News on the 2007 Vintage
Tuesday, 6th March, 2007
- David Farmer
The drought has caused severe problems across the wine growing regions and when coupled with the impact of the multiple frosts in October and November it was known that yields for the 2007 harvest would be reduced.
The crops are now coming in and the latest information is as follows; McLaren Vale down 50-60%, the Clare Valley down 50%, the Riverland vineyards along the Murray down 40-50%, Padthaway down 60%, Coonawarra down 80-90% and the Barossa down 50%. Most of the Victorian regions of which we have no data were severely frosted so they will be well down. The only big area unaccounted for is the Riverina in N.S.W.
With yields the last few years being close to 2,000,000 tonnes collective opinion is saying it may well be closer to 1,000,000 tonnes. Our experience suggests that final figures always turn out a bit better but by any measure this is a huge drop.
The implications are obvious. The great oversupply will fill the void and stocks may then be in balance by the next vintage. Bulk wine prices have already firmed but not by a huge amount although the ‘give away’ cleanskin market may be harder to sustain.
Who would want to be a grape grower? The only businesses more uncomfortable would be the makers of stainless steel tanks. With supply way down no one will order new tanks and the tanks already being used to warehouse the oversupply will instead be emptied. Then again with the price of nickel who could afford new stainless steel?
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