The perfect storm of drought, over-supply and a strong Australian dollar have caused almost half the grape growers in the Murray Valley region in Victoria to pack up and leave over the last five years. Today this region has just 670 grape growers, down from 1200 in 2005. Another 50 growers are expected to walk away in 2010, selling off their water rights in the process. Despite these conditions, and the low prices being paid for riverland grapes, Murray Valley Winegrowers chief executive Mark McKenzie says the region has achieved a balance between demand and supply and is poised to become Australia’s largest wine producing region. Lawrie Stanford, executive director of Wine Grape Growers Australia says that the last 12 months have seen the removal of around 6750 ha of vineyards in Australia, while another 13,000 hectares were left unharvested.
