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farm gate value $/hectare<br />
5.5.2 Farm gate value of wine grape production<br />
Figure 23 shows the change in farm gate value of wine production from 1997 to 2014. The farm<br />
gate values (return $/hectare) have been calculated using <strong>Grape</strong> Crush Survey crop values (Figure<br />
22) <strong>and</strong> hectares of bearing wine grape plantings from SunRISE crop mapping (Figure 11).<br />
Farm gate value ($/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 over time <strong>and</strong> have a significant impact on net income. Costs of<br />
production from 2002 to 2011 have been reported by WGGA (2008), Retallack (2010) <strong>and</strong><br />
Retallack (2012). In<strong>for</strong>mation on costs of production can also be sourced from relevant industry<br />
groups.<br />
Farm gate value of wine production has declined by 37% since 1997; from $11,300 per hectare in<br />
1997 to $7,100 per hectare in 2014.<br />
Figure 23: Change in farm gate value ($/hectare) of wine grapes from 1997 to 2014<br />
$20,000<br />
1997 2003 2006 2009 2014<br />
white varieties<br />
$15,000<br />
red varieties<br />
$10,000<br />
Average of red<br />
<strong>and</strong> white<br />
varieties.<br />
$5,000<br />
Wine grapes 1997 2003 2006 2009 2014<br />
Change 1997-2014<br />
% $/ha<br />
White $10,127 $12,257 $9,058 $7,089 $7,528 - 26% - $2,599<br />
Red $18,917 $9,180 $6,975 $6,901 $6,650 - 65% - $12,267<br />
$/hectare $11,300 $10,658 $8,007 $6,998 $7,100 - 37% - $4,200<br />
SunRISE Mapping & Research <strong>Grape</strong> <strong>Industry</strong> <strong>Analysis</strong> Page 35 of 65
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