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MVW News & Views Murray Valley Winegrowers MVW News & Views www.mvwi.com.au Representing the Murray-Darling and Swan Hill wine regions NSW-VIC MARCH - APRIL 2020 A message from the Chair The Covid 19 pandemic is with us now As a result of the virus the MVW office is and the impacts are, and will be, felt closed but staff are still available by phone in our communities for some time. and email. The office will reopen when the Unprecedented times brings out the best Government advises it is safe to do so. in people. The best outcomes are achieved when we all work together, we will come Life will be difficult in the next few months through this if we think of what is best for for many, so check on family, friends and our community. neighbours, by phone or other means, other than physical contact. Australians have dealt with challenging times before, during wars, droughts, All we can do, as always, is to make depressions and recessions. To stay safe informed decisions based on the best you need to heed advice and stay up to available advice at the time. date with the warnings as information on the virus is and will change almost daily. We will get through this together. The year ahead will have many challenges Peter Crisp including health, economic recovery and Chairman Peter Crisp the way we do business. Page The virus has impacted wine sales, MVW office closure INSIDE particularly to China. Although the 2020 IDC Events 2 crush has not been formally reported, it is Due to government restrictions Onward and Upward - V20 Report 3 apparent the local and national crop will be to control the spread of the smaller than last year and below the long Covid 19 virus, the MVW office Vote for new IDC term 4 term average. It is likely the smaller crop is closed for the time being. Sunraysia experience shines 5 will counteract any decline in sales. Forum Delayed 6 Our staff are still able to This has been a difficult year, beginning Survey results are in 7 with water issues, followed by bush fires be contacted by telephone and now a pandemic, all of which have had and email, however face to Wine Australia 8 an impact on the wine industry. face meetings have been - Independent board review suspended. That’s a wrap from the AAVWS 9 There are Government assistance packages available to assist through these difficult Swan Hill Grape Growers 10 Telephone: 03 5021 3911 and Association – AGM & Demo day times. your call will be diverted to a Australian Inland Wine Show Results 10 As part of the Victorian Government staff member. From the Vine - Grower profile 11 response to the virus, the MVWG IDC Order Email: [email protected] and renewal due later this year will likely need SuniTAFE supports the future 11 to be varied with conditions. This levy is one of our staff will respond at prosperity of farming vital for our industry and our Executive the earliest opportunity Wine Australia - Export Report 16 Officer has further details in this newsletter. Murray Valley Winegrowers MVW News & Views IDC Annual General Meeting & Project Approvals The Murray Valley Wine Grape Industry 2019-20 2020-21 % Development Committee (IDC) held Project $ $ Difference its Annual general Meeting on 12th December 2019. Grower Communications 71,610 70,565 (1) The AGM considered the usual Information Collection & Database 43,692 44,550 2 administrative obligations, Chair Jan management O’Connor’s Report, the IDC Annual Report and MVW Executive Officer, Paul Derrico Winegrape Crush Report & Price Indications 2,574 9,647 275 presented a summary of proposed MVW/ Production Support (incl. Biosecurity IDC projects for 2020/21. management, grapes for sale register; spray 18,359 19,817 8 diaries & the IDC Poll) The meeting was advised that GROWERS Project preparations, development & had approved projects proposed by 22,990 8,624 (62) delivery MVW for 2020-21; voting was overseen by the Murray Valley Wine Grape Industry Support regional wine shows 5,984 5,434 (9) Development Committee and the results announced indicated an average approval Weather Station Network 21,472 48,202 124 rate of 98 percent. Winegrape industry development (incl. 82,544 77,990 (6) The projects are substantially the same as Inland Wine Regions Alliance) those being delivered by MVW through TOTAL 269,225 284,829 6 2019-20. The main changes are the inclusion of Price Indications to keep growers informed of up-to-date price estimates at important times of the year IDC – Committee and to provide growers with an informed Jan O’Connor decision making tool (per the ACCC Market Study Recommendation); the (Chair) weather station network is also earmarked Murray Valley for additional expenditure due to the Rachael McClintock Winegrape Industry proposed purchase of two NEW stations Development Committee (Industry Representative) (locations yet to be determined) and the www.mvwi.com.au replacement of 5 of the older stations. The table illustrates the difference between Graeme Thornton Murray Valley the current year projects and those (Industry Representative) approved for 2020-21: Winegrowers The AGM also noted the IDC Order renewal Selina Wilson MVW News & Views requirements for another four year term, (Grower Representative) due in late 2020. MARCH-APRIL 2020 Tony Mathews Published by: Murray Valley Winegrowers Inc (Grower Representative) Editor: Paul Derrico Email: [email protected] Brent Farnsworth Representing winegrape growers in the (Grower Representative) Murray Valley region within the Shires of Wentworth and Balranald, and Rural Cities of Mildura and Swan Hill. Justin Kassulke (Grower Representative) Murray Valley Winegrowers Inc 54 Lemon Avenue, Mildura 3500 Myles Parker PO Box 2745, Mildura, Victoria 3502 (NSW Government Representative) Phone: (03) 5021 3911 Amanda Ellery www.mvwi.com.au Jan O’Connor – IDC Chair (VIC Government Representative) 2 MARCH - APRIL 2020 Onward and Upward Vintage 2020 Report Average market prices* as at March 26 By the time this report goes to print, we 2019 APP 2020 2020 High 2020 Low expect that harvest will be complete. Variety % Variance $/tonne $/tonne $/t $/t There have been varied reports of reduced Cabernet yields for 2020 harvest, with the odd 607 697 15 750 660 exception of an increase in a few patches Sauvignon – overall it is our estimate that production Chardonnay 365 406 11 440 360 in the Murray Valley will be around fifteen Colombard 275 319 16 370 250 percent below that of 2019. Gordo 281 333 19 390 280 Grape prices for this year have again Merlot 553 674 22 705 610 shown improvement, with mainstream reds generally being the mainstay for Pinot Gris 496 560 13 700 500 growers. Whites largely improved as well, Pinot Noir 451 632 40 750 550 although not to the extent that reds did. Prosecco 545 810 49 950 550 Sauvignon There were some standout performers, 434 478 10 580 420 albeit unfortunately at the expense of Blanc other regions that suffered at the hands Semillon 292 332 13 380 290 of the catastrophic bush fires and/or Shiraz 601 696 16 750 660 subsequent smoke taint issues. Varieties that benefited from out of region buyers *Average prices calculated from reports of wine company & buyer prices in the Murray-Darling & Swan entering the local market included Hill regions. Average prices are not weighted and should be regarded as a guide. Prosecco ($900+/tonne), Pinot Gris ($700- APP = Average Purchase Price $750/t) and Pinot Noir (circa $800/t). Conversely, it was disappointing to note that table and you are dissatisfied, you need to a handful of wineries saw fit to deal with check your Grape Supply Agreement to see The major wineries initially set indicative some growers confidentially “one-on-one” prices only marginally above the prices if there is any price dispute mechanism. to negotiate improved prices rather than of 2019 season, despite all indicators apply amended prices across the board to pointing towards an improved outlook. Above all else, communicate your their respective contracted grower base – Ultimately, better prices were achieved disappointment to your winery and see this did nothing to instil confidence and through MVW advocacy on growers’ behalf what they respond with – a number of trust. and growers taking up the challenge to wineries have indicated they will meet demand greater compensation to reflect the district average prices contained in This year’s estimated prices are shown in increased production costs and supply/ the 2020 Murray Darling & Swan Hill Wine the MVW Price Watch table above. demand influences. Grape Crush Report when it is released mid-year (prices will be adjusted if their It was pleasing to note the true Check your prices current prices are deemed below the Crush leadership shown by a couple of the Report figures). larger intermediate wineries to set prices and contract well above the lowly prices set by some If the prices that you have been advised major wineries; this was a reflection of by your winery for vintage 2020 are not If you need any assistance with price of their desire to keep growers viable within the range shown in the Price Watch disputes please contact the MVW office. and remaining in the wine industry despite the production challenges. It also gives growers some hope for the year ahead after exhausting last year’s water carryover and financial reserves in producing the 2020 crop. Credit is also due to a couple of wineries that released growers when they could not meet price expectations – this was done openly and transparently by these wineries to acknowledge the essential need of some growers to achieve their best possible financial return in light of increased production costs, especially water expenses.
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