My article in this weekend’s Australian turns on Dr Richard Smart’s interesting – if not downright quixotic – look at the level of Australia’s wine production, suggesting the surplus problem is not due to surplus vineyards/grape harvests, but underselling. He argues that if Australia had retained its 2008/2009 market share we would need 2.6 billion litres to satisfy demand.
In Tony Keys’ KROW Report No. 28 (22 June) he makes the interesting observation that the 2010 production of 1.56 million tonnes, equivalent to 1.07 billion litres is slightly under annual sales of 1.1 to 1.2 billion litres. All well and good, he says, but how much overhand is there from 2009, and possibly before? That is indeed a question, but (given Keys’ eagle eyes and propensity for cold showers) there is another question: how much of the 1.1 to 1.2 billion litres has been sold with a profit margin, no matter how slender?