Grape Industry Analysis for Investment and Redevelopment

Red
White
return ($/tonne)
hectares planted (bearing
and non bearing)
return ($/tonne)
hectares planted (bearing and
non bearing)
5.4.3 Pricing and wine grape planting trends
High prices for red wine grapes in the late 1990s coincides with a surge in planting of red wine
grape varieties in the Murray Valley between 1997 and 2003. Hectares peaked in 2006 although
prices were very low by 2006.
Similarly, an increase in the average price for white wine grapes between 1997 and 2003 was
followed by an increase in white wine grape plantings that continued to 2006. Wine grape
planted areas have retracted since 2006 coinciding with stable but low average prices.
Figure 21:
Trends in the planted hectares of Murray Valley wine grapes as prices fluctuate
$900
1997 2003 2006 2009 2014
14,000
12,000
$600
$300
$443
$591
$369
$341
$297
10,000
8,000
6,000
4,000
2,000
$0
$900
$811
-
14,000
12,000
$600
$586
10,000
8,000
$300
$379
$407
$334
6,000
4,000
2,000
$0
1997 2003 2006 2009 2014
-
Change 1997-
2014
Hectares 10,407 11,246 12,877 11,709 9,572 - 835 ha
Price ($/t) $ 443 $ 591 $ 369 $ 341 $ 297 -$ 146
Hectares 3,323 10,444 10,923 10,216 9,178 + 5,855 ha
Price ($/t) $ 811 $ 586 $ 379 $ 407 $ 334 -$ 477
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