Wine Production Exceeding Demand

LATEST AUSTRALIAN BUSINESS NEWS

The record year of 2003-04 for the Australian wine and grape industry was surpassed in 2004-05 with increases in harvest, crush and wine production levels. There were 1,925,490 tonnes of grapes crushed in 2004-05, an increase of 8,252 tonnes on the record crop of the previous year. Beverage wine production was a record 1,422.8 million litres, an increase of 1.3% on 2003-04. There was continued growth in the export of Australian produced wine, which reached 669.7 million litres during 2004-05, an increase of 14.6%. The value of these exports increased 8.9%, to $2.7b. Domestic sales of Australian wine also continued to grow, up 3.1%, to 430.1 million litres.

Estimates from the Vineyards 2005 collection show that season 2005 produced another record harvest. The industry appears to have fully recovered from the drought conditions experienced in 2003. Hectares of vines being cultivated increased again, from the record area last year of 164,181 hectares, to 166,665 hectares in 2005. The total area of vines bearing grapes increased from 150,561 hectares to 153,204 hectares, a rise of 1.8%. The area of non-bearing grapes decreased slightly in 2005, down 1.2% to 13,462 hectares.

The net increase in area planted under vines for 2004-05 (derived from vines planted and vines lost during the year) was 1,823 hectares, which was 10.0% less than the net increase recorded in 2003-04 (2,025 hectares).

The wine industry has recorded a second bumper year in a row, with harvest, crush and wine production levels rising above 2003-04 levels.

Figures released by the Australian Bureau of Statistics last Wednesday (January 25th) showed 1,925,490 tonnes of grapes were crushed in 2004-05 - up 8,252 tonnes on the record crop of the previous year.

Beverage wine production was a record 1,422.8 million litres, an increase of 1.3 per cent on 2003-04.

Australian producers exported 669.7 million litres over the year - an increase of 14.6 per cent, with the value of wine exports rising 8.9 per cent to $2.7 billion.

Domestic sales of Australian wine were also strong, rising 3.1 per cent over the year, to 430.1 million litres.

Importers brought in 22.1 million litres valued at $188.2 million - up 23.5 per cent from 2003-04.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com

Australian Bank Buying Indiana Toll Road

LATEST AUSTRALIAN BUSINESS NEWS

The continuing expansion of Australia’s Macquarie Bank into infrastructure projects around the world continues. Macquarie, along with its Spanish partner Cintra have now been named as the preferred bidder for a further US toll road. After having purchased, in partnership, the Chicago Skyway, the bank now seems set to hold a 50% stake in the Indiana Toll Road.

Press reports indicate that the consortium has offered $US3.85billion for a 75 year concession over the toll road.

The Governor of Indiana has expressed surprise at the size of the bid. This comes as other US state legislatures debate the cost benefit to their constituents of selling off state owned assets, especially the concern that government control over tolls will be removed and that “monopoly” roads used widely by the community, will be subjected to substantial annual toll increases.

For information on this article, or on any other aspect of the Australian economy or business opportunities available, please email me.

David

david.taylor@agarcarlyon.com