WA; Red wine glut in WA

AAP General News (Australia)
12-10-2003
WA; Red wine glut in WA

By Holly Nott

PERTH, Dec 10 AAP - West Australian winemakers have just over a month to find a market
for millions of litres of red wine.

An over-supply of red grapes had led to a glut of red wine on the market, with large
quantities still sitting in storage tanks that will soon be needed for the 2004 vintage.

West Australian Wine Industry Association chief executive officer Sarah Dent said there
had been a 165 per cent increase in the area planted with vines in WA in the four years
to June 2002.

"Figures show that the majority of vines planted were red varieties as opposed to white,"

Ms Dent said.

"What we're seeing as a result of that expansion is a much greater focus on needing
to export because of the limited growth in the domestic market.

"As a small to medium winery, it is very difficult to access international markets
when you are competing with countries like Chile, Argentina and South Africa.

"As a result of that we estimate there are about five million litres of red wine that
have not been sold that are sitting in tanks in WA, and we are actively pursuing opportunities
to sell that wine ... before the start of the 2004 vintage in late January."

Ms Dent said some winemakers faced financial ruin if the markets were not found in time.

She stopped short of saying they would have to dump the wine, stating "that would be
a decision for the individual wineries".

"I wouldn't use the word dumping, but the reality is they do have to find a home for
that wine because some of those storage tanks will be needed for the 2004 vintage. They
are going to have to find somewhere to put that wine."

Ms Dent said conversely, there was a shortage of white wine grapes in WA and prices
had escalated, especially for Chardonnay.

"There is a great demand for premium white varieties."

AAP hn/jnb

KEYWORD: WINE

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