Wine Industry Essay

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Introduction of the commodity and it’s industry
The Australian grape and wine industry is now facing the problem of sustaining profit in a flat and sometimes declining market due to the local and national problem of oversupply and reduction in price and value.
One of the key issues of this problem is the shift in global production and consumption, yet at the same time this has provided Australia with the opportunity for its previous rapid expansion, along with technological improvements. The long-term sustainability of the grape and wine industry is now uncertain and as it has been identified by key co-operations and non –government organizations have begun to take control of the issue before issue are highly exacerbated. By preparing and adapting to the supply chain and market requirements is key to moving forward. What is very important is considering Australia amongst the global market and meeting these needs domestically. The industry is required to adapt through flexibility and innovations to the global market in order to survive.
By selecting this chosen commodity I hope to further my knowledge in my field of study and work. I believe by having an open mind and being constantly exposed to new and old ideas personal progress can always be made. This will help me to understand the ever-changing industry and provide a solid foundation into my introduction to the Australian grape growing and wine industry.

Figure 1 The Hunter Valley wine region

System Scale
The Australian grape and wine industry can be dated back to 1788 with the first vines arriving with the First Fleet. Since then vines have spread through out Australia and now many different soil and climates have been found to suit certa...

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...r supermarkets controlling close 80% of sales and 9 wine producing companies making up 91% of production is causing strain within the industry and is problematic for the 600 producers and growers. The organisations abover in particular the WFA is impleting ideas situated around tax being imposed incorrectly but the ‘power’ lies in the major companies and not the lesser nine percent whom would benefit. These ideas include better planting strategies, reducing the power of the the major supermarket chains and reducing tax on growers but politically this is almost impossible to introduce. The current situation is projected as getting worse. A lot of people are going to suffer before the situation get better.
"We've been reacting, innovating, we've been finding new markets for years, now when you're in oversupply of course it's a race to the bottom." (David Lowe, WFA).

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