Western Australian wineries have begun searching for locally grown grapes for next year’s harvest much earlier than usual in a bid to lock in supply amid predictions the national grape harvest will yet again be smaller than usual.
Western Australian wineries have begun searching for locally grown grapes for next year’s harvest much earlier than usual in a bid to lock in supply amid predictions the national grape harvest will yet again be smaller than usual.
Drought, frost and smoke taint from fires cut the nation’s 2007 grape harvest by about 30 per cent and sent big east coast players, including Foster’s Group Ltd, shopping for fruit in WA.
It came as welcome news for local growers, which several years ago were confronted with wineries unwilling to renew grape contracts as a glut of grapes following some very big vintages depressed prices and left many wineries clawing back production.
Faber Vineyards owner and contract winemaker John Griffiths recently started looking to source fruit for his winery and his clients.
Mr Griffiths said he had begun the process about six weeks ahead of schedule, but despite his early entry he was finding it difficult to source grapes, particularly sauvignon blanc and semillon.
“Last year it was difficult but this year it has gone ballistic,” he said. “I’m not surprised because there is a massive shortage of grapes in some varieties this year and everyone is expecting a smaller vintage in 2008.”
Mr Griffiths said most wineries waited until their vines had flowered, which gave them an indication of what their crop was likely to yield so they could better determine how many grapes they may need to supplement their production.
“But I know I have to sure up supply before then because everyone else is,” Mr Griffiths said.
Vasse Felix group winemaker Virginia Willcock said the Margaret River producer had recently signed a long-term grape growing contract as it moved to sure up long term supplies.
It’s one of the first signs that the industry is departing from its vintage-to-vintage buying pattern that emerged during the grape glut.
Ms Willcock said wineries were locking in contracts earlier this year and there had been a lot less phone calls from growers looking to sell fruit.
Grower Neil Delroy said that when the industry had been “booming” about six or seven years ago, it was typical for wineries to start locking in contracts well in advance of the harvest.
Mr Delroy, who manages 700 hectares of fruit in WA, said while there were shortages of sauvignon blanc and quality cabernet there were still ample supplies of varieties such as shiraz and chardonnay.
On the back of heightened demand, prices for semillon and sauvignon blanc have increased from about $1,500 per tone four years ago to between $1,600 and $2,200 a tonne.
Meanwhile, prices for red varieties have remained fairly flat.
Despite signs of profitability starting to emerge in the industry, there is also a level of uneasiness.
Many winemakers and grape growers point out that the current demand for grapes has been created by unusual weather conditions on the eastern seaboard, and they fear that if conditions return to normal the industry will again be hit by larger vintages, which would likely push the industry back a period of oversupply.
