Australian farmers rip out millions of vines amid wine glut
By Peter Hobson
GRIFFITH, Australia (Reuters) -Millions of vines are being destroyed in Australia and tens of millions more must be pulled up to rein in overproduction that has crushed grape prices and threatens the livelihoods of growers and wine makers.
Falling consumption of wine worldwide has hit Australia particularly hard as demand shrinks fastest for the cheaper reds that are its biggest product, and in China, the market it has relied on for growth until recent years.
The world's fifth largest exporter of wine had more than two billion litres, or about two years' worth of production, in storage in mid-2023, the most recent figures show, and some is spoiling as owners rush to dispose of it at any price.
«There's only so long we can go on growing a crop and losing money on it,» said fourth-generation grower James Cremasco, as he watched clanking yellow excavators strip out rows of vines his grandfather planted near the southeastern town of Griffith.
About two-thirds of Australia's wine grapes are grown in irrigated inland areas such as Griffith, its landscape shaped by vine-growing techniques brought by Italian migrants arriving around the 1950s.
As major wine makers such as Treasury Wines and Carlyle Group (NASDAQ:CG)'s Accolade Wines refocus on more expensive bottles that are selling better, the areas around Griffith are struggling, with unpicked grapes shrivelling on vines.
«It feels like an era is ending,» said Andrew Calabria, a third-generation vineyard owner and wine maker at Calabria Wines.
«It's hard for growers to look out the back window and see a pile of dirt instead of vines that have been there as long as they've known.»
Nearby, the remains of 1.1 million vines that once comprised one of
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