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National Vintage Report 2019 Wine Australia 1 Figure 1: Historical Australian Winegrape Crush 2009–2019

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National Vintage Report 2019 Wine Australia 1 Figure 1: Historical Australian Winegrape Crush 2009–2019 Wine Australia for National Vintage Australian Wine Report 2019 At a glance summary • The Australian winegrape crush in 2019 was 1.73 million tonnes – a decrease of 3 per cent from the 2018 harvest • The crush was very close to the long-term average of 1.75 million tonnes • Warm regions decreased less than cool/temperate regions: − The crush in cool/temperate regions decreased by 5 per cent − The crush in warm regions decreased by 2 per cent − Warm inland regions increased their share of the overall crush from 72 per cent to 73 per cent • Red varieties fared better than white varieties in terms of production: − Red varieties overall up by 2 per cent − White varieties down by 8 per cent − Shiraz down by 2 per cent − Cabernet Sauvignon up 3 per cent − Merlot up 13 per cent − Chardonnay down 12 per cent • Average winegrape purchase prices increased across the board: − The average across all varieties increased by 9 per cent to $664 per tonne – the highest since 2008 − The average across all red varieties increased by 9 per cent to $845 per tonne − The average across all white varieties grew by 4 per cent to $462 per tonne • The total estimated value of the crush increased by 6 per cent to $1.17 billion, with the lower tonnages offset by higher average prices • The proportion of winery grown fruit was up slightly to 32 per cent of the 2019 crush. Overview of the 2019 winegrape crush The 2019 winegrape crush is estimated to be 1.73 million in 2019 across all vineyards was 11.8 tonnes per hectare, tonnes, based on responses received by the National compared with 12.2 tonnes per hectare in 2018 and 13.6 Vintage Survey 20191. The estimated crush is 3 per cent tonnes per hectare in 2017 (assuming the same vineyard lower than the 2018 final crush figure of 1.78 million area for all three years). tonnes2 and only 1 per cent below the average over the past 10 years (2009-2018) of 1.75 million tonnes. This further reinforces Australia’s ability to deliver consistent winegrape harvests and mitigate the effects of difficult weather conditions such as those widely reported prior to the 2019 harvest. The result of the recently published National Vineyard Scan 2018 indicates that the total area of vineyards in Australia is 146,128 hectares. Therefore, the average yield 1. See method section 2. Department of Agriculture levies unit recorded figure. Note this is different from the Wine Australia estimate reported in the National Vintage Report 2018 – see method section. National Vintage Report 2019 Wine Australia 1 Figure 1: Historical Australian winegrape crush 2009–2019 2000 Wine Average 1.75m tonnes 2009–2018 Australia Estimate 1500 1000 Crush in ’000s tonnes 500 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Levies Revenue Service The decline in tonnes was higher in percentage terms Across the states, South Australia’s reported crush was from the cool/temperate regions, which were down by down 1 per cent, New South Wales was down 3 per cent, 5 per cent overall, while the warm inland regions (Riverina, Victoria was down 4 per cent and WA was down 6 per cent. Murray Darling-Swan Hill and Riverland) were down by 2 South Australia accounted for 50 per cent of the crush per cent. This led to a small increase in the warm regions’ (see Figure 2). share of the crush from 72 per cent in 2018 to 73 per cent in 2019. Figure 2: Share of crush by state 20193 Western Australia 2% Victoria New 17% South Wales 30% Tasmania 1% Queensland <1% South Australia 50% 3. The crush from Murray Darling-Swan Hill has been allocated to Victoria and New South Wales in the proportions 59 per cent/41 per cent – reflecting the respective vineyard areas according to the National Vineyard Scan 2018. National Vintage Report 2019 Wine Australia 2 Looking at the largest GI regions across Australia, there trouble-free vintages after a low-yielding 2018. The were generally reduced yields in central regions in South warm inland regions generally had a very similar crop Australia as a result of extreme heat at crucial points in to last year, demonstrating the ability of irrigation, when summer and a dry winter, offset by significant increases available, to offset the effects of heat and dryness in the Limestone Coast regions, which had relatively (see Figure 3). Figure 3: Percentage change in crush for largest 20 GI regions 2019 vs 20184 90 80 70 60 50 40 30 20 10 0 % change -10 -20 -30 -40 -50 -60 Hunter Riverina Riverland Tasmania King Valley Heathcote Swan Hill Padthaway Clare Valley Yarra Valley Eden Valley Coonawarra McLaren ValeWrattonbully Adelaide Hills Barossa Valley Margaret River Great Southern Murray Darling – Langhorne Creek Goulburn Valley Crush by colour and variety The 2019 crush saw red varieties fare better overall than The top 10 red varieties had mixed results nationally, with whites in terms of yield. The 2019 red variety crush is Shiraz, Pinot Noir6 and Grenache recording decreases estimated to be 941,583 tonnes – an increase of 16,224 of between 2 per cent and 15 per cent, while Cabernet tonnes (2 per cent) compared with 2018. The white variety Sauvignon, Merlot and Ruby Cabernet increased by crush is estimated to be 786,871 tonnes, a decrease of between 3 per cent and 13 per cent (see Figure 4). The 66,949 tonnes (8 per cent) compared with 2018, and biggest percentage increases were in Durif (up 29 per cent) more than 100,000 tonnes below the record 2017 crush of and Malbec (up 46 per cent). Malbec reversed a 38 per 891,907 tonnes. This meant that red varieties increased cent decrease in 2018 and returned to the top 10 at the their share of the crush to 54 per cent, compared with expense of Mataro/Mourvèdre. 52 per cent in 2018. In tonnage terms, the biggest contributor to the increase Warm inland region5 reds were up by 5 per cent while was Merlot (up 13,589 tonnes), while Shiraz had the largest warm region whites were down by 8 per cent. This reverses decrease (down 7816 tonnes). the 2018 result, where reds were down and whites were Grenache recorded a drop of 15 per cent and slipped up. In the cool climate regions, both reds and whites were below Ruby Cabernet in the top 10 rankings. down – the whites by 9 per cent (in line with the warm regions) and the reds by 4 per cent. Pinot Noir reduced by 10 per cent (5317 tonnes) after an exceptionally high crop in 2018. 4. As response rates can vary from year to year, apparent changes in the crush may be partly attributable to a change in the response base. Percentage changes are particularly unreliable in smaller regions. 5. Murray Darling-Swan Hill, Riverina and Riverland. 6. The survey does not differentiate between Pinot Noir used for sparkling (white) and that used for red table wine. It is all counted as a red variety. National Vintage Report 2019 Wine Australia 3 Durif increased by 29 per cent to a record 11,845 tonnes. The top three varieties account for 84 per cent of the red It has nearly doubled in crush since 2015. Most of the crush. Shiraz’ share of the red crush fell from 46 per cent to growth has been in the Riverina, which accounts for 44 per cent, while Cabernet Sauvignon remained at 27 per two-thirds of the Durif production. cent and Merlot increased from 11 per cent to 13 per cent. Figure 4: Comparison of 2019 and 2018 crush for top 10 red varieties 500 -2% 2018 crush 400 2019 crush % change YoY 300 3% ’000 tonnes 200 13% 100 -10% 1% 8% -15% 29% 46% 13% 0 Shiraz Cabernet Merlot Pinot Noir Petit Verdot Ruby Grenache Durif Malbec Tempranillo Sauvignon Cabernet Only five of the top 20 white varieties increased their crush in the past five years and 7 per cent below the five-year volume in 2019. The Chardonnay crush decreased by average of 97,580 tonnes. Other top 10 varieties decreased 12 per cent (47,975 tonnes) to 356,250 tonnes, the lowest by between 7 and 14 per cent, except for Muscat Gordo in the past five years. This saw its share of the white crush Blanco (up 4 per cent) and Prosecco (up 42 per cent). decrease from 47 per cent in 2018 to 45 per cent in 2019. The Prosecco crush has increased from 2189 tonnes in Most of the decline in Chardonnay came from Murray 2015 to 9936 tonnes in 2019 – nearly a 50 per cent average Darling-Swan Hill, which was down by 17 per cent (19,422 annual increase. This has seen it jump from 17th largest tonnes) and may partly reflect changes in plantings and/ white variety in 2015 to 10th in 2019 – displacing Verdelho or irrigation strategies as well as seasonal conditions. in the top 10 (See Figure 5.) In percentage terms, the largest decreases were in Eden This growth in Prosecco production is mirrored in the Valley and the Adelaide Hills, where the Chardonnay crush domestic market, where sales of Prosecco have increased was down by around 50 per cent. by over 100 per cent in the past two years and it is now The second largest white variety, Sauvignon Blanc, the 11th largest varietal/wine style by value in the off-trade decreased by 1 per cent to 90,474 tonnes – the lowest retail wine market.7 7.
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