May 2006
Late Vintage Fails to Dampen Field Day
It may have looked like a circus but the 2006 Landmark Wine Industry Field Day on May 5 and 6 was an important event on the WA wine industry calendar.
Having missed 2005, the Field Day was well received by exhibitors, with a fully booked event that enjoyed a new circular lay-out at Cowaramup Oval.
While the rain was unkind, the
harvest still on and threats the
Western Derby would upstage
attention, many winemakers and viticulturalists still took the time to visit see out some of the latest
technologies and products on the market.
There are no confirmed dates set for 2007 as the Association will
assess all exhibitor feedback and will make recommendations to
improve future field days to ensure it remains a useful industry event.
Wine Leaders Seize Chance to Brief State Government
Accepting an invite to open the 2006 Landmark Wine Industry Field Day was the perfect opportunity for Minister for Agriculture and Food, Hon. Kim Chance to hear about local wine industry issues.
Mr Chance met with a number of key industry leaders on Friday, May 5 and was briefed on issues such as regional branding, the Wine Watch waste water project, Right to Farm and associated planning issues, wine equalisation tax and regional participation in State Government export promotion initiatives.
Mr Chance told exhibitors and visited gathered at the opening the Government would continue to focus on
developing food and beverage
exports, particularly to the Asian
markets, and his Department would maintain its activities in market
development to assist in securing higher value markets for exporters.
He also gave a commitment to work closely with industry groups such as the Margaret River Wine Industry
Association to lay future foundations.
Smoke Taint Research Draws Crowd at AWRA Forum
There was plenty of interest in the Agricultural Research Western
Australia Viticulture and Oenology
Research forum, attended by a
capacity crowd of 110 during the 2006 Landmark Wine Industry Field Day.
The day’s program was set by ARWA who identified the latest industry
research efforts and
developments. These included presentations on weevil management,
cover crops and the study of green characters in
Cabernet Sauvignon.
The afternoon sessions focused solely on the University of WA and Evans & Tate’s Chardonnay Project, now in its fourth year and beginning to show results.
Kristen Kennison’s update on the Department of Agriculture and Food, and Curtin University’s research into smoke taint in grapes and wine was particularly topical to Margaret River growers this year.
Research hopes to identify compounds in smoke, looking at the affect on grape characteristics, wine and vines. It will also investigate amelioration techniques after fire incidents.
With the field component completed earlier this year, the resulting wine will undergo
its sensory and chemical analysis in June this year, with studies continuing into 2008.
The five-year, $817,000 Chardonnay Project is a whole of system assessment of the factors affecting the production and sensory attributes of chardonnay wines in the Margaret River GI. The program has evolved to concentrate on precision viticulture, climate and weather, experimental winemaking and sensory sciences, and biostatistics and data mining.
A number of detailed findings were presented to the forum.
- Bridget Tighe
Association Adds Power to Chief Executive Role
The Margaret River Wine Industry Association can justifiably say it has power -- Nick Power to be precise.
Nick took on the role of Chief Executive Officer on May 2.
He brings a wealth of experience in
export, hospitality and natural
resource management amongst his many business skills.
Formally with the Kings Park Board and Water & Rivers Commission, Nick holds qualifications in accountancy, business management and social
sciences, giving him a good grounding to continue to develop the
strategic vision of the Association.
Most importantly, he enjoys a regular glass or two.
Former Baby Ward Delivers New Office Space for MRWIA
Association staff are enjoying a new locality, fresh with a coat of paint, clean carpets and a view of Tunbridge Street.
The Association is still housed within the Margaret River Community
Resource Centre but has moved into front office space (or as we like to say, from the Children’s Ward to the
Maternity Wing, given the Centre was the old Margaret River Hospital).
The move allows the Association to have street frontage for better promotion and closer parking access for members.
While the new office is a similar size to our former abode, increased
storage area will mean a tidier and more professional work environment.
Fire Prompts Positive Action Between CALM, Association
The Margaret River Wine Industry Association has agreed to act as a communications point between the Department of Conservation and Land Management and vineyards over prescribed burns.
After stating the preferred option that CALM defer its burns programme during vintage, the Association
offered to alert members to planned controlled burns, giving notice to all vineyards and not just those neighbouring prescribed burn areas.
This will give members time to contact CALM officers to discuss concerns, particularly if the burn is to take place while grapes are still ripening.
CALM also agreed to brief the Executive Committee when it finalised its Spring and Autumn burn programmes so any major issues can be immediately addressed.
Meanwhile, the Association and CALM will work together on a spatial map, detailing the locations of all vineyards in the Margaret River region, as creating this map will help when alerting vineyards of potential neighbouring hazards.
Tax Rebate Small Relief But Not Long Term Solution
The Federal Budget increase in the Wine Equalisation Tax rebate is indeed welcome news to small/ medium producers who are under particular stress at this time.
For this they have a small group of those producers to thank - they have worked strenuously behind the scenes to achieve this result.
A very significant problem still remains however and that is in relation to
industry consolidation.
This is because the rebate is available to only one winery and is lost if one winery acquires another. Lifting the rebate, as has occurred in the budget, only compounds that problem.
For many survival will only be achieved by amalgamation where economies of scale result - the rebate system is a serious impediment to that as one party loses the rebate.
It should be noted that the 2005 Deloitte Wine Industry Benchmarking Survey, released on May 4, revealed;
- 40% of Australian wineries are
trading at a loss.
- Australian wine export prices have plummeted 33 per cent since 2002.
- Wine makers have faced tough
conditions over the last couple of years, including an oversupply of grapes in Australia and overseas, which is keeping wine prices low.
- Wine margins had also come under pressure from the increased power of Australian and UK retailers who had consolidated.
- Wineries are especially being squeezed in export markets, which account for over 60 per cent of the industry’s output.
- The average selling price of
Australian wine exported in January 2006 was just $3.78 per litre.
- Financial problems of many
wineries are so deep-rooted that only industry-wide changes could save them.
“Given the maturity of the industry, real structural change is needed to reverse this price slump or much of this profit margin erosion will be permanent,” Deloitte partner Gary Doran said.
Cask wine still attracts WET at 40 cents per litre whilst a $20 bottle is taxed at 10 times that rate at $4.00 per litre.
The long term ramifications to the WA industry and other premium producing areas in Australia will be enormous until the tax structure is fixed on a basis that encourages and rewards excellence, rather than penalises that.
The budget initiative does not achieve this - it is however a very welcome short term relief to a long term problem.
Whilst not solving the problem many will welcome the temporary relief the budget initiative provides.
- Contributed
Association Covered With New Insurance Alliance
The Margaret River Wine Industry Association has announced a new 
alliance that gives it peace of mind, naming EBM Insurance Brokers as its preferred intermediary.
Established in 1975, EBM is the
largest privately owned insurance brokers in Australia.
Rick and Beth Cowan have 30 years insurance experience, and have
operated as a member of EBM
Insurance Brokers in Margaret River for eight years, concentrating on
viticulture and wine industry
contracts.
As a Gold level member of the
Association, Rick and Beth will return a percentage of their commission on new policies and renewals promoted through the MRWIA.
Rick and Beth can be contacted at rick@embinsurance.com.au or phone
9757 1331.
Message from the President
What an incredibly busy time we have had in the last month or so.
All reports indicate the Landmark 2006 Margaret River Wine Industry Field Day was a great success. We included a family element to the Field Day this year and it was received very well. Congratulations must go to all who contributed to make it a great event and recognition of the support Landmark gave by becoming naming rights sponsors. Without that
support we would not be able to bring to the industry this type of event.
Industry leaders and Executive members of the Margaret River Wine industry Association hosted Minister for Agriculture and Food, Hon. Kim Chance at a meeting at Leeuwin
Estate, which included robust
discussion on ndustry and regional related issues. Afterwards we shared lunch before the Minister
officially opened the Field Day.
The Minister’s attendance enables us to ensure the Margaret River
region is recognised for the contribution it makes to the wine industry and the state of WA.
Vintage 2006 will go down as one of the more challenging with whites looking sensational and the jury still out on reds.
The progress on the Margaret River Precinct for Wine Australia is progressing well with some exciting new concepts being developed.
- Ron Fraser
