As grape harvest kicks off across the state, Wine Australia export figures released this week show the white grape wine’s export figure surged by 11 per cent to 163 million litres last year.

The once most sought-after shiraz dropped to second spot with 152 million litres and cabernet sauvignon third at 85 million litres, as export figures to China with its greater demand for reds dropped another 14 per cent last year.

Riverland Wine executive officer Lyndall Rowe said the industry is facing a double whammy of challenges as Australian drinkers are also increasingly opting for light and white wine styles.

SA wineries have told growers they already have too much red wine in their tanks and, as harvest begins, grape growers are tackling the daunting decision whether to sell shiraz and cabernet bunches below cost or to leave them to wither on vines.

Riverland growers started picking chardonnay and prosecco grapes this week. The region produces 60 per cent of the state’s grapes and 32 per cent of the national annual crush, its grapes predominantly red.

Rowe said growers are not sitting back waiting for markets to turn as the region also deals with the fall out from River Murray flooding. Water inundated some vineyards but also led to less cellar door visits and impacted income for those growers working side jobs in tourism.

She said $150,000 is being spent on building a new blueprint for the Riverland industry to survive and thrive over the next 10 years with work underway to cement a plan with the Primary Industries and Regions Department.

Riverland Wine’s about 900 members also backed a Riverland Rising project last year that will see the region fight for its own space on the global stage.

Red wine grape growers in the Riverland are being dealt another blow as Chardonnay takes over as top export wine. Pictured is Jim Markeas at Mallee Estate. Photo: Riverland Wine

Rowe said it was time to shed a long-held bulk grape reputation and announce “loud and proud” that the region is stepping up alongside globally recognised brands like the Barossa or Coonawarra.

A creative agency is now tasked with developing a new brand concept and personality, while local wineries are attending ProWine in Germany as a region along with Vinexpo in Singapore during May.

“We now have wineries producing fantastic wines and they are loudly and proudly putting Riverland on their label,” Rowe said.

Wine Australia figures show the total value of national wine exports last year was down four per cent to $1.94 billion, volume was up slightly by one per cent to 623 million with the average value down five per cent to $3.12 per litre.

Top export destinations are all down in value: the United States was down three per cent to $390 million, the United Kingdom by 18 per cent to $373 million, and China another 14 per cent to $192 million.

A bright point is Canada with a 14 per cent increase to $188 million.

The Wine Australia report said diversification and intensification efforts of Australian wine exporters were evident in the figures.

Exporters shipped wine to 120 destinations during the period from January 1 last year to December 31, up from 112 the previous year and the highest since the start of the COVID-19 pandemic.

Growth in the value of exports to Southeast Asia continued through the period with a 16 per cent rise in value to $305 million.

But overall it was another tough year for Australian wine exporters, with rising inflation, business costs and interest rates impacting margins, and the report said it is anticipated this will continue in 2023.

Wine Australia Manager, Market Insights Peter Bailey said an increase in unpackaged wine exports is an indication of improvements to the significant shipping challenges in some markets, which have been a factor since 2021.

He pointed to an increase in the value of exports to Thailand, Malaysia, and Canada offset declines in value to Singapore, Hong Kong, and the US.

“However, decreased shipments to the United Kingdom (UK) in the second half of 2022, were greater than the increase in overall value to other markets,” he said.

“This drop was anticipated, as Australia experienced two years of elevated shipments as a result of Brexit deadlines and increased demand for wine in the off-trade (supermarkets and bottle shops) during the COVID-19 pandemic when many on-trade businesses were closed.”

Overall, European markets are experiencing tough operating conditions.

Exports declined to nearly every European destination during 2022, with the largest contributor to the decrease, besides the UK, being Germany (down 22 per cent in value to $38 million), followed by the Netherlands (down 19 per cent to $29 million) and Denmark (down 13 per cent to $37 million).