7 September 2006 
 
Unfavourable exchange rates, consolidation in the retail sector, increased international competition and growing consumer demand at lower price points have seen the Australian wine sector’s returns take a downturn in recent years leaving experts to speculate that the road to recovery will take four to five years.  
 
Lawrie Stanford, Manager - Information and Analysis, Australian Wine & Brandy Corporation, who is presenting at the Institute of Chartered Accountants annual Business of Wine Conference, said that in excess of 100,000 tonnes, or approximately five per cent of the harvest has been left in the vineyard in 2006.  
 
These results have increased from last year in which an estimated 50 000 tonnes of the harvest was left in the vineyard.  
 
The oversupplied wine sector, coupled with the slowing down of sales suggests that the recovery time will be several years longer than originally anticipated.  
 
“With lower price points dominating current sales a disparity between the opportunity for Australian wine at the top and bottom end price range has widened, resulting in price pressures in all sectors,” Mr Stanford said.  
 
Despite Australia being a very successful wine exporter - indeed it is the fourth largest wine exporter in the world behind France, Italy and Spain, it is necessary for the Australian wine sector to identify, in a more targeted way, market opportunities in order to overcome the oversupply of grapes while competing in a strong global market.  
 
“The challenge for the wine sector now is to redress the supply-demand imbalance by defending existing markets and through effective and targeted marketing campaigns, that aim to maintain the opportunities available at lower price points while expanding the wine sector’s creditable higher price point offer,” Mr Stanford said.  
 
Mr Stanford will be presenting on the Australian Wine and Grape Outlook, at the Institute of Chartered Accountants annual Business of Wine Conference in Melbourne (19 October) and Adelaide (20 October).  
 
Each conference will present industry renowned speakers over nine concurrent sessions, providing Australian grape growers the opportunity to learn more about industry developments and strategies to help overcome current economic difficulties and build the wine business for the future.  
 
To register contact (03) 9641 7400 for Victoria or (08) 8113 5507 for South Australia