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Grape Industry Analysis for Investment and Redevelopment

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TABLE<br />

DRIED<br />

WINE<br />

4.4 Farm gate value of wine, table <strong>and</strong> dried grapes<br />

Figure 5 shows the change in farm gate value of wine, dried <strong>and</strong> table grapes from 1997 to 2014.<br />

(Values are summarised from Figure 23, Figure 37 <strong>and</strong> Figure 52 respectively.)<br />

Farm gate value ($/hectare) represents the gross return to growers be<strong>for</strong>e deducting costs of<br />

production. Costs of production are not considered in this analysis (<strong>and</strong> are not a part of the<br />

project brief), but they vary <strong>for</strong> wine, dried <strong>and</strong> table grape production <strong>and</strong> vary over time having<br />

a significant impact on net income. For instance, while farm gate value of table grapes is much<br />

higher than wine <strong>and</strong> dried grapes, table grapes have considerably higher production costs<br />

impacting on net income. In<strong>for</strong>mation on costs of production can be sourced from relevant<br />

industry groups.<br />

Farm gate value of wine grapes declined by 37%; from $11,300 per hectare in 1997 to $7,100 per<br />

hectare in 2014.<br />

Farm gate values of sultanas, sunmuscats, raisins <strong>and</strong> currants increased between 1997 <strong>and</strong> 2014,<br />

with a 66% increase overall <strong>for</strong> dried grapes.<br />

Farm gate value of white table grapes decreased in the same period by 17%, but red <strong>and</strong> black<br />

table grapes increased by 31% <strong>and</strong> 88% respectively.<br />

Figure 5:<br />

Farm gate value (weighted average $/hectare) of wine, dried <strong>and</strong> table grapes<br />

<strong>Grape</strong>s 1997 2003 2006 2009 2014<br />

$/hectare wine<br />

grapes<br />

Change 1997-2014<br />

% $/ha<br />

White wine $10,127 $12,257 $9,058 $7,089 $7,528 -26% -$2,599<br />

Red wine $18,917 $9,180 $6,975 $6,901 $6,650 -65% -$12,267<br />

$11,300 $10,658 $8,007 $6,998 $7,100 -37% - 4,200<br />

Sultanas $5,031 $4,269 $7,150 $8,749 $8,300 +65% +$3,269<br />

Sunmuscat - $8,289 $6,469 $6,882 $10,313 +24% +$2,024<br />

$/hectare dried<br />

grapes<br />

$/hectare table<br />

grapes<br />

Raisins $8,048 $8,677 $11,172 $11,709 $10,877 +35% +$2,829<br />

Currants $9,867 $11,171 $9,301 $10,033 $11,326 +15% +$1,460<br />

Other dried - $7,046 $6,782 $14,676 $14,924 +112% +$7,878<br />

$5,479 $5,076 $7,422 $8,802 $9,104 +66% +$3,625<br />

White table $25,409 $27,318 $24,468 $20,145 $21,112 -17% -$4,246<br />

Red table $25,506 $26,304 $31,359 $36,533 $33,295 +31% +$8,224<br />

Black table $21,474 $26,659 $30,577 $33,624 $40,396 +88% +$18,180<br />

$24,657 $26,728 $28,859 $31,625 $29,425 +19% +$4,768<br />

SunRISE Mapping & Research <strong>Grape</strong> <strong>Industry</strong> <strong>Analysis</strong> Page 18 of 65

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