Australia’s grubbing-up programs for vineyard acreage not effective

It was just under half of the vineyard acreages provided, about 14,000 hectares, that have been grubbed by the end of 2011, although the WRAA had marked about 20,000 to 30,000 hectares as superfluous that were to be removed from the viticulture. “The action goes on too slowly, and I’m afraid it falters completely”, Stephen Strachan said, CEO of the WFA (Winemakers’ Federation of Australia), that is the leading coordinator of the WRAA agenda. “Nevertheless, it is reassuring that we could at least implement half of what we had planned; we consider this as a progress, too.”

Furthermore, since the agenda, that has its roots in the global financial crisis, has started, the Australian dollar gained strength; so, the situation of Australian wine producers on the international wine markets got worse. Stephen Strachan is confirming this as well: “In the wake of the rise of our currency, wine sales are running very slowly. Moreover, during the last years, new wine acreages have been set up, which, in three years, will yield about 50,000 to 60,000 tons more of grape juice and then will make prices decreasing again.”

The excess production mentioned by Mr. Strachan could be compensated by grubbing-up the complete acreage provided for grubbing; this means in the end that Australia has to remove about 30,000 hectares from viticulture by 2014 at the latest.

Reducing the yield and grubbing the vineyard acreages, however, is not enough to swim out of the crisis, Strachan knows as well. “ We have to work hard and to think in long terms. It is not enough to control the yield strictly but we have to focus as well on as high as possible a quality and to develop new marketing strategies.” (red.yoopress)