South Australian Wine Industry Overview 2008-2009

South Australian Grape and Wine ScoreCard Report 2008/09 (pdf, 185kb)

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The South Australian grape and wine industry is presently experiencing several challenges with negative impacts measured across all aggregates. The challenges of domestic and global oversupply of grapes and wine; drought; global economic crisis; increased competition in global markets; volatile foreign exchange rates, particularly in the key markets of the UK and US; increased input costs and reduced water allocations have asserted a compounding affect.

Consequently, a significant decline in both production volumes and values across the value chain aggregates are demonstrated in tables 1 and 2.

Table 1: SA Wine ScoreCard - Change over Year to 2008/09, Value $million

Farm Gate
Value of
Grape
Production
Wholesale
Value of Wine
Made
Overseas
Exports
Net Interstate
Sales +
Change in
Stocks

Retail &
Hospitality
Consumption

Gross Wine
Revenue
(Sum of 3 to 5)
2008/09 $487m $1,962m $1,576m $60m $517m $2,153m
Change
over year
- $278m - $567m - $279m - $253m - $39m - $561m
% Change
over year
-36% -22% -15% -81% -7% -21%

Table 2: SA Wine ScoreCard Change over the Year to 2008/09

Grape
Production
(tonnes)

Wine Making
(million litres)
Overseas
Exports
(million
litres)
Interstate Trade
& Change in
Stocks
( m litres)
2008/09 730,904   506 449 15
Growth over
year
- 85,965  - 67 - 14 - 56
% Growth
over year
- 11 %  - 12%  - 3% - 79%

Grape production values declined by 36.4% to $487m with grape production volumes decreasing 11% to 730,904t. Average prices deteriorated significantly to $666/tonne, a decline of 29%.
Wholesale value of wine making declined by 22% to $1.96 billion, with volume down 12% to 506m litres.

Exports declined by 3% in volume to 449m litres and declined by 15% in value to $1.58 billion1. The greater decrease in value over volume highlights the challenges presently faced by industry in the global wine market. 

1 Export values are based on ABS Trade data (unpublished) using detailed 8 digit AHECC data. Note: slight differences in values between the ABS wine export data and other sources may be possible from time to time.