One of our UK correspondents recently emailed: “I’m sure pricing discussions will be kicking off soon in the region, as a by the by I had a meeting with a major UK importer who reported that there is a massive shortage of varietal wine globally with South Africa, Argentina, Chile and bulk European countries in shortage and prices rising. This should allow slightly higher prices for Riverland growers in 2018…certainly not lower than 2017 under any circumstances”.
So the outlook continues to be positive. Riverland winegrowers have every reason to begin the 2018 growing season with a sense of optimism, confident that there will be strong demand for good grapes. As suggested recently for those growers who have uncontracted fruit available for sale, be prepared to negotiate. Be careful not to rush in and sign a supply agreement without being clear and confident about the terms and conditions of supply. We know that supply is tighter again this year with very few tonnes listed thus far on the register. The association has also been contacted by Grape Logistics an Adelaide Hills broker, keen to secure supply of Riverland grapes. Be careful of freight costs and be sure to factor these in before signing any agreement.
If you are unsure of any buyer’s credentials don’t hesitate to contact the Association for a background check.