Ben Mallett
Barossa Herald

Local wine grape growers are struggling. The combination of drought, increasing costs of production and a drop in the grape price are conspiring to make life difficult for local producers.

Stephanie Promnitz, a grower based in Eden Valley said wineries were no longer paying growers what they used to.

“The cost of growing wine has gone up, while the prices paid by wineries have gone down,” she said.

“Today for example the price paid for chardonnay grapes is around half of what it was 15 years ago.”

Anthony Scholz, Vigneron at Ebenezer agreed saying the industry was feeling the effects of a world-wide oversupply of grapes.

He said returns to Barossa growers were currently well below those enjoyed a decade ago.

“Prices are still being affected by fall out from the global financial crisis,” he said. “That’s caused our overseas markets to shrink and buyers to remain cautious about purchasing wine.”

Local producers say in many instances wineries are purchasing less fruit than they normally would or taking the usual amount at a lower price.

In addition to a lower return for their grapes, growers are also being hit hard by steep hikes in the cost of chemicals, fertilizers and water.

“There is a major shortage of water for growers generally in the Barossa,” Ms Promnitz said.

As a result of the long-term drought affecting South Australia the government has cut water allocations available to many growers.

“Allocations have been cut dramatically in recent years and most are still well below 100%.” Ms Promnitz said.

Grape growers are paid by the tonne of fruit produced.

Less water means a smaller crop yield which directly affects a grower’s bottom line.

Elise Heyes, from Barossa Grape and Wine Association said the industry had been faced with a range of challenges in recent years.

She said local growers were not immune from global influences affecting the industry.

“We’re very optimistic for the future of the industry. It’s important growers know their markets to get the best outcomes.”

Get a Free $25 Wine Voucher Plus: Win $5,000 & Weekly Penfolds Grange prizes