Coonawarra wine producers are among those in South Australia braving challenging conditions due to the rising cost of living including rising expenses, reduced visitor numbers and decreased consumer spending as well as the downturn in export markets.


Coonawarra Vignerons Association executive officer Hugh Koch said it was a tough time for the industry which faced difficult macro-economic circumstances.


“There is no question that visitation and the visitation numbers to regional parts of South Australia have certainly been more challenging in the last couple of years. I think a big result of that has been the economic climate, no question,” he said.


“This year we obviously saw a big uptick to the coast with the great weather we have seen and it probably just meant that you did not see as many come into Coonawarra.


“(The festive period) has not been as busy as previous years but we certainly had a good number of people coming through, again the warm weather probably paid a part in that.


“I think also that importantly when people were here they seemed very careful with their dollars so they were very discerning with what they were spending.


“I think businesses generally are having a very close look at their inputs and their outputs and they keep innovating within their businesses to try and get some greater efficiencies which I know has been going on at the moment.”


Mr Koch said the Chinese market had changed considerably in the more than three years tariffs were imposed on Australian exported wine before they were removed on March 29 last year.


“The Chinese tariffs lifting has certainly provided a release on the pressure valve we were feeling 12 months ago,” he said.


“I think there are a lot of efforts being put into getting back into China. China is a different space and according to the statistics that have all been coming out the middle class of China which were some of the greatest drinkers are looking like they are in recession.


“I know that many of our members have been looking at working towards that which is fantastic so we hope China is still going to be an important market to us. It may not be quite what it was because it certainly is a different space there.”


Mr Koch said Coonawarra businesses were exploring alternative export markets.


“As always we work with our partners in the South Australian government and the federal government to try and look at other markets which might become more available in the medium and long term as well,” he said.


“I think the different businesses that were here did look at different markets but it was a difficult time to be looking to export wines.


“There were certainly other markets which were there such as southern Asia that a few have started to have a look into being a close market to us and I know there are other markets people have been exploring and trying to get into.


“It’s a very complex structure so you really have got to have a real understanding and look at the opportunities which are there to get into those markets.


“I think businesses are always looking at those opportunities if they’re there but they’re never as easy just to try and deliver on sometimes, so you really have to be well aware of what you’re getting into.


“There has been some exploration into those spaces and I think with the support of the Department of State Development now and more so Australia as well, some of our wineries have certainly looked at those opportunities, particularly as more emerging markets for them but it is not to say other markets will not come as well.”


However, it is not all bad news for Coonawarra wine producers with the 2025 vintage expected to be “another excellent vintage”.


“I think one thing that has always been very consistent for us in the last five years is the vintage which is coming up again so I think there is some really good signs for where Coonawarra sits for the 2025 vintage,” Mr Koch said.


“We have got four, five, six weeks to go obviously but all the factors have been pointing to a really good vintage again and that’s been the consistent message since early 2018.


“For the last six years it has been a really consistent place to produce wine so as a result of there has been a consistent product which gets into the market and we are looking forward to celebrating vintage when it comes again.


“Coonawarra continues to produce an absolute premium product and there always seems to be places for a premium product in the world and that is what we are certainly well regarded for.”


Meanwhile, the February meeting of Wattle Range Council heard of the current challenges facing Coonawarra grape growers from Riddoch ward elected representative Councillor Chris Brodie.


The industry veteran works part-time with the Australian Wine Research Institute.


Among his professional and industry memberships are the South Australian Wine Industry Association.


Cr Brodie said the Coonawarra Vignerons Association was about to launch the 2025 vintage.


“We hear of the problems in the Riverland but prices for grapes are also low in Coonawarra,” Cr Brodie said.


“Grapes are expensive to grow in Coonawarra and they have a lower yield. We are in desperate straits as no one is buying grapes.


“This is happening in Australia and worldwide. We are not immune and it has struck us hard.”