Accolade To Pay Growers To Mothball

Accolade Wines is offering Riverland grapegrowers $1,000 per hectare to mothball their vineyards, according to a report by the ABC.

The company is also offering $1,250 per hectare to growers to switch from red grapes to white.

There is a glut of red winegrapes because of the collapse of the China market.

Derek Nicol, chief supply chain officer of Accolades Wines, said in a letter to the CCW that Riverland growers would likely receive about $150 per tonne for Shiraz and Cabernet in 2023.

This is way below the cost of production.

The letter also said there was more wine in storage across Australian than the Riverland produces in a single vintage “and that delivering more this season would likely push prices down further in 2024”.

Mr Nicol told WBM late today, “The Australian wine industry is currently facing a number of challenges.

“The most immediate issue for the Riverland is a surplus of red wine already in storage as we head towards the 2023 vintage.

“Significant change is needed to ensure the industry remains sustainable for all players – growers, winemakers and everyone else involved in the sector.”

Mr Nicol says Accolade Wines has been working “cooperatively” with CCW and growers for several months on short and longer-term solutions to these issues.

“These are also measures we’re applying to our own vineyards in the Riverland at Banrock Station,” he says.

“As part of our commitment to ensure a sustainable, future-proofed wine industry we have put forward a number of proposals, which we look forward to discussing with CCW and growers in coming weeks.”

“This is about more than just the upcoming vintage.

“That’s why we’ve offered measures like a generous removal support mechanism to help growers, because we know that getting material to replant takes time, and we’re happy to support growers through that.”

CCW chief executive Jim Godden said it was a “watershed year” with Riverland growers facing hard decisions.

He and Mr Nicol will be addressing growers in the Riverland next week.

“It’s expected to be quite emotive,” he says. “People are understandably upset.”

Mr Godden says a pressing issue is the lack of technical information about how best to mothball vineyards.

He says the CCW is developing a new wine export brand to add value to winegrapes.