SevenFifty Daily’s Post

Inside Allied Grape Growers: President, Jeff Bitter on Cooperative Advantages and Industry Stability. In this article International Bulk Wine & Spirits Show's editor Malvika Patel chats with Jeff on "Exploring the Advantages of a Grower-Owned Cooperative and Its Role in Sustaining the California Wine Industry". Check the full interview here.

Growers in the Riverland and Riverina are crying our for support, China still continues to be the whipping post and the centre of our issues of over supply but with 750 million litres sitting in tanks this is less about China and more about simply over supply . The Bulk wine market which we hear little of is also in real trouble , producers globally simply have to much finished wine in tank and this is not new vintages many Australian wine dates back to at least 2017 so this aint a new problem. Some would argue wine choices have shifted but the people that are shifting where never in the $10.00 Chuck market to start with so you cannot blames Gen Z for this one. The Australian wine industry or should I say many within the industry have been asleep at the wheel for many years, if you talk to local wine makers in the Hunter Valley numbers at cellar door are the lowest they have been for years , during mid week its the tumble weeds and dust that blows by not wine lovers . Ah yes it is winter but for me that is the best time to be a cellar door sure beats 35C and tasting red wines. We can't keep bailing our industries because they fail, there has to be a level of personal responsibility here, not withstanding this is an awful position for many growers to be in one has to ask how much they have and are contributing to their own demise. The smart growers & producers started to diversify many years ago, maybe we should be be growing grapes in regions that if we took the access to massive amounts of irrigated water that they would not simply exist, the environmental consequences are high. No easy answer here but it is evident a change of thinking and strategy direction is important before our great industry disappears .

The return to grape growers on the grapes they supply the big wineries in this region, on an average bottle of wine, roughly equates to the cost of the screw cap. Even less in casks. And we are being forced to take less. What will survive the upheaval in the Riverland Wine region? With major wineries on their knees, mid size wineries struggling to stay afloat, scaling down or facing receivership, small wineries are plugging along quietly despite the decline in tourism post covid and post flood. But what of the 700 plus growers who face a very uncertain future? Their viability is questionable. Will the 100 year 550 member Cooperative that was once the backbone of the Wine Industry in the Riverland survive? What about the services sector that has supported the industry for decades, in some cases over 100 years? More questions than answers...and answers are not coming from Industry leaders, Industry groups who are charged with representing the different segments of the industry or governments at all levels. The potential direct annual loss to the Riverland Wine grape sector will likely be in the region of $75 to $90 million on 2022 vintage figures plus the loss of tourism. Add in the potential loss to the services, water and retail sectors, this blows out to an estimated $140 million. Rural property prices will decrease an estimated 40%, mainly due to archaic zoning regulations. The population will decline only slowly as the cost of getting into a housing market closer to major centres is well beyond the reach of the majority. Cost of Federal and State government services and payments will increase an estimated 35% while local government services will reduce on the back initial higher rates then a marked drop in rates due to the fall in rateable values. Does anyone have any solutions or ideas? None are forth coming from Governments at other than paving the way for international Hedge Funds and Private Equity to keep plundering and bleeding the region dry. Constructive ideas welcomed...

I’ve little doubt the wine industry will get what they want, including getting the government to prioritise opening further export markets. That’s great for them, but this will take resources away from getting market access for fresh produce. The list of fresh produce that can’t be exported to Japan and China for example is a long and frustrating one, that includes avocados, blueberries, apples, mangos, multiple table grape and citrus varieties etc etc. Wine of course can be exported to China and Japan, but clearly the industry does not think that’s enough and are doing something about it. And to be sure, good luck to them, why wouldnt they aim for more. The fresh produce industry should perhaps take note and dare I say it learn a thing or two about how these things get done in reality. To paraphrase the great Australian band Skyhooks, ‘agri political is not a dirty word.’

Why are TX grape prices out of whack??? First day of (TX Wine) Market Mondays we take a look at the situation of the fruit market here in Texas. On our way to talk about TX Vineyard/AG real estate at the Best Ever Conference put on by fellow Texas Tech University alumnus Joe Fairless! Come say hello at our booth! Fruit prices range from ~$2,000-$3,500/ton on average in Texas, with most production coming from the Texas High Plains AVA where we are located (~65-80% depending on the year). 💰💰💰 Why is the price range so narrow compared to California ($300-5,000/ton)? Why is it at the higher end of price? Primary factors making the price range narrow are and high: 🍇 Most growers unable to have economies of scale to produce fruit at lower prices 🍇 Relatively few growers, with lots of fragmented small scale production 🍇 High volumes of cheap bulk West Coast wine suppress growth in lower cost segments in TX This presents a number of opportunities that Texas Vine Country and others can exploit! ➡️ Attack the “sweet spot” of $1,200-$2,000/ton fruit that is under served in TX, but not typically shipped in from out of state ($12-$20 bottles on the shelf) ➡️ Use economies of scale and low land/water costs to compete with West Coast wines that require trucking, have higher input costs, and higher regulation ➡️ Allow TX wineries to convert or add lower cost labels that are 100% Texas and achieve the margins required for distribution to make sense Eventually the market always wins out. With high costs of land, water, regulatory compliance, and tons of oversupply, things will swing the other way for the west coast. Texas wine market will mature quickly with low land, water, and regulatory costs, and a huge population with low saturation of wine brands and consumption levels. Exciting opportunities still to be had here in #TexasWine! #texasvineyards FermForge KEELEY HUBBARD TRACY HUBBARD Matt Moreland Mike Moreland

Here is our recent report on the wine and grape market.

The imbalance within Wine Australia with growers representation very much in the minority has been an increasing concern; those concerns have fallen on deaf ears. Now we have the hard work of the professional dedicated team at AWRI under attack. Increased influence by the major corporate wineries on political decision making, regardless of the party in power must be considered as the underlying cause. 'Industry Rationalisation', 'Increased Efficiencies' and 'Improved Utilisation of Limited Resources' are the buzz words utilised to justify the underlying causal mechanisms...but what of the causal effects on the long term sustainability of small growers and small cellar doors? The duplicity of Governments of all political persuasions bowing to corporate influence must be identified and prevented. https://lnkd.in/gcaZPr4M

An in depth look at B Lab and why wineries are looking at being a certified b corporation. Wineries like Hecht & Bannier, Symington Family Estates, and Madeira Wine Company, S.A. are part of this growing group. there are links to many other organizations like Regenerative Organic Alliance that Tablas Creek Vineyard is a part of and many others. Great read! #wine #sustainability #diversity #makingchange Why Are Wineries Around the World Seeking This Certification? https://lnkd.in/gwsdJEN6

Bordeaux Wines | Vins de Bordeaux - Guilty verdict reached in ‘landmark ruling’ for French viticulture The court ruled, the négociants breached the Egalim law on agricultural prices, which was established in 2018 to ensure that farmers can earn a liveable income. In light of the unprecedented legal case, French Prime Minister Gabriel Attal has announced that he intends to present a new law by this summer to “strengthen the Egalim system” in order to make prices fairer for farmers and growers #wine #wines #bordeaux #vin #vins #négoce #vinfrançais #vinsfrançais #frenchwine #frenchwines #winebusiness