a good look to have a tariff on wine from a Western country if they hope to not have a tariff on EV sales to the west.

(in reply to xyc)

Post #: 6

RE: Australian farmers rip out millions of vines amid w... - 3/12/2024 10:57:36 PM

CranBurgundy

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quote:

ORIGINAL: khmark7

We did this to ourselves.

As is often the case in many matters of "taste". A handful of critics / influencers set the standard and sheeple follow them as if those few are the Pied Piper.

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(in reply to khmark7)

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RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 12:34:28 AM

nwinther

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Always sad to see this. I realize that it's mostly high-yielding vines on semi-suited lands that get the cut, so there's not much loss.
I'd wish it would instead lead to winemakers focus on quality rather than quantity so we would get 20% less wine but 15% better wine, either through planting low-yielding varieties in low-yielding areas and/or through harsher sorting throughout.

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RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 3:55:03 AM

khmark7

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quote:

ORIGINAL: nwinther

Always sad to see this. I realize that it's mostly high-yielding vines on semi-suited lands that get the cut, so there's not much loss.
I'd wish it would instead lead to winemakers focus on quality rather than quantity so we would get 20% less wine but 15% better wine, either through planting low-yielding varieties in low-yielding areas and/or through harsher sorting throughout.

In the case of Australia i don't think the higher quality wines are selling all that much better, and going through the extra work and cost to cut production doesn't always equal better returns, at least not immediately. I think the higher alcohol/bigger wine movement may have lost a number of wine drinkers who preferred the easy drinking lighter wines that pair well with food, and for the moment they are either priced out of the market or not finding wines to their liking. The pandemic may have exacerbated this because so many more people were at home eating dinner.

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(in reply to nwinther)

Post #: 9

RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 8:07:20 AM

DoubleD1969

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Recent articles in the New York Times debunking the health benefits of red wine may also be generating less demand.

(in reply to khmark7)

Post #: 10

RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 8:28:28 AM

Wine Grove

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quote:

ORIGINAL: khmark7

"consumers are increasingly opting for beer and lighter wines."

Seems like people want something that goes better with food?

Meanwhile in the USA.....16% alcohol Cabernet and 15% Pinot Noir....anything less is unripe green vegetal crap!!!! according to the wine critics.

We did this to ourselves.

Meanwhile, Paso Robles is doubling down on 16-17% syrahs.... might as well call it red cognac!

(in reply to khmark7)

Post #: 11

RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 12:20:26 PM

wine247365

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quote:

ORIGINAL: Wine Grove

quote:

ORIGINAL: khmark7

"consumers are increasingly opting for beer and lighter wines."

Seems like people want something that goes better with food?

Meanwhile in the USA.....16% alcohol Cabernet and 15% Pinot Noir....anything less is unripe green vegetal crap!!!! according to the wine critics.

We did this to ourselves.

Meanwhile, Paso Robles is doubling down on 16-17% syrahs.... might as well call it red cognac!

mmm...16-17% is quite an exaggeration. Maybe that's more of an eastside thing, but it's not on the westside. Bigger picture though, winemaker's can't control the temperatures so wines with higher alcohols (around the world) are beyond a winemaker's control. All they can control is how they manage it, for those that want to try and manage it.

< Message edited by wine247365 -- 3/13/2024 2:02:49 PM >

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Post #: 12

RE: Australian farmers rip out millions of vines amid w... - 3/13/2024 6:12:18 PM

khmark7

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From: Chicago suburbs
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quote:

ORIGINAL: wine247365

quote:

ORIGINAL: Wine Grove

quote:

ORIGINAL: khmark7

"consumers are increasingly opting for beer and lighter wines."

Seems like people want something that goes better with food?

Meanwhile in the USA.....16% alcohol Cabernet and 15% Pinot Noir....anything less is unripe green vegetal crap!!!! according to the wine critics.

We did this to ourselves.

Meanwhile, Paso Robles is doubling down on 16-17% syrahs.... might as well call it red cognac!

mmm...16-17% is quite an exaggeration. Maybe that's more of an eastside thing, but it's not on the westside. Bigger picture though, winemaker's can't control the temperatures so wines with higher alcohols (around the world) are beyond a winemaker's control. All they can control is how they manage it, for those that want to try and manage it.

Temperature isn't the problem, it's how you manage the vines and the crop load. Of course none of this is easy, but you can't blame this entirely on global warming.

I still have plenty of beautiful old school Bordeaux from 2003 that wasn't destroyed by the heat. There was a time before everything was managed by M. Rolland.

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(in reply to wine247365)

Post #: 13

RE: Australian farmers rip out millions of vines amid w... - 3/14/2024 2:25:13 AM

nwinther

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Joined: 7/28/2006
From: Denmark
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quote:

ORIGINAL: khmark7

quote:

ORIGINAL: nwinther

Always sad to see this. I realize that it's mostly high-yielding vines on semi-suited lands that get the cut, so there's not much loss.
I'd wish it would instead lead to winemakers focus on quality rather than quantity so we would get 20% less wine but 15% better wine, either through planting low-yielding varieties in low-yielding areas and/or through harsher sorting throughout.

In the case of Australia i don't think the higher quality wines are selling all that much better, and going through the extra work and cost to cut production doesn't always equal better returns, at least not immediately. I think the higher alcohol/bigger wine movement may have lost a number of wine drinkers who preferred the easy drinking lighter wines that pair well with food, and for the moment they are either priced out of the market or not finding wines to their liking. The pandemic may have exacerbated this because so many more people were at home eating dinner.

I think you are right. I'm just being a romantic where taking pride in your work/product matter (in my dreams). As Peter Vinding Diers said about one of his neighbours (a producer in the millions-of-liters range) "They're not making wine. They're making money".

It's interesting that people are moving away from BOTH bombers AND (lighter styles) Bordeaux'.

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Post #: 14

RE: Australian farmers rip out millions of vines amid w... - 3/14/2024 3:16:33 PM

bularry

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Joined: 4/4/2023
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I don't think the issue is too much wine, or too many vineyards. The issue is too much plonk that feeds the SKUs at our large grocery distributors. Wine of character and substance that is available in the market has become too expensive to develop a strong culture of wine consumption in the younger demographics. There is wine of quality made at lower price points, but it can't find a place the US market due to our distributor system. IF we could make 'good' value priced wine accessible, I think people would drink it instead of $6/bottle beer or cocktails. Just my opinion as the father of 3 kids in their 20's and seeing how they and their friends drink.

(in reply to nwinther)

Post #: 15