Mitigation, adaptation or innovation?

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1 Mitigation, adaptation or innovation? Mardi #newclimate The AWRI

2 Mitigation, adaptation or innovation? Mitigation Adaptation

3 Extension and outreach

4 Why is the wine industry affected by climate change? Variety Smoke Nutrition Disease Temperature Light exposure Water status

5 Why is the wine industry affected by climate change? + =

6 The wine challenge Expectation Every time

7 The vineyard challenge

8 The business of wine

9 The grower perspective

10 Quality Temperature and wine quality Too COLD OPTIMUM Too HOT Sugar Unripe Unbalanced Consistent sugar levels Ripe flavours Balanced Acid retention Overripe Unbalanced Temperature Redrawn from Greg Jones

11 Temperature C Example: LSC Cabernet Sauvignon C (mean daily max) o n d j f m a Growing season months

12 Temperature C Example: LSC Cabernet Sauvignon C (mean daily max) (+ 3.3 C) o n d j f m a Growing season months

13 Temperature C Example: LSC Cabernet Sauvignon Est. 2 C Earlier harvest 29 C Higher temperature (mean daily max.) 27.2 C s o n d j f m a (+ 5.3 C) Growing season months

14 Heat waves yield & quality loss

15 Higher grape sugar and alcohol Average 12.4% Average 14.2% Nero d Avola Ethanol Ethanol Vermentino Montepulciano Lagrein

16 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Compressed growing season

17 Compressed growing season In the vineyard: Vigilance Logistics

18 Bushfires & smoke taint Major smoke events 2003, 06-07, 09, % loss of Victorian production Legal disputes Loss of fruit, wine, brand image & shelf space

19 Frost In-season Long-term

20 Wet seasons Photo: R Muhlack Photo: Jan O Connor in 5 queries received was related to wet weather

21 The climate change challenge

22 Market access

23 Trends from major customers Supplier scorecard Carbon labelling e- targets Code of conduct 2011 Supplier audits 2012 Ethical sourcing policies

24 Consumers are starting to consider what they can do to adapt to climate change... 70% Concerned about the increase in food prices 54% 54% Look for things to address and change in everyday life as a result of the challenges of climate change Think about what is acceptable and sustainable with respect to products, packaging and consumption Consumer perspectives of adaptation Lilly Lim-Camacho CSIRO 24

25 Adaptation scenarios for wine Scenario 1: Favourite Sauvignon Blanc temperature affected 30% Likely to purchase Sauv Blanc from another region 24% Likely to substitute another variety of wine EW (14%) Continue to purchase Sauv Blanc from the Adelaide Hills Consumer perspectives of adaptation Lilly Lim-Camacho CSIRO

26 Adaptation scenarios for wine Scenario 2: Award-winning Margaret River to Stanthorpe 56% Most likely to continue purchasing 21% Most likely to purchase a different type of wine instead $1.30 Price premium (likely because it is award winning) Consumer perspectives of adaptation Lilly Lim-Camacho CSIRO

27 Implications for the wine industry What are the opportunities for the wine industry? How will our key growth markets view the Australian wine industry s efforts towards climate change?

28 This project is supported by funding from the Australian #newclimate The AWRI

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