| The Australian wine industry has an annual turnover of more than $3.5 billion, accounting for 7% of the value of the Australian food and beverage market. The Victorian wine industry has an annual turnover of about $1 3 billion, approximately 23% of national wine industry turnover.
The wine manufacturing industry is Victoria’s fifth largest food sector, directly employing over 2,600 people in grape growing and winemaking. This largest segment of Victoria’s highly diverse beverage industry has operations in most regions of Victoria.
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Victoria’s wine industry
employment, 1999/2000
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The Growers
During 2004/05 over 38,764 hectares were planted to wine production. During the same period 219 million litres of wine were produced. More than 2,900 vineyards supply 560 Victorian wine manufacturers and interstate wineries.
Location is a key determinant of product varieties, style, quality and production quantity in the Victorian wine industry. Across the State, different soil types and climatic variations enable an exceptionally wide range of quality wine to be produced.
Victoria's Wine Growing Regions
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In the north and north-west (around Mildura, Swan Hill and Shepparton), high acreage, flat land, relatively high summer temperatures and access to irrigation permits large-scale vineyard developments with a high level of mechanisation and consequent reduction in the cost of labour for pruning and harvesting. These conditions have encouraged the development of economies of scale for production of bulk wines. The industry is using innovative technology to increase the quality of its bulk wines.
Southern districts, in contrast, are characterised by small holdings that reflect the higher cost of land, hilly country and cool-climate viticulture.
Manufacturing
The key to efficient processing of high-quality wine in the northern and southern regions is to undertake crushing close to primary production. Transporting grapes over long distances is detrimental to the quality of the wine produced.
However, as second-stage processing and distribution is not affected by such considerations, there is significant opportunity to establish blending, bottling and distribution facilities in areas that provide efficient transport and export facilitation.
Growth in production
The Victorian wine industry has significantly increased its production over the past decade. There has also been growth in the diversity and quality of wines produced in
Victoria.
Investment
In recent years, the Victorian wine industry has expanded rapidly with an estimated
AU$700m in new investment.
Exports
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Value of Victoria’s wine exports, 1991–2005
Source: Australian Bureau of statistics/Tradedata |
Winery tourism is an important part of the business mix for Victoria’s wineries, particularly those within one to three hours drive from Melbourne. The estimated economic value of Victoria’s winery tourism for 2004 was $493 million. An estimated 5,700 people are currently employed by Victorian wineries including cellar door, restaurants/food service and accommodation. The average Victorian winery trip incorporates visits to 3.8 wineries, resulting in expenditure of $148 at the cellar door and $63 on
food.
Victorian wine exports represent about 6% of all Victorian processed food exports. About 70% of exported Victorian wine is red wine.
Victoria's Wine Export Markets 2002-03
Source: Australian Bureau of
statistics/Tradedata |
Victoria’s Wine Export Products
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