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Growth and Cycles in Australia's Wine Industry

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Growth and Cycles in Australia's Wine Industry A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Anderson, Kym; Aryal, Nanda R. Book — Published Version Growth and Cycles in Australia’s Wine Industry: A Statistical Compendium, 1843 to 2013 Provided in Cooperation with: University of Adelaide Press Suggested Citation: Anderson, Kym; Aryal, Nanda R. (2015) : Growth and Cycles in Australia’s Wine Industry: A Statistical Compendium, 1843 to 2013, ISBN 978-1-925261-09-7, University of Adelaide Press, Adelaide, http://dx.doi.org/10.20851/austwine This Version is available at: http://hdl.handle.net/10419/182252 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ www.econstor.eu Welcome to the electronic edition of Growth and Cycles in Australia’s Wine Industry. The book opens with the bookmark panel and you will see the contents page. Click on this anytime to return to the contents. You can also add your own bookmarks. Each chapter heading in the contents table is clickable and will take you direct to the chapter. Return using the contents link in the bookmarks. Please use the ‘Rotate View’ feature of your PDF reader when needed. The whole document is fully searchable. Enjoy. About the Authors Kym Anderson is George Gollin Professor of Economics and foundation Executive Director of the Wine Economics Research Centre at the University of Adelaide. He has published numerous articles on the economics of wine for industry and academic journals as well as a 2004 book on The World’s Wine Markets: Globalization at Work. He is also the senior author of a 500-page statistical compendium on Global Wine Markets, 1961 to 2009 (2011) and a 700-page statistical compendium on Which Winegrape Varieties Are Grown Where? (2013), both published by the University of Adelaide Press. He has served on the Board of Directors of Australia’s Grape and Wine Research and Development Corporation (2000-05), and is a co-founder and Vice-President of the American Association of Wine Economists and a Co- Editor of Cambridge University Press’s Journal of Wine Economics. Nanda R. Aryal was a Research Assistant in the Wine Economics Research Centre at the University of Adelaide at the time of this study. He has MSc degrees in mathematics and statistics from both the University of York in England and Tribhuvan University in Nepal, and is currently a Doctoral student at the University of Melbourne. This book is available as a free fully-searchable PDF from www.adelaide.edu.au/press Growth and Cycles in Australia’s Wine Industry: A Statistical Compendium, 1843 to 2013 Kym Anderson with the assistance of Nanda R. Aryal This volume provides time series data for the major wine regions of Australia from the 1840s, to complement a volume on global wine markets (published in December 2011) and one on where the various winegrape varieties are grown in the world (published in December 2013), both by University of Adelaide Press. All three volumes are published in paperback and are also freely available as e-books at www.adelaide.edu.au/press/titles K. Anderson and S. Nelgen, Global Wine Markets, 1961 to 2009: A Statistical Compendium, Adelaide: University of Adelaide Press, 2011 K. Anderson (with the assistance of N.R. Aryal), Which Winegrape Varieties are Grown Where? A Global Empirical Picture, Adelaide: University of Adelaide Press, 2013. (Recipient of the 2014 OIV Prize from l’Organisation Internationale de la Vigne et du Vin) This volume is freely available as an e-book at www.adelaide.edu.au/press/titles/austwine The data are also freely available in Excel spreadsheets at www.adelaide.edu.au/wine-econ/ databases/winehistory The author welcomes comments on how to improve the quality and coverage of data and the way they have been summarized. Please send feedback to: Professor Kym Anderson, Executive Director Wine Economics Research Centre School of Economics University of Adelaide Adelaide SA 5005 Australia Phone (+61 8) 8313 4712 Fax (+61 8) 8313 1460 [email protected] www.adelaide.edu.au/wine-econ Growth and Cycles in Australia’s Wine Industry: A Statistical Compendium, 1843 to 2013 Kym Anderson with the assistance of Nanda R. Aryal Wine Economics Research Centre School of Economics University of Adelaide Adelaide, South Australia Published in Adelaide by University of Adelaide Press The University of Adelaide Level 14, 115 Grenfell Street South Australia 5005 [email protected] www.adelaide.edu.au/press The University of Adelaide Press publishes externally refereed scholarly books by staff of the University of Adelaide. It aims to maximise access to the University’s best research by publishing works through the internet as free downloads and for sale as high quality printed volumes. © 2015 Kym Anderson This work is licenced under the Creative Commons Attribution 4.0 International (CC BY-NC-ND 4.0) License. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ or send a letter to Creative Commons, 444 Castro Street, Suite 900, Mountain View, California, 94041, USA. This licence allows for copying any part of the work for personal and commercial use, providing author attribution is clearly stated. Address all inquiries to the Director at the above address. For the full Cataloguing-in-Publication data please contact the National Library of Australia: [email protected] ISBN (paperback) 978-1-925261-08-0 ISBN (ebook) 978-1-925261-09-7 Cover image: iStockphoto Inside cover image: © 2014 Dragan Radocaj, Pindarie cellar door and homestead Cover design: Emma Spoehr Project coordinator: Julia Keller Paperback printed by Griffin Press, South Australia Table of contents Page List of charts xi List of tables xv Preface and acknowledgements xxiii Technical notes xxv Statistical sources xxix Executive summary of key findings xxxv Ch. 1 A guide to the industry’s growth and cycles 1 1.1 Introduction 1 1.2 Candidate indicators of wine industry developments 5 1.3 The five cycles to date 7 1.4 Was the optimism at the start of the fifth cycle warranted? 25 1.5 What did innovation and generic marketing and R&D contribute? 28 1.6 Australia’s wine industry growth in international historical perspective 30 1.7 Why such a sharp decline in profits and yet sluggish disinvestment? 34 1.8 In retrospect, was the industry helped or hurt by protectionism? 35 Annex: Conceptualizing the market for a nation’s wine 37 Ch. 2 Regional developments from the late 20th century 47 2.1 Introduction 47 2.2 Sources of regional data 48 2.3 Regional differences and their contributions 49 2.4 Are regional differences being recognized in the market? 53 2.5 Which regions have adjusted most since the latest downturn? 53 Ch. 3 Varietal developments since the 1950s 55 3.1 Introduction 55 3.2 Evolution of winegrape varietal mix 56 3.3 Emerging varieties in Australia 56 3.4 Indicators of varietal mix and quality distinctiveness 57 3.5 The global data 59 3.6 Australia’s varietal distinctiveness globally 59 3.7 Varietal quality differences within Australia 61 x 3.8 Varietal prices and summer temperatures 62 Ch. 4 Where to from here? 63 4.1 Market prospects 63 4.2 What about the varietal mix across regions? 66 4.3 Policy and institutional implications 67 4.4 Some lessons from history 69 4.5 Conclusion 71 References 73 Grape and wine market developments in 86 charts 83 I. Australian Grape and Wine Production, Consumption and Trade 83 II. Regional grape and wine developments from the late 20th century 119 III. Winegrape varietal developments since the mid-1950s 135 Table sections 147 I. Grape and wine production, consumption and trade since 1843 147 II. Regional grape and wine developments from the late 20th century 271 III. Winegrape varietal developments since the mid-1950s 391 IV. Appendix of macroeconomic and international data since the early 1800s 485 V. Regional varietal area, production and price data, 1999 to 2013 551 (online in Excel, as are the above series of tables, at www.adelaide.edu.au.wine-econ/databases) xi List of charts Section I — Charts: Australian grape and wine production, consumption and trade 83 1. Bearing area of vineyards, wine production, and wine exports, 1986 to 2013 84 2. Volume, average price and value of export sales of Australian wine, 1990 to 2013 84 3. Value of wine exports, Australia and other New World countries, 1995 to 2014 85 4. Index of revealed comparative advantage in wine, Australia and other key 85 exporters, 1986 to 2012 5. Bearing area of vineyards, Australia and South Australia, 1843 to 2013 86 6. Wine production, Australia and South Australia, 1843 to 2013 887 7. Volume of Australian wine exports to United Kingdom and world, 1854 to 2013 888 8.
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