HALF A DECADE BEFORE AUSTRALIAN GLUT SUBSIDES

At least 60,000 tons of grapes – equivalent to 55 million bottles – have been left on the vine in Australia as a result of the wine glut, along with an almost year’s supply of wine still in vats from the prior year. The Australian Wine and Brandy Corporation estimates the 2006 harvest will be 1.9 million tons, 1% less than last year, with a “good to excellent” quality rating. Up to 3% of grapes were left unpicked after wine companies deserted growers, and industry experts predict that 4 or 5 more years will pass before supply/demand returns to normal.


"Greater production of whites will redress recent shortages of this category and will provide sales growth opportunities that have been potentially under supplied in recent years with whites driving export growth," the AWBC said in its report. Most of the oversupply has been in reds which fell 5% in the recent grape crush.