Regional winemakers prepare for 2022 vintage

Regional winemakers prepare for 2022 vintage

Coonawarra winemakers are busy preparing for vintage 2022 while expanding their current export markets and grappling with logistical issues regarding shipping delays.

The equivalent of approximately 180,000 tonnes of fruit into wine was being sent to the Chinese market each year until China imposed tariffs of up to 220% on Australian wine last year, which Coonawarra Grape and Wine Incorporated president Pete Balnaves said virtually priced Australia out of the market.

Since the Chinese market has been off the cards for the Australian wine industry, Mr Balnaves said there was more product available to expand into existing markets such as the United States, Canada and Singapore.

He believed it was unlikely the Chinese market would return in the foreseeable future and therefore the industry needed to make adjustments to work with the circumstances.

Mr Balnaves said there were logistical issues with moving freight due to shipping containers stuck in California, which was a hindrance to expanding existing markets. Exporting wine to America typically takes four to six weeks, however, it is currently taking up to three months.

“Because of the sales into China and shipping’s a bit of an issue, to add to this there’s going to be some logistical issues with actually getting fruit into wineries this year,” he said.

“You need to be delivering into a winery that’s got capacity with tanks, so the logistical issue is moving the previous vintages out to be able to bring the next vintage in, so that’s being worked on.

“There’s signs of movement there, but it’s certainly something the industry’s going to have to grapple with.”

In regards to vintage, Mr Balnaves said the 2021 season was very good by way of yield and quality. However, the 2022 vintage, due to start in March, has been very mild so far with temperatures two degrees below average during October, which caused the initial part of the season to be late.

“We’re really looking for some more warm weather to try and pick that time up the cool start of season temperatures have caused,” he said.

Mr Balnaves said domestic wine sales had been very strong, but as a region they looked forward to visitors from other states returning to the Coonawarra.

He said the region had missed Victorian visitors, who accounted for 65% of the Coonawarra’s market before the pandemic.

“We are hoping the next variant, Omicron, does not disrupt too much of that interstate travel,” Mr Balnaves said.

“Because cellar doors and regions offer a very important front of house to get people acquainted with the region or a wine company or a product.”

Staffing cellar doors was also a challenge because government regulations required businesses be adequately staffed for increased visitation.

“Finding staff in the first instance is quite difficult, but if Victoria’s restricted you could end up having staff on that you do not need,” Mr Balnaves said.

“So the balancing act of trying to get those two things to work is going to be interesting.”

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