…to determine grape or wine prices
Over recent decades the relationships between growers and wineries have increasingly been reduced to writing in the form of complicated contracts and industry codes. An outcome of this trend has been a weakening of value chain principles.
In a value chain, every link from the grower to the consumer, understands inter-dependence; the need for every link to be strong for the business or industry to grow and be viable in the long run. In a perfect value chain, besides having a relationship with his/her customer (the winery who purchases his/her grapes), the grower actually knows who is purchasing the end product. Likewise, in that perfect value chain the wine consumer knows who grew the grapes and where they were grown.
In the grape and wine industry many of those older-style relationships have stalled or fractured. It’s true the Riverland’s boutique and artisan wine producers build and maintain strong value chains but most members are bound by contracts with larger organisations where the lack of transparency and pressures on field staff make it difficult to know where or who the consumers are. Contracts and the Code have placed the emphasis fairly and squarely on indicative prices and their release in mid-December each year.
To assist growers in understanding the relationship between the price per litre for bulk wine and the indicative prices offered for grapes, Riverland Wine has developed a simple ready reckoner. This tool makes it very easy to see what the price per tonne can be, based on the price per litre of bulk wine at the point of sale. All members are urged to go online and use the tool and provide feedback. In the next few weeks Riverland Wine will set up a link to enable members to reference bulk wine prices on-line also. Let us know what you think about the tool.