Grape glut: Can Australia drink an excess of wine?

Wine growers are faced with difficult decisions in the wake of a national glut of wine, with some growers preparing to step away from the vineyards.

Wine makers are stuck with an “ocean of wine” in the face of a national grape glut, with some growers preparing to step away from vineyards.

It comes as pre-budget calls for financial assistance for the sector were ignored, as the industry grapples with recovery from fallout of China’s heavy tariffs on Australian wine since 2020.

Australian Grape & Wine had called for financial support from the federal government, including a $30 million sustainability package, $36 million for export assistance, and $20 million for domestic wine tourism.

The total value of Australian wine export in 2023 was $1.9 billion – a massive drop on the $2.91 billion recorded in 2019 was $2.91 billion, according to Wine Australia.

AGW chief executive Lee McLean said the plea was in the face of an uncertain future for Australian wine grape growers.

Wine growing regions such as Heathcote and the Murray Valley in Victoria, Riverland in South Australia, and the Riverina in NSW were of concern, and have “been absolutely smashed in the past three years”.

“We’re worried that without assistance … we’re going to see a lot of foreclosures, people losing their farms, and a huge impact on these communities,” Mr McLean said.

Australian Grape & Wine chief executive Lee McLean said the industry was struggling in the face of a national grape glut.

“The reopening of the China market is absolutely a positive. There are still good price points in China, and they like what we make, but they’re drinking less.”

Nikki Palun operates Octtava and Susuro Wines, with vineyards at Mornington Peninsula and the Pyrenees and a cellar door in Port Melbourne, and said the industry was “on our knees”.

“We built up a lot of pressure in terms of supply. You can’t stop growing grapes, they just keep growing,” Ms Palun said.

Wine maker Nikki Palun from Octtava and Susuro Wines said the industry “was on its knees”. Picture: Supplied.

“There’s a lot of uncertainty in the Chinese market, they’re not racing ahead to purchase our ocean of Australian wine.”

Ms Palun said consumers could buy local wine to support producers, but also keep pressure on the government for greater support.

“We were hoping for a stimulus package to help us thrive in the domestic market,” she said.

The Victorian government established the Victorian Wine Export Program 2023-25 worth $3.8 million to support Victorian wine exporters with expanding priority markets while also promoting the state’s wine industry.