Reality Bites

The outcome of the CCW Price Determination case was communicated last Thursday evening to members. Early feedback is mixed but one thing is certain; this is a dose of reality. The independent expert’s decision on prices is final and binding.  The rationale for making the call on Shiraz at $385 and Cab Sav at $380 will need to be investigated to be understood.  These two prices were somewhat unexpected, especially in the light of the Kingston Estate prices and those of the other majors and minors, all of which broached the $400 per tonne tipping point for vintage 2017.

This decision again highlights the need for all growers to understand the marketplaces their grapes are destined for, especially if they are most likely heading for export markets.

Riverland Wine has been encouraging members to understand the linkages between the value of a tonne of grapes and the value of a litre of wine in different countries and retail outlets around the globe. Before planning 2018 crops, it’s important to have a grasp of the factors that impact wine prices. Jim Caddy has been doing more work on this recently. His insights will be presented at the May Breakfast Meetings.  Riverland Wine is also engaging with those who purchase the majority of Riverland fruit and the wine brokers who monitor market fluctuations to improve the quality and timeliness of data between the vineyard and the consumer.

Although these most recent pricing outcomes most directly impact CCW and Accolade suppliers, the sheer volume of that intake in this region means it will have a significant bearing on average prices paid for grapes in 2017 so reality is, that there will be an indirect impact on next year’s prices for all growers. 

Notwithstanding those observations, another aspect of reality is that some growers are making headway at these prices.

More reality… The headlines continue to be positive. These may be contentious at times but that’s another reason to become more informed about what’s happening at the front-end. Another reason to mark down the dates of the May breakfasts in your electronic diary.  For those reading this electronic copy of the roundup, check some of the latest market commentary here.

 

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