Australian wine seeks new markets amid falling sales(1)
A good harvest at Australia's vineyards this year is likely to add to the industry's woes
In the green foothills of the Brokenback mountain range in the Hunter Valley, the first buds of spring have begun to flower, but this is not likely to be a season of great cheer in one of Australia's oldest wine producing regions.
New figures show sales of Australian wine have fallen sharply as the industry faces its worst slowdown in a decade and a half.
Growers here talk of the "perfect storm" whipped up by a strong currency, oversupply and cautious consumers.
The slump will almost certainly be made worse by a bigger-than-expected harvest this year, which will add to an already bulging wine glut.
Worried shoppers are choosing to save rather than spend, and domestic wine sales have declined, while exports too have suffered.
The formidable Australian dollar that has sailed past parity with its American cousin is making local produce more expensive for drinkers overseas.
"I have never seen it like this before," explains Brian McGuigan, an indomitable industry veteran based in Pokolbin 160km (100 miles) north of Sydney, who began his winemaking adventure half a century ago.
"We had a period of up, up, up and away. During that period we developed lots of export markets and they were very successful for Australia.
"But we have been disadvantaged by our great mineral boom here which has pushed our dollar up and that has made it difficult for agricultural and manufactured products," he adds.
Price war
A short drive away through green hills and vineyards, Andrew Margan sits in the shade at his family-run business that has 50 sun-soaked acres of prestige vines near the small town of Broke.
He speaks of an industry of two distinct halves; one occupied by premium growers, the other by the mass producers that he accuses of driving down prices in the pursuit of quick profits.
