Reconcile current grape and wine supply with current demand composition for the Wine Restructuring Action Agenda (WRAA) project

In November 2009 the Winemakers’ Federation of Australia, Wine Grape Growers’ Australia, the Australian Wine and Brandy Corporation and the Grape and Wine Research and Development Corporation released a statement on the outlook for the Australia Wine industry. The statement referred to work undertaken as part of the Wine Industry Restructuring Agenda (WRAA).

The statement declared that the “wine industry must confront the reality of oversupply”. “Structural surpluses of grapes and wine are now so large that they are causing long-term damage to our industry by devaluing the Australian brand, entrenching discounting, undermining profitability, and hampering our ability to pursue the vision and activities set out in the Directions to 2025 industry strategy”.

The statement continued “Comprehensive analysis and consultation suggests at least 20% of bearing vines in Australia are surplus to requirements, with few long term prospects. On cost of production alone, at least 17% of vineyard capacity is uneconomic.” One of the WRAA initiatives was to undertake additional analysis to provide further evidence and increase.