Wine Industry News, the very informed communication vehicle of McGrath-Kerr Business Consultants, says that with the expected lower return on investment from growing grapes for sale to wineries (down from 25% to 15%), plus the recent decline in grape prices, there is less incentive than in previous years for the establishment of vineyards for investment purposes. It says the number of wineries prepared to sign contracts prior to planting and that the rate of planting in Australia has virtually halved. To meet anticipated export demand, wineries may be forced to find new means of encouraging growers and investors to take the plunge.
