WINEGRAPE growers should not expect higher prices.
This is despite a report that suggests wine exporters are raising the sale price of their wine.
According to the quarterly Rabobank wine report, bottled wine export prices rose 4.8 per cent to $4.30 a litre and bulk wine prices were up 6.3 per cent to $1.01 per litre.
The report said export volumes, which declined 10.9 per cent, remained under pressure from reduced stocks and the high Australian dollar.
But Wine Grape Growers Australia executive director Lawrie Stanford said growers were yet to see the benefit of higher prices.
"We're observing there's marginal movement in lower price points in the lower valued area, but there does appear to be some significant movement at higher price points that affects about one quarter of the crop," he said.
"We're also observing winemakers are getting caught up in the bulk wine trade and it's all about getting fruit at the cheapest price possible - a deadly situation for growers, particularly in the warm inland areas."
Mr Stanford said this year's crop was expected to be solid, albeit lower yielding, and the three-month Bureau of Meteorology forecast of a hot, dry finish to the season boded well for quality.
Murray Valley Winegrowers chief executive officer Mark McKenzie said there had been signs of recovery in prices for some varieties, with up to $450/tonne offered for cabernet sauvignon and merlot, and $325/tonne for chardonnay.
Mr McKenzie said prices for most of the white varieties, including chardonnay, were still at or below the cost of production, while merlot and cabernet sauvignon were starting to reach break-even or a bit better.
"With cost increases in electricity, fuel, agri-chemicals and other inputs, at $375 people are going to be taking a loss in terms of being able to repay debt," he said.
Growers in the Riverina were faring no better, thanks to a lack of competition, according to Riverina Wine Grape Marketing Board chief executive officer Brian Simpson.
Mr Simpson said at least two growers had mothballed their vineyards for the season.












