PYRENEES and Grampians growers have welcomed an increase in the price of grapes in 2016.
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The average price paid for grapes grew by 14 per cent to $526 per tonne.
It is the highest average price for grapes since 2009.
Wine Victoria chair and Mount Langi Ghiran Winery grower Damien Sheehan said there was a long term benefit to the industry thanks to the price rise.
“It puts the industry in a much stronger position,” he said.
“It indicates that supply is now meeting demand.”
“I think it is the first sign of the correction we have been waiting for but no one is getting ahead of themselves just yet.”
Mr Sheehan said the increase in price was due to increased demand for Australian grapes in overseas markets.
“Because of an increase in export markets there is kick there so we are starting to see the demand side pick up,” he said.
The price rise will see growers make more money for each tonne they sell.
He also said it would not affect wine prices, although some producers might find it more difficult to maintain their profitability.
Wine Australia chief executive Andreas Clark said it was encouraging to hear reports of outstanding grape quality translated into an increase in the average price.
“In the last 12 months we’ve seen Australian wine exports grow to $2.11 billion and the strongest growth has been in wines of $10 or more per litre,” she said.
“This increased enthusiasm for our fine wines internationally is helping to support a stronger demand for premium fruit in Australia.
“The positivity for Australian fine wine is resonating within our key export markets.”
Mr Sheehan said the quality of grapes in the Grampians and Pyrenees region meant it was in a strong position.
“To an extent it is a stronger region because of the quality of the grape they produce,” he said,
“That is not to say they haven’t seen low prices.
“It is the style of shiraz produced here that over the last decade has been in demand with buyers.”