Wine makers blame world market

"WINE maker" is a dirty word in Merbein, not just among grape growers, but even on the street.

Growers feel they are being victimised by corporate wine makers, as grape prices hit unviable levels. Chardonnay prices have slumped from $1200 a tonne four years ago, to less than $290 a tonne for contracted fruit this season.

But the operators of one of the district's biggest wineries and vineyards argue the global marketplace is to blame.

Australian Vintage Limited production and wine supply general manager Neil McGuigan said there was little he or any other wine maker could do to remedy the global glut and financial crisis that have forced down wine prices.

Mr McGuigan said Australia had lost many of the competitive advantages it held over the rest of the world in the early to mid 1990s, which had led to wine becoming a commodity.

"(Back) then the exchange rate was 50-60 cents US to the Australian dollar and we took the UK and US markets by storm," Mr McGuigan said.

"Then we all got enthused and planted like there was going to be no tomorrow."

But, Mr McGuigan said, the rest of the world started using Australian wine makers and their technology, especially in South America.

So what's the solution?

"There has to be rationalisation of wineries and vineyards," Mr McGuigan said.