Industry Analysis & Industry Trends
Grapes are more than just the sweet snacks in the fruit bowl. The Australian Grape Growing industry is highly dependent on the downstream Wine Manufacturing industry, with about 89% of production heading that way. The remaining output is sold as table grapes or dried grapes (e.g. sultanas). The industry is highly volatile due to significant uncertainty surrounding future conditions and its dependence on external variables. The main issues affecting the industry are water availability and rainfall, activity in the downstream markets and wine producers' use of wine grape contracts. In the five years through 2012-13, industry revenue is expected to decrease by an annualised 11.7% to total $1.06 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
Industry concentration in grape growing is low, with the four largest participants accounting for about 5.0% of industry revenue. This excludes enterprises such as Foster's Group Limited that are classified under the Wine Manufacturing industry. There are many small grape growers. Approximately 80% of all specialist grape growing establishments have less than 49 hectares. Only 1.6% of establishments have an operational value of more than $2.0 million. This indicates that the industry has a low degree of concentration.
Some of Australia's major wine companies have signalled an intention to reduce investment in vineyards due mainly to low margins and relatively little ability to differentiate... purchase to read more