Smallest harvest in Australia for 7 years

It looks like Australia’s wine glut could finally be coming to an end if the Australian Wine and Brandy Corporation’s predictions come true.  Seasonal conditions including frost, drought and early harvest rain, have reduced yields in Australia by around 35% this year. The total harvest for 2007 is expected to add up to 1.35 million tonnes – the smallest harvest since 2000 and a third smaller than the 2006 harvest.

If current estimates are right, the industry will produce 400m litres less wine than last year. According to Lawrie Stanford, the corporation’s information and analysis manager, the harsh 2007 conditions are likely to have carryover effects in the 2008 harvest.  This, coupled with reduced irrigation water availability in the warm-inland districts, means that yields are likely to be reduced in 2008 as well. Although some grapegrowers will suffer as a result of these smaller crops, the good news for the industry is that a return to supply-demand balance is on the cards for 2008 or 2009.