News that the 2008 Australian winegrape harvest will deliver between 1.55 and 1.65 million tonnes might herald a change in the recent fortunes of the wine business in this country. Previous estimates put the crop at 1.22 million tonnes, while some earlier predictions had been below one million. Facing a perfect storm of drought-induced short vintages, increasing export demand, unfavourable exchange rates and a flat and inflationary domestic market, the wine industry needed a break. Until this news, several key overseas markets were unsure about Australia’s ability to maintain supply. The larger than expected crop had much to do with improved water allocations and active water trading in the warm inland districts. The red harvest is forecast to be up by 20-25% on last year, while white yields are expected to be similar to 2007.
