Barossa Valley Wine Region Incorporating Barossa Zone - other

Regional summary report 2008

Barossa Valley

Vintage overview

Vintage overview

Overview of vintage statistics

Despite below average winter and spring rainfall, good rains during budburst provided an exceptional start to the growing season that resulted in strong, early growth. Above average temperatures from August to November also meant that mostly frost-free conditions prevailed. Given the drier and hotter conditions, excellent growth continued, which advanced many of the vineyards’ normal flowering dates by approximately two weeks. The dry start also meant that supplementary irrigation began earlier and by the middle of December most of the canopies had completed their development with good balance, even on the deeper soils.

The harvest from the Barossa Valley (including Barossa zone – other) was 66,816 tonnes in 2008, a substantial recovery after the very low 2007 harvest of under 40,000 tonnes. The total value of grapes from the region more than doubled - from $45 million in 2007 to $91 million, and average purchase values showed a further increase despite the much higher tonnages. Shiraz increased by $200 per tonne and Cabernet Sauvignon by $300 per tonne, while even Chardonnay showed an increase in average purchase value against the trend in most regions.

There were no significant rain interruptions to vintage in the Barossa Valley with disease pressure for the entire season being extremely low. In early March there was a prolonged heat wave over a two week period that consistently pushed daily temperatures above 35°C. Careful management of irrigation and subsequent soil moisture through this period was an important factor in maintaining both yield and quality. Vintage commenced about three weeks earlier than normal, with the lower yielding blocks of Sauvignon Blanc first off the ranks in the third week of January. Many of the older premium red blocks were picked and in tank by late February. The unusually cool nights through this month provided for ideal ripening and harvesting conditions with most vineyards remaining in great shape despite the very dry conditions that they had been exposed to in the previous months. Overall wine quality for the 2008 vintage is regarded as excellent. Despite the March heat wave and the attention it attracted, 2008 was a slightly cooler vintage due to the earlier ripening and the unusually mild February weather. These conditions encouraged excellent colour, flavour and tannin development with varieties such as Shiraz showing great flavour vibrancy and richness. The 2008 season and vintage period also showed how well many growers adapted in an environment of extremes with the effective management of water even more critical throughout this period.

New plantings in the Barossa Valley in 2007 (including top-working and replacements) were 292 hectares – almost all Shiraz. This is 3% of the total area, well above the state average of 1% new planting and much higher than in 2006, when only 50 hectares were planted. The estimated production from the Barossa Valley for 2009 is around 87,000 tonnes – assuming a return to full potential. This would be equal to the region’s highest recorded crush (in 2004). The wineries’ committed intake is 75,000 tonnes, leaving only 12,000 tonnes (14%) uncontracted. The early indications of the season are that this production is unlikely to be achieved; therefore there will almost certainly be very little available fruit next vintage. In 2013, the estimated production is expected to remain at around the same level (88,000 tonnes), of which 57% (50,000 tonnes) is already under contract or winery grown fruit. This leaves an estimated 28,000 tonnes to be sold on the open market or signed up in the intervening period. However, across the state, even if growing conditions return to “normal”, there is expected to be little or no overall surplus compared with demand in 2013 (see State Summary section).

NB The Barossa Valley regional summary includes the Barossa zone – other (106 hectares).

Chris Rogers and Robin Nettelbeck Phylloxera and Grape Industry Board and Central Regional Committee

Phylloxera and Grape Industry Board of SA

SA Winegrape Utilisation and Pricing Survey 2008

October 2008

Barossa Valley

Variety Red winegrapes Cabernet Franc Cabernet Sauvignon Grenache Malbec Mataro Merlot Nebbiolo Petit Verdot Pinot Noir Sangiovese Shiraz Tempranillo Touriga Zinfandel Other red Total red winegrapes 1

2

Winegrape intake summary - vintage 2008

Tonnes purchased 102 5,844 3,096 71 554 2,617 18 142 382 206 25,586 238 38 39 237 39,172

Lowest Highest price1 price1 $600 $600 $100 $800 $750 $250

$1,500 $5,730 $8,000 $1,400 $8,000 $1,800

$800 $1,200 $600 $1,550 $700 $2,500 $250 $10,000 $1,500 $2,000 $1,200 $1,700 $1,000 $2,200 $750 $3,000

Total value purchased grapes $119,984 $7,769,651 $3,998,109 $72,009 $916,110 $2,624,331 $17,559 $143,719 $333,286 $247,676 $44,421,833 $427,528 $60,068 $63,196 250,782 $61,465,841

Calc avg. purch. value per Winery tonne grown fruit $1,174 $1,329 $1,291 $1,021 $1,652 $1,003 $958 $1,015 $872 $1,203 $1,736 $1,795 $1,572 $1,603 $1,057

57 1,681 736 51 290 513 38 20 114 15 5,106 12 15 16 44 8,708

Total crushed

Est total value ALL grapes

160 7,526 3,833 122 844 3,129 56 161 496 221 30,692 251 53 55 281 47,880

$187,469 $10,004,891 $4,948,862 $124,413 $1,394,501 $3,138,833 $53,789 $163,834 $432,391 $265,639 $53,286,399 $449,772 $83,419 $88,670 299,047 $74,921,928

Lowest and highest prices are only reported when there are at least three purchasers. Very low prices may relate to extremely small parcels of fruit or fruit delivered that was over the contract amount or penalised for other reasons. The estimated non-response rate for the Barossa Valley is 6%.

Phylloxera and Grape Industry Board of SA

SA Winegrape Utilisation and Pricing Survey 2008

August 2008

Barossa Valley

Variety White winegrapes Semillon Chardonnay Riesling Sauvignon Blanc Viognier Chenin Blanc Muscat a Petit Grains Blanc Muscat Gordo Blanco Colombard Muscadelle Traminer Verdelho Marsanne Pinot Gris Roussanne Other White Total white winegrapes Total all winegrapes2 1

2

Winegrape intake summary - vintage 2008

Tonnes purchased 6,287 4,174 2,618 1,087 415 302 220 113 61 28 58 41 7 23 11 34 15,478 54,649

Lowest Highest price1 price1 $250 $250 $250 $800 $600 $500 $650 $900

$1,900 $1,200 $3,000 $2,200 $2,250 $1,000 $1,200 $1,300

$250

$950

$1,000

$1,400

Total value purchased grapes $4,584,165 $3,565,730 $2,170,065 $1,313,985 $576,414 $200,218 $178,729 $116,748 $33,184 $15,220 $45,360 $36,936 $13,150 $25,016 $13,138 26,933 $12,914,991 $74,380,832

Calc avg. purch. value per Winery tonne grown fruit $729 $854 $829 $1,209 $1,387 $663 $812 $1,036 $547 $540 $788 $901 $2,002 $1,087 $1,200 $801

Total crushed

Est total value ALL grapes

555 1,083 1,275 189 84 17 55 0 0 31 0 0 26 2 7 134 3,458

6,842 5,257 3,892 1,276 500 319 275 113 61 59 58 41 32 25 18 167 18,936

$4,988,811 $4,491,044 $3,226,704 $1,542,316 $693,629 $211,527 $223,562 $116,748 $33,184 $32,137 $45,360 $36,936 $64,529 $27,625 $21,015 113,344 $15,868,470

12,166

66,816

$90,790,398

Lowest and highest prices are only reported when there are at least three purchasers. Very low prices may relate to extremely small parcels of fruit or fruit delivered that was over the contract amount or penalised for other reasons. The estimated non-response rate for the Barossa Valley is 6%.

Phylloxera and Grape Industry Board of SA

SA Winegrape Utilisation and Pricing Survey 2008

August 2008

Barossa Valley

Historical Weighted Average Price vs tonnes crushed

90000

2500

80000 Tonnes crushed

WAP - Shiraz

2000

70000

$ per tonne

1500 50000

40000

WAP - Chardonnay 1000

Tonnes crushed

60000

WAP - Cabernet Sauvignon

30000

WAP - Semillon

20000

500

10000

0

0 1993

1994

1995

Phylloxera and Grape Industry Board of SA

1996

1997

1998

1999

2000

2001

2002

2003

SA Winegrape Utilisation and Pricing Survey 2008

2004

2005

2006

2007

2008

August 2008

Barossa Valley

Current plantings by variety and year planted Current area in hectares

Variety Red winegrape Alicante Bouschet Cabernet Franc Cabernet Sauvignon Durif Grenache Malbec Mataro (Mourvedre) Merlot Nebbiolo Other red Petit Verdot Pinot Noir Sangiovese Shiraz Tempranillo Touriga Zinfandel Total red winegrapes White winegrapes Albarino Chardonnay Chenin Blanc Muscadelle (Tokay) Muscat Blanc (Frontignac) Other white Palomino Pedro Ximenes Riesling Sauvignon Blanc Semillon Viognier Total white winegrapes Unknown variety Total all varieties

% planted in 2007

Pre-2005

2005

2006

2007

Total area

9 34 1424 7 675 20 173 410 8 20 31 59 20 5173 37 13 12 8125

2 0 14 4 19 0 6 8 0 5 1 0 0 209 3 0 1 271

0 0 18 0 2 0 4 0 0 3 0 0 0 179 4 0 0 210

0 0 17 4 0 0 7 3 2 3 0 1 0 228 3 0 1 270

11 34 1474 15 697 21 190 421 10 31 32 60 20 5789 47 13 14 8877

0% 0% 1% 29% 0% 2% 4% 1% 16% 11% 0% 2% 0% 4% 7% 0% 6%

1 668 33 26 44 35 14 14 388 101 659 53 2035 46 10101

0 17 0 0 0 4 0 0 50 4 0 19 95 0 367

1 1 0 0 0 6 0 0 1 8 1 4 22 0 233

9 1 0 0 0 1 0 0 0 5 0 6 22 0 292

11 687 33 26 45 46 14 14 439 118 660 82 2175 46 10992

82% 0% 0% 0% 0% 2% 0% 1% 0% 4% 0% 8%

3%

1% 0% 3%

* Includes plantings in Barossa Zone - other (106 hectares) Phylloxera and Grape Industry Board of SA

SA Winegrape Utilisation and Pricing Survey 2008

August 2008

Barossa Valley

Estimated supply and committed intake 2009 - 2013 2009 Total committed intake2 Est Supply 1

Variety Red winegrapes Cabernet Franc Cabernet Sauvignon Grenache Malbec Mataro Merlot Nebbiolo Other red Petit Verdot Pinot Noir Sangiovese Shiraz Tempranillo Touriga Zinfandel Total red winegrapes White winegrapes Chardonnay Chenin Blanc Muscadelle Muscat a Petit Grains Blanc Other White Palomino Pinot Gris Riesling Sauvignon Blanc Semillon Traminer Verdelho Viognier Total white winegrapes Total all winegrapes

Available supply3 Est Supply 1

2011 Total committed intake2

Available supply3 Est Supply 1

Winery Contract grapes purchases

2013 Total committed intake2

Available supply3

Winery grapes

Contract purchases

363 9,979 4,987 85 991 3,926 36 464 199 643 176 39,974 149 85 113 62,169

54 2,330 1,110 67 456 662 28 55 31 112 20 6,912 22 17 15 11,891

137 6,530 3,949 90 621 3,194 17 265 183 314 197 26,552 268 40 52 42,408

172 1,120 0 0 0 70 0 145 0 218 0 6,511 0 27 45 7,870

299 9,206 4,696 113 1,012 3,692 42 589 191 670 169 36,549 164 108 95 57,595

54 2,343 1,222 70 512 711 38 57 30 112 35 7,100 33 41 22 12,380

137 5,593 3,441 90 618 2,609 17 265 183 317 197 22,459 305 40 19 36,291

109 1,269 33 0 0 371 0 268 0 241 0 6,990 0 27 55 8,924

299 9,239 4,796 113 1,093 3,699 42 659 202 691 169 39,596 199 108 113 61,016

54 2,320 1,293 70 515 724 38 58 30 154 35 7,271 33 41 24 12,660

108 5,014 2,790 75 462 1,953 0 265 136 151 161 19,048 309 35 20 30,526

137 1,905 713 0 116 1,021 3 337 36 387 0 13,277 0 32 69 17,831

8,460 280 141 444 279 126 81 5,055 1,513 8,030 122 50 741 25,322

1,385 21 32 84 121 102 8 1,466 261 763 0 0 93 4,336

4,686 226 40 259 199 14 59 2,674 1,791 6,220 0 61 557 16,786

2,389 33 69 102 133 10 13 914 0 1,046 122 0 91 4,199

8,100 310 142 391 298 102 352 5,347 1,784 7,702 129 46 834 25,536

1,475 21 33 85 131 102 8 1,552 261 755 0 0 106 4,530

4,286 213 51 291 201 14 96 1,571 1,919 5,408 0 19 640 14,710

2,339 76 58 16 114 0 247 2,223 0 1,539 129 27 88 6,296

8,238 315 142 401 320 102 814 5,452 2,064 7,734 129 46 918 26,675

1,502 21 33 138 138 102 8 1,552 261 755 0 0 106 4,616

3,023 213 30 284 233 0 69 1,252 1,909 4,406 0 19 617 12,055

3,713 81 80 0 103 0 737 2,647 0 2,573 129 27 195 10,004

87,491

16,228

59,194

12,069

83,131

16,910

51,001

15,220

87,691

17,276

42,581

27,835

1

Supply forecast produced by ABARE based on the ABS Vineyard Survey 2007

2

A raising factor of 1.06 has been applied to committed intake to allow for non-respondents

3

Where total committed intake is greater than estimated supply, the available supply is recorded as zero.

Phylloxera and Grape Industry Board of SA

SA Winegrape Utilisation and Pricing Survey 2008

Winery Contract grapes purchases

September 2008