Murray Darling & Swan Hill Wine Grape Crush Report 2016 Vintage

Murray Darling & Swan Hill Wine Grape Crush Report 2016 Vintage

Table of contents Murray-Darling Swan Hill GI wine regions 3 Survey Data Methodology and Definitions 4 Section 1: Summary Data & Yearly Trends.... 5 Overview of vintage statistics 2016.. 6 Vintage summary 2016 vs 2015.... 7 Historical trends in production winery-grown vs purchased fruit 2004-2016..... 8 Historical crush from the Murray Darling-Swan Hill regions 2004-2016..... 9 Total purchased tonnes 2016 - white varieties..... 10 Total winery-grown tonnes 2016 - white varieties....... 11 Top ten purchased vs. winery-grown tonnes 2016 - white varieties.... 12 Total purchased tonnes 2016 - red varieties..... 13 Total winery-grown tonnes 2016 - red varieties 14 Top ten purchased vs. winery-grown tonnes 2016 - red varieties..... 15 Section 2: Wine Grape Value and Tonnage Data 2016... 16 Intake and price summary data by variety 2016 white varieties...... 17 Comparison between average price per tonne 2015 to 2016 white varieties. 18 Intake and price summary data by variety 2016 red varieties... 19 Comparison between average price per tonne 2015 to 2016 red varieties.... 20 Section 3: Survey respondents... 21 List of wineries that reported crushing grapes from Murray Darling-Swan Hill in 2016 22 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 2

Murray Darling - Swan Hill GI wine regions Geographical Indicators 3

Survey data methodology and definitions INTRODUCTION The Murray-Darling and Swan Hill Wine Grape Crush Report is produced by Wine Australia for Murray Valley Winegrowers (MVW), and is funded from grower levies paid to the Murray Valley Wine Grape Industry Development Committee (IDC). Data has been drawn from a survey of wineries conducted by Wine Australia. DATA QUALITY The 2016 vintage survey was jointly managed by Wine Australia and Murray Valley Winegrowers Inc. All data provided by the wineries has been aggregated. Under an agreement with wineries covering the provision of data, disaggregation is not permitted. It is not possible to provide data from individual wineries. COPYRIGHT This publication is copyright. Apart from fair dealing for the purpose of private study, research, criticism, or review, as permitted under the Copyright Act 1968, no part may be reproduced by any process without the written permission of Murray Valley Winegrowers Inc. Additional copies of the report are available from: www.mvwi.com.au or by contacting Murray Valley Winegrowers on 03 5021 3911 DISCLAIMER Every effort has been made to ensure the accuracy and integrity of the survey data and analysis reported in this document, no responsibility is taken for any errors or omissions. Murray Valley Winegrowers Inc and its employees do not guarantee that the publication is wholly appropriate for your particular purposes and therefore disclaims all liability for error, loss or other consequence which may arise from you relying on any information in this publication. DEFINITIONS Total 2016 Tonnes Total tonnes of grapes purchased in the Murray Darling/ Swan Hill regions and processed either in these regions or elsewhere. All wineries in Australia known to source fruit from Murray Darling/ Swan Hill vineyards were included in the survey collection process. Grapes The total tonnes of grapes purchased from independent grape growers. Winery Grown Grapes The total tonnes harvested from winery-owned vineyards. Tonnes as a Percentage of Total This statistic is calculated by dividing the tonnes purchased from growers by the total tonnes crushed. It indicates the proportion of grapes purchased from independent growers. Total Value of Grapes Total value of each variety purchased has been provided by the winery. Average Purchase Price An average purchase cost per tonne for each variety is calculated by dividing the total value of purchased grapes by the total tonnes of purchased grapes. Total Value of Winery Grown Grapes Winery Grown value is estimated using the average value per variety of purchased grapes multiplied by the reported winery-grown tonnes. Total Value of All Grapes The sum of the Total Purchase Value of fruit from independent growers and the Total Value of winery-grown grapes. Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 4

Section 1: Summary Data and Yearly Trends 5

Overview of vintage statistics 2016 The total wine grape harvest from the Murray Valley and Swan Hill region in 2016 was 368,098 tonnes, 4% less than the 381,732 tonnes harvested in 2015. Of the 368,098 tonnes, 237,678 tonnes were purchased from independent growers and 130,419 tonnes were harvested and crushed by wineries from their own vineyards. The crush of purchased fruit was down by 19% while the crush from winery-owned vineyards was up by 35% (see page 7). This can be attributed primarily to the sale of a major vineyard in the region, where the fruit was predominantly kept for processing in 2016 rather than sold as grapes as was the case with the previous owners. However, the proportion of winery-owned fruit in the Murray Valley crush has increased from around 10% in 2004 to 35% in 2016 (see page 8). The total value of 2016 winegrapes purchased from independent growers in Murray Darling-Swan Hill declined 10% or $8 million from $82 million in 2015 to $74 million. However, the average purchase price of most varieties increased, with Shiraz up by $31 to $320 per tonne, Cabernet Sauvignon up by $36 to $331, Chardonnay up by $60 to $283 and Riesling up by $140 to $436 per tonne (see pages 18 and 20). The average purchase price for reds increased from $297 in 2015 to $329 per tonne and for whites it increased from $281 last year to $299 per tonne this year (pages 17 and 19). Chardonnay remains the dominant white variety, increasing its share to 53% of purchased white fruit, with Sauvignon Blanc second with 14% of purchases and Muscat Gordo Blanco third with 10% (page 10). For winery-grown fruit, Chardonnay contributed 34%, with Pinot Gris second at 19% and Sauvignon Blanc third at 14% (page 11). Shiraz 48%, Cabernet Sauvignon 30% and Merlot 14% remain the three major red wine grape varieties contributing 91% of the total red wine purchases and 74% of winery grown fruit in 2016 (pages 13 and 14). At a glance summary Total crush was down by 4% to 368,000 tonnes compared with 382,000 tonnes in 2015 Total crush has reduced for three consecutive years after record in 2013 tonnes comprised 65% of the total crush and winery-grown fruit 35% Winery-grown share of crush has tripled since 2004 Top three whites: Chardonnay, Sauvignon Blanc and Pinot Gris accounted for 72% of the total white crush Top three reds: Shiraz, Cabernet Sauvignon and Merlot accounted for 86% of the total red crush Value of the total crush was up by $7 million (6%) White varieties made up 55% (by value) of the total crush Overall average price increased from $290 to $320 per tonne Average prices for major varieties generally increased: Shiraz up 11% Cabernet Sauvignon up 12% Merlot up 9% Chardonnay up 27% Sauvignon Blanc up 9% Muscat Gordo Blanco was down 15% and Pinot Gris down 8%. Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 6

Vintage summary 2016 vs 2015 2016 Vintage Total Winery Grown Tonnes Total Tonnes Total Crush Total Value of fruit Total Value of Crush Variety Percentage of Total Value Variety Percentage of Total Crush Tonnes as % of Total Value as % of Total White 82,390 136,952 219,342 $40,950,535 $68,153,801 55% 60% 62% 62% Red 48,030 100,726 148,756 $33,160,064 $49,579,031 45% 40% 68% 68% Total Crush 130,419 237,678 368,098 $74,110,599 $117,732,832 100% 100% 65% 65% 2015 Vintage Total Winery Grown Tonnes Total Tonnes Total Crush Total Value of fruit Total Value of Crush Variety Percentage of Total Value Variety Percentage of Total Crush Tonnes as % of Total Value as % of Total White 61,903 169,669 231,572 $47,717,924 $65,801,755 60% 61% 73% 73% Red 34,428 115,733 150,160 $34,371,700 $44,754,148 40% 39% 77% 77% Total Crush 96,330 285,402 381,732 $82,089,624 $110,555,903 100% 100% 75% 74% Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 7

Tonnes crushed Historical trends in production winery grown vs purchased fruit 2004-2016 Winery Grown 500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Winery Grown 38626 43347 54323 52000 49000 68000 60000 55000 46757 84714 83240 96330 130419 357425 399282 361614 303389 316211 307323 268147 225806 272781 373900 330387 285402 237678 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 8

Tonnes Historical crush from the Murray Darling -Swan Hill regions 2004-2016 500000 450000 400000 Average crush 2004-2016 350000 300000 250000 200000 150000 100000 50000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total crush 396051 442630 415937 355389 365211 375323 328147 280806 319538 458614 413627 381732 368098 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 9

Total purchased tonnes 2016 white varieties WHITES (top 10) (Tonnes) Chardonnay 72,623 Sauvignon Blanc 18,677 Muscat Gordo Blanco 13,167 Moscato Giallo 1% Semillon 4% Muscat a Petit Grains Blanc Viognier 1% 1% Prosecco 0% Other whites 1% Pinot Gris 11,763 Colombard 9,515 Colombard 7% Semillon 5,795 Moscato Giallo 1,469 Viognier 1,176 Pinot Gris 8% Muscat a Petit Grains Blanc 824 Prosecco 654 Other Whites 1,394 Muscat Gordo Blanco 10% Chardonnay 53% TOTAL Whites 136,952 Other whites summary (Tonnes) Riesling 349 Sauvignon Blanc 14% Vermentino 292 Sultana 282 Verdelho 116 Traminer 114 Fiano 82 Chenin Blanc 43 Muscadelle 10 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 10

Total winery-grown tonnes 2016 white varieties WHITES (top 10) Own grown (Tonnes) Chardonnay 28,180 Pinot Gris 15,320 Sauvignon Blanc 11,623 Semillon 6,352 Colombard 4,666 Muscat Gordo Blanco 4,418 Canada Muscat 2,161 Fiano 1,689 Muscat a Petit Grains Blanc 1,512 Crouchen 1,204 Other Whites 5,266 TOTAL Whites 82,390 Other whites summary Own grown (Tonnes) Riesling 1,105 Verdelho 832 Viognier 720 Prosecco 690 Vermentino 601 Chenin Blanc 171 Moscato Giallo 133 Taminga 12 Others 1,002 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 11

Tonnes Top ten purchased vs winery-grown tonnes 2016 - white varieties 70,000 60,000 Winery grown WHITES (top 10) (tonnes) Winery grown (tonnes) Chardonnay 72,623 28,180 Sauvignon Blanc 18,677 11,623 Muscat Gordo Blanco 13,167 4,418 Pinot Gris 11,763 15,320 50,000 Colombard 9,515 4,666 Semillon 5,795 6,352 Moscato Giallo 1,469 133 40,000 Viognier 1,176 720 Muscat a Petit Grains Blanc 824 1512 Prosecco 654 690 30,000 20,000 10,000 - Chardonnay Sauvignon Blanc Muscat Gordo Blanco Pinot Gris Colombard Semillon Moscato Giallo Viognier Muscat a Petit Grains Blanc Prosecco Murray Darling & Swan Hill - Wine Grape Crush Report 2015Vintage 12

Total purchased tonnes 2016 red varieties REDS (top 10) (Tonnes) Shiraz 48,095 Cabernet Sauvignon 30,120 Merlot 14,177 Pinot Noir 3,781 Petit Verdot 1,041 Tempranillo 807 Malbec 533 Durif 364 Ruby Cabernet 335 Sangiovese 326 Other Reds 1,147 TOTAL Reds 100,726 Other reds summary (Tonnes) Grenache 260 Cienna 257 Nero d Avola 240 Muscat a petit grains rouge 181 Black Muscat 88 Lambrusco 71 Sagrantino 42 Tannat 10 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 13

Total winery-grown tonnes 2016 red varieties REDS (top 10) Winery grown (Tonnes) Shiraz 14,696 Merlot 12,597 Cabernet Sauvignon 8,470 Ruby Cabernet 3,800 Tempranillo 2,315 Pinot Noir 2,234 Cienna 1,232 Petit Verdot 1,004 Sangiovese 298 Malbec 241 Other Reds 1,144 TOTAL Reds 48,030 Other reds summary Winery grown (Tonnes) Graciano 196 Dolcetto 158 Sagrantino 133 Grenache 94 Lambrusco 93 Montepulciano 86 Mataro 86 Tarrango 81 Nebbiolo 59 Others 158 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 14

Tonnes Top ten purchased vs winery-grown tonnes 2016 - red varieties 50,000 45,000 Winery grown REDS (top 10) (tonnes) Winery grown (tonnes) Shiraz 48,095 14,696 Cabernet Sauvignon 30,120 8,470 40,000 Merlot 14,177 12,597 Pinot Noir 3,781 2,234 Petit Verdot 1,041 1,004 35,000 Tempranillo 807 2,315 Malbec 533 241 30,000 Durif 364 0 Ruby Cabernet 335 3,800 Sangiovese 326 298 25,000 20,000 15,000 10,000 5,000 - Shiraz Cabernet Sauvignon Merlot Pinot Noir Petit Verdot Tempranillo Malbec Durif Ruby Cabernet Sangiovese Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 15

Section 2: Wine Grape Value and Tonnage Data 2016 16

Intake and price summary data by variety 2016 white varieties Variety Grape Summary Winery 2016 Total 2015 Summary Average Purchase Price Winery Grown Tonnes Tonnes as % of Total Whites Average Purchase Price Tonnes as % of Total Whites Tonnes Value of Fruit Total Tonnes Total Value Total Tonnes Canada Muscat - $0 2,161 2,161 $646,036 1% $338 1,871 1% Chardonnay 72,623 $20,526,294 $283 28,180 100,803 $28,491,216 46% $223 106,793 46% Colombard 9,515 $2,129,300 $224 4,666 14,181 $3,173,470 6% $203 17,428 8% Crouchen - $0 1,204 1,204 $359,943 1% $175 1,629 1% Fiano 82 $35,471 $431 1,689 1,771 $763,947 1% $405 1,016 0% Moscato Giallo 1,469 $390,554 $266 133 1,601 $425,855 1% 0% Muscat a Petit Grains Blanc 824 $260,973 $317 1,512 2,335 $740,129 1% $288 4,718 2% Muscat Gordo Blanco 13,167 $3,039,814 $231 4,418 17,585 $4,059,699 8% $271 20,601 9% Pinot Gris 11,763 $5,699,398 $485 15,320 27,083 $13,122,356 12% $530 32,329 14% Prosecco 654 $312,399 $477 690 1,344 $641,548 1% $445 415 0% Riesling 349 $152,137 $436 1,105 1,454 $633,336 1% $296 1,856 1% Sauvignon Blanc 18,677 $6,491,567 $348 11,623 30,300 $10,531,485 14% $319 26,765 12% Semillon 5,795 $1,272,585 $220 6,352 12,147 $2,667,438 6% $214 12,353 5% Sultana 282 $60,617 $215-282 $60,617 0% $218 297 0% Verdelho 116 $38,367 $332 832 948 $314,811 0% $355 856 0% Vermentino 292 $109,099 $373 601 893 $333,501 0% $318 673 0% Viognier 1,178 $356,174 $302 720 1,898 $573,941 1% $276 1,401 1% Other whites 167 $75,785 $454 1,186 1,352 $614,472 1% 570 0% Total 136,952 $40,950,535 $299 82,390 219,342 $68,153,801 100% $281 231,571 100% Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 17

Price change 2016-2015 Comparison between average price per tonne 2015 to 2016 white varieties $150 $100 $50 $- -$50 -$100 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 18

Intake and price summary data by variety 2016 red varieties Variety Grape Summary Winery 2016 Total 2015 Summary Tonnes Value of Fruit Average Purchase Price Winery Grown Tonnes Total Tonnes Total Value Tonnes as % of Total Reds Average Purchase Price Total Tonnes Tonnes as % of Total Reds Cabernet Sauvignon 30,120 $9,977,914 $331 8,470 38,590 $12,783,644 26% $295 42,502 28% Cienna 257 $173,266 $674 1,232 1,489 $1,004,195 1% $753 744 0% Durif 364 $170,657 $469-364 $170,657 0% $406 276 0% Grenache 260 $73,484 $283 94 354 $100,158 0% $281 386 0% Malbec 533 $293,227 $550 241 774 $425,579 1% $513 481 0% Merlot 14,177 $4,543,683 $321 12,597 26,773 $8,580,913 18% $293 27,385 18% Nero D'Avola 240 $107,883 $450 43 283 $127,193 0% $456 289 0% Petit Verdot 1,041 $329,041 $316 1,004 2,045 $646,374 1% $299 2,033 1% Pinot Noir 3,781 $1,305,853 $345 2,234 6,015 $2,077,468 4% $330 5,409 4% Ruby Cabernet 335 $100,724 $300 3,800 4,135 $1,242,036 3% $287 2,286 2% Sangiovese 326 $138,124 $423 298 624 $264,068 0% $287 1,479 1% Shiraz 48,095 $15,398,288 $320 14,696 62,791 $20,103,598 42% $289 63,819 43% Tempranillo 807 $319,126 $396 2,315 3,122 $1,234,971 2% $394 911 1% Other reds 391 $228,794 $586 1,007 1,397 $818,176 1% 2,160 1% Total 100,726 $33,160,064 $329 48,030 148,756 $49,579,031 100% $297 150,160 100% Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 19

Change in average price per tonne Comparison between average price per tonne 2015 to 2016 red varieties $150 $100 $50 $- -$50 -$100 Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 20

Section 3: Survey respondents 21

Thank you to the following wineries that reported crushing grapes from Murray Darling-Swan Hill in 2016 Accolade Wines Australia Limited Andrew Peace Wines Agnew Wines Pty Limited Australian Vintage Limited Austwine Viticulture Pty Ltd Berton Vineyards Pty Ltd Best s Wines Proprietary Limited Brown Brothers Milawa Vineyard Casella Wines Pty. Limited Chalmers Wines Australia Pty Ltd CM & RH Pfeiffer De Bortoli Wines Pty Limited Dorrien Estate Winery Pty Ltd Duxton Viticulture Idyll Wine Co Pty Ltd Kingston Estate Wines Pty Ltd Limestone Coast Wines Pty Ltd Pernod Ricard Winemakers Pty Ltd Qualia Wine Services Pty Ltd Tahbilk Proprietary Limited TTF Balthazar Barossa Trust TTF John Mitchell Family Trust TTF Mical Nominees Unit Trust Treasury Wine Estates Trentham Estate Pty Ltd TWG Australia Pty Ltd Victorian Alps Wine Company Pty Ltd Wingara Wine Group Pty Ltd Yalumba Zilzie Wines Pty Ltd Murray Darling & Swan Hill - Wine Grape Crush Report 2016 Vintage 22