The value of vineyards in one of the world’s best regarded wine regions, South Australia’s Riverland has tripled in the last few years as Australia continues to rapidly export wine to China. Australian wine exports to China grew by more than 50 per cent in the last financial year alone.
The value of vineyards in one of the world’s best regarded wine regions, South Australia’s Riverland has tripled in the last few years as Australia continues to rapidly export wine to China. Australian wine exports to China grew by more than 50 per cent in the last financial year alone.
The region is coming off decades of drought and an oversupply of grapes in the region, however that oversupply has been soaked up by not only China but the steady deamnd for product. Realtors say that potential buyers are now willing to pay up to $40,000 per hectare for vines. Stephen Strachan, director of industry advisor group Gaetjens Langley said three years ago a similar property couldn’t get $10,000.
The lower Australain dollar and Brexit uncertainty has also seen buyers from the UK choosing to invest in the region.
Riverland vineyard consultant, Ashley Ratcliff said “They feel the Riverland is a good place to invest. They are bypassing places like the Barossa and McLaren Vale and coming to the Riverland. Being someone that’s grown up in the Barossa, I think the Riverland’s a real jewel and a great place to invest and other people are now seeing that.”
“In context, they are doing well compared to where the industry has been for the last ten or so years,” Mr Strachan said. Riverland vineyard consultant, Ashley Ratcliff, said the remarkable turnaround has boosted farmer confidence.
“The increase in demand is seeing an increase in grape prices, which is seeing an increase in capital value of property,” Mr Ratcliff said. “That’s obviously flowing on to people selling agricultural equipment and people are willing to spend more on shops.”
“What that’s done is the surplus of wine we had in Australia has essentially disappeared. “Now we are in a situation where the supply demand is a lot healthier and on the back of that higher prices are being paid to growers,” Strachan said.
About the Riverland
The Riverland offers a diverse array of wineries both small and large, located from Blanchetown in the west to Renmark at the eastern end of the region, over 150km apart. The Riverland produces up to 30% of Australia’s annual crush, and the majority of wineries are of a grand scale with high quality and quantity production.
The largest winery produces as much as 200,000 tonnes each year, while the smallest winery produces 60 tonnes. The overall region produces 400,000 tonnes annually. Each winery offers its own unique and innovative varieties and blends, all using highly innovative, expansive and precision technology. With a warm and temperate climate, wine is produced to exacting and consistent standards, every time. The Riverland fruit is home to a large number of Australia’s most popular wine brands.
Source: ABC