SA growers rely on other income

Grape harvesting. (AP Photo/ Winfried Rothermel) Source: Herald Sun

ALMOST three-quarters of SA grape growers rely on other income sources to survive.

A January survey of more than 1000 independent growers on the 2010 vintage, showed 26 per cent of growers counted grapes as their main source of income while 70 per cent had to rely partially or totally on other income.

Growers along the Southern Fleurieu Peninsula, in the Clare and Barossa valleys, and the Adelaide Hills were most likely to source their main income from elsewhere, the survey showed.

"Thirty-five per cent of growers in the Riverland identified grapes as their main source of income but that's because other options aren't there," Wine Grape Council executive officer Peter Hackworth said.

The alternative was to seek jobs elsewhere, particularly in health care and mining sectors, to supplement income, with those in regions closer to Adelaide at an advantage.

The move to another income stems from more than half of respondents not making a profit from grapes since 2008 and only one-third reporting a profit in 2010 - consistent with data from peak wine body Wine Australia, Mr Hackworth said.

Most losses came from white grapes with average returns in the Barossa, Eden and Clare valleys, McLaren Vale, Padthaway and the Riverland below the cost of production. Red varieties were more profitable with only Riverland and Adelaide Plains growers seeing average losses on red varieties, the survey said.

 "The survey highlights the complexity of the situation facing the industry, that is, only a third of respondents made a profit from winegrapes in 2010 yet vine removals remain very low," Mr Hackworth said.

The survey projected about 3 per cent of SA vineyards had been removed from production in the past three years, well below the wine industry forecast of 20 per cent forecast to restore grape supply to balance.

Ten per cent of growers said they would like to sell their vineyards.

The Council plans to release a progress report on the 2011 SA vintage in two weeks.