Wine industry bouncing back from tough season

ABC - March 12, 2009

The wine grape harvest is underway and for many growers it has been a horror start to the year.

Heatwave conditions in South Australia and Victoria scorched fruit on the vines and the Victorian bushfires caused severe damage.

To make matters worse, exports are in the doldrums despite growth in demand from Asia.

Paul Henry from the wine and brandy corporation says it has been a rough ride for growers, particularly in Victoria.

He says although many communities were devastated by the losses during the Victorian bushfires, they have already started to get back on their feet.

"They're incredibly robust those communities and their ability to bounce back and their attitude to getting on with the job is life-affirming in itself," he said.

He says local wine growers are receiving help from all over the world to make a comeback.

"At this point we've got web portals and an international series of donations and help being run throughout the world from as far afield as California," he said.

"We've got events planned at the forthcoming London Wine Trade Fair in May.

"So there's practical assistance, there's financial assistance and there's community and healthcare assistance going on as well, so there's a lot of focus and a lot of work all at a community level."

Mr Henry says the southern Australian heatwave has posed challenges for some growers but others have reported good conditions for high grape quality.

"I think just like every year in Australia... the picture changes from state to state and region to region," he said.

"It's fair to say this year will be characterised by heat episodes in some regions and certainly the bushfire episodes in Victoria as far as the Yarra Valley goes.

"But there are other regions which are reporting very strong and very consistent conditions and certainly there is talk, despite the challenges of a strong outlook for quality."

Extreme weather conditions have not been the only challenges faced by grape growers this year as supply was expected to outweigh demand.

Mr Henry says the export demand from Asia has been the cloud's silver lining.

"The export picture at the moment is challenging, particularly in the UK and the US but... we have terrific growth currently out of Hong Kong out of China and out of Japan ," he said.

"I think the challenging start to this season may give us some upside in what was otherwise going to be difficult in terms of managing oversupply or managing supply and demand in general," he said.

But Mr Henry says the harvest is still a "picture in motion" and the success of the season will not be certain until the harvest is concluded.