<WIRE> Australian Farmers Uproot Millions of Vines Amid Wine Overflow

In order to remedy the fierce overproduction that has plummeted grape prices, threatening the livelihoods of growers and wine producers, Australian farmers are tearing up millions of vines.

The wine industry in Australia, the world’s fifth largest exporter of wine, has been hit hard due to a decrease in global wine consumption.

The pressure has compounded due to a diminishing demand for the cheaper reds that are Australia’s main product, especially in their previously steady growth market, China.

With upwards of two billion litres - approximately two years' worth of production - in storage by mid-2023, growers are struggling, with growers like fourth-generation farmer James Cremasco finding themselves faced with dwindling returns on their efforts.

Around two-thirds of Australia’s grapes are grown in irrigated inland areas like Griffith.

However, as wine manufacturers like Treasury Wines (ASX:TWE) shift their focus to pricier bottles that are selling more successfully, areas around Griffith are dealing with a surplus of grapes going unused.

In a once thriving industry, vineyard owners are witnessing the conclusion of an era.

According to Wine Australia, red wine has been hit hardest with grape prices falling to an average of $200 a ton, the lowest in decades, drastically dropping from about $433 in 2020.

Eager for the market to balance and prices to rise, farmers like Jeremy Cass, head of Riverina Winegrape Growers, believe that nearly a quarter of the vines in areas like Griffith need to be extracted.

This climactic change would result in the eradication of over 20 million vines across 30,000 acres, or about 8% of Australia’s total vineyard area.

Treasury Wines (ASX:TWE) is a globally recognized wine producer that offers a diverse range of renowned brands cultivated from premiere vineyard estates to an extensive range of wines.

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