Advertisement

Is there too much wine? Why some winemakers are ripping up vines and ‘don’t see a future in the wine industry’

  • The world’s wine industry is feeling the effects of changing tastes, increased production costs, oversupply and depressed prices
  • Some winemakers who are unable to make a profit are ripping up vines and replacing them with alternative crops, or returning land to its natural state

Reading Time:4 minutes
Why you can trust SCMP
Vines ripped from the barren soil of grape grower Tony Townsend’s vineyard in South Australia are burned. Around the world winemakers are cutting back on inventories, and ripping up vines and replacing them because wine production is no longer profitable. Photo: Tony Townsend

Australian grape grower Tony Townsend destroyed half of his 14-hectare (35-acre) vineyard last year.

Advertisement

The fields were healthy and vibrant, but he estimates he would have lost about A$35,000 (US$23,000) harvesting them. While a heatwave is holding him back from ripping out the rest, he plans to finish the job once the weather cools – losing all the vines he’s tended for the past decade.

“I enjoyed being in the wine industry, but it was just economically unviable to continue this way,” said Townsend from his farm, where a pile of discarded plants is waiting to be burned.

He lives in Riverland, a region in South Australia that produces about a third of the nation’s crush. Since 2020, a convergence of Covid-fuelled cost increases and Chinese tariffs has pushed up supply and depressed prices in the country.

Grape grower Tony Townsend’s vineyard in Riverland, South Australia. Townsend destroyed half of his vineyard last year. Photo: Tony Townsend
Grape grower Tony Townsend’s vineyard in Riverland, South Australia. Townsend destroyed half of his vineyard last year. Photo: Tony Townsend

While Townsend was never fully reliant on grape growing for his income and works part-time in wine and food tourism, not every farmer has been so lucky.

Advertisement
Advertisement