Home' Grower : November 2013 Contents 34 The South Australian Grower -- November 2013
Updated model maps global export patterns
WHILE revealing the true
cost that Australia's high
dollar has had on the
wine industry in recent times,
new economic research has also
given the industry cause for cau-
The project, undertaken by
the University of Adelaide and
Monash University, mapped new
and revised data to create an
updated model of the world's
University of Adelaide School of
Economics Prof Kym Anderson
and Monash University's Glyn
Wittwer led the research project
that showed how Australia's
super premium wine exports lost
one-fifth of their value between
2007 and 2011, mostly as a
result of the high exchange rate.
Prof Anderson said that
although the harsh effect of the
high $A relative to the US$,
UK pound and the Euro was
common knowledge, he was
surprised by the results.
"What they reveal is that, thanks
to exchange rate movements,
wine exporters lost competitive-
ness far more in Australia than
in other Southern Hemisphere
countries during 2007-12," he
The project is funded by the
Grape and Wine Research and
The model was first created and
released 12 years ago to project
the growth and structural changes
taking place in the world's rapidly
globalising wine markets.
"So much has changed in wine
markets since then, in particular
because of exchange rate move-
ments resulting from the global
financial crisis and the unprec-
edented growth of China," Prof
Anderson said said.
The newly revised economic
model also projects wine exports
in the next five years, based
on assumptions about future
exchange rate movement and
China's wine import demands.
Prof Anderson said with the
recent drop in the $A, the
Australian wine industry would
be much better positioned to
compete internationally, includ-
ing in China as its demand for
wine imports increases.
"Wine consumption is pro-
jected to increase faster than
production in China over the
next five years," he said.
"If Australia invests as much
as other wine exporters in that
market, and the Australian dollar
doesn't rise again, our results sug-
gest China's share of Australia's
wine export earnings could rise
from 13 per cent in 2012 to 20
plus per cent by 2018.
"That suggests some cau-
tious optimism in the industry
is warranted given the recent
changes in exchange rates, which
are making Australian producers
more competitive not only in our
home market and in China, but
also in our traditional markets,
particularly the US."
Prof Anderson said the research
presents three scenarios for the
Australian wine industry by 2018.
The three different scenarios
highlight how much the pro-
jected outcomes for different
countries depend on changes
in future exchange rates and in
China's consumption, produc-
tion and imports.
"The three alternatives show
the big differences between
projections based on varying
exchange rate movements -- one
of the most positive being if the
rate changes experienced during
2009-11 are reversed, as is cur-
rently happening", he said.
GWRDC executive director
Stuart Thomson said this research
offered an important insight into
the Australian wine industry.
"These results about inter-
national wine demand and
global exchange rates will help
Australian wine businesses better
understand future opportunities,
which helps support a competi-
tive Australian wine sector," Dr
them to increase
prices or make
cope with a loss
TWE awarded for Markaranka
Treasury Wine Estates' Markaranka
vineyard on the Murray River was
recently recognised for water
management excellence by the South
Australian Wine Industry Association.
The company received the 2013
Environmental Excellence Award (for
large businesses) at the association's
annual members lunch.
The 180-hectare vineyard near
Waikerie, SA, produces about 2500
tonnes of grapes annualy. The site
is also home to about 80 hectares
of River Murray floodplain fringed
by River Coobah thickets and large
mature River Red Gums.
An innovative water management
regime has seen TWE work with
many external partners to restore this
floodplain to health -- it was ravaged
by many years of drought earlier in
TWE general manager-sustainability
Gioia Small is delighted with the
"The preservation of the Markaranka
wetland has been a sustained effort
by many committed parties," she
Since 2006, the team has worked
with the South Australian Murray
Darling Basin Natural Resource
Management Board, the Riverland
West Landcare Group, the South
Australian Research and Development
Institute, and state and federal
governments to restore the floodplain.
In this time, a number of planned
watering events and a simulated
rainfall trial delivered via a network
of dripper pipes, has seen tree health
improve and at least 16 water-
dependent bird species and many frog
species return to the area.
"To see wildlife returning to an area
which previously had consisted only
of dry dirt and dying River Red Gums
is very satisfyling," Ms Small said.
Ashley wins top viticulture gong
THIS year's Viticulturist of the Year is
The award from Australian Society of
Viticulture and Oenology was sponsored by
Bayer CropScience and given at the annual
ASVO Awards for Excellence in Adelaide
The awards honour the most innovative
viticulturist, winemakers and researchers
within the Australian wine industry.
Ashley, Oxford Landing Winery and
Viticulture manager at The Yalumba Wine
Company, was recognised for his winning
submission which focused on identifying
stronger grapegrowing varieties to combat
climate change in the Riverland.
"It was a great night and I found it
especially humbling to be recognised and
acknowledged by my peers for the work
I've done," he said.
"This is one of many projects we
have been working on and our aim is to
continue our work identifying agricultural
solutions for farmers in the near future."
ASVO president Paul Petrie congratulated
Ashley on his "outstanding achievement
in developing a significant vitcultural
Bayer CropScience product manager-
horticulture Darryl Stretton said the
company was proud to be involved in the
ASVO awards again this year.
The awards were held at the National
Wine Centre of Australia during a gala
Links Archive October 2013 Dec 2013 - Jan 2014 Navigation Previous Page Next Page