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VALUE CHAIN INTELLIGENCE BACKGROUND Value chain intelligence is data interpretation by mrsnoble

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VALUE CHAIN INTELLIGENCE

BACKGROUND Value chain intelligence is data, interpretation and analysis of data and other information along the full value chain, including but not limited to supply and demand, industry and market data and information. At the September 2008 SAWIC meeting, in the context of discussing the supply and demand situation, it was commented that if the wine industry has a full and holistic view of what the demand potential is, that by definition, will regulate production. The question was raised as to what is the wine industry is doing to make sure that all key players have relevant up-to-date information so they can make sound business decisions. DISCUSSION A short summary of the major industry sponsored collections of wine grape supply data is attached to this paper. Under the existing National Utilisation Survey program, which is coordinated by AWBC and project funded by GWRDC, each State and Territory produces a detailed report containing wine grape crush information. The Phylloxera and Grape Industry Board of South Australia is responsible for completing the South Australian report. These regional surveys allow winegrape growers and wine producers to assess supply and demand for wine grapes at the regional level. The regional data is aggregated into the annual Australian Winegrape Crush Survey and Trend Analysis to form a fundamental economic supply / demand planning tool for the Australian wine industry. The form that the National Utilisation Survey should take in the future is currently being considered by AWBC and GWRDC. It is understood that among a number of things, AWBC is considering whether it should focus more on market intelligence and less on supply side analysis. ABS also conducts an annual Vineyard Survey (ABS ref. 1329) on behalf of GWRDC. The survey collects varietal data on the main grape varieties grown in Australia, including area planted, production of grapes, intended plantings in the coming season, and area of varieties removed or grafted. The information is collected from vineyard owners in the ABS Agricultural Survey and released in

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October each year. Once again the continued form of the Vineyard Survey is being considered. No firm decision has been made by GWRDC, AWBC and ABS and Council will be kept informed of developments in this issue.

RECOMMENDATION For information only. For further information please contact Simon Treloar Phone 8226 3517 PIRSA Grape & Wine

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Summary of Major Industry Sponsored Collections of Wine Grape Supply Data
Grape growing AWBC Preliminary Vintage Assessment A cross section of grape growers and winemakers provide feedback on the progress of the vintage. Major companies also provide information to cross check production estimates. The survey takes place during vintage and is reported in February – April each year. The assessment provides preliminary vintage estimates and season assessment at a national level throughout the vintage season prior to release of the WFA Vintage report in May and the ABS vintage around November. It provides early assessment and supply estimates for media, financial community and industry. AWBC National Utilisation Survey Each state produces a detailed report containing wine grape crush information. The regional surveys provide accurate information on the wine grape harvest in the various states to both wine grape growers and wineries. A summary of these regional figures is then aggregated into the national report The National Utilisation Project is coordinated by AWBC on behalf of GWRDC. The aim of the national project is to obtain market information on wine grape crush statistics for the whole of Australia. In doing this • Actual tonnes of varieties purchased and grown by wineries for the current vintage • The wineries preferred crush of each variety for the current vintage • The total purchase price, highest, lowest, and weighted average price paid for each variety for the current vintage • Estimates of tonnages to be purchased and grown by wineries for the next 3-5 years • Assessment of tonnages wineries would prefer to receive over the next 3-5 years. ABS 1329 Vineyard Survey The ABS Vineyards Survey is conducted annually on behalf of GWRDC and released in October each year. The information that is collected includes: • • • Area planted (split between bearing and non-bearing areas) Production of grapes (for winemaking, drying or other uses) Intended plantings in the coming season
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Area of varieties removed or grafted.

Information is collected from vineyard owners by the Agricultural Survey. The report is released in October each year. Australian Winegrape Outlook The Australian Winegrape Outlook is prepared for Wine Grape Growers Australia by McGrath-Kerr Business Consultants Pty Ltd with GWRDC funding. The Outlook provides an overview of the winegrape supply/demand position within the Australian wine industry and, in particular, the outlook for the industry over a rolling 4 year period. It draws on statistics and market analysis provided by regional, State and National industry bodies, ABS, AWBC, ABS and ABARE. Crush WFA Winegrape Intake Survey The WFA Winegrape Intake Survey provides an early estimate of the quantity of winegrapes by variety processed by winemakers for the vintage. This can be added to the same information collected for the small winemakers in the Wine Statistics collection to give a reasonable 'total' crush for Australia. This number has become the industry standard. ABS 1329 - Australian Grape Crush & Wine Production The ABS grape crush information is taken from nearly 400 wineries crushing 50 tonnes of grapes or more. The early issue contains the first release of grape crush and beverage wine production data. A more detailed analysis of wine industry production, sales and stocks is released in late November SA Specific Phylloxera and Grape Industry Board of SA Pricing and Utilisation Survey Each year the Phylloxera and Grape Industry Board publishes the South Australian Winegrape Utilisation and Pricing Survey. The survey includes:
• • • • •

Regional vintage statistics by variety State summary statistics by variety Average purchase value per tonne for each variety, and total value of the crush in each region Planting details for the state and each region Historical trends and comparisons with previous vintages

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Projections of supply and demand over a five year forecast period

The 2008 PGIBSA Pricing and Utilisation Survey did not include production forecasting, which was previously compiled via the Board’s vineyard information and by consulting growers about expected yields. Instead ABARE forecasts were used in the survey report. Wine Production 1329 ABS Wine and Spirit Production This provides information on the contribution of large winemakers for industry in general and is fed into the National Winegrape Outlook Conference which reconciles industry inputs and outputs. All winemakers selling more then 250,000 litres of wine per annum are included in the monthly survey. Annual collection sent to each establishment of Winemakers crushing more than 400 tonnes of grapes per year. Information is obtained on red and white grapes crushed, wine production and sales, inventories held, spirit used and spirit produced. Some State and regional data is available 8504 ABS Sales of Australian wine by Winemakers Domestic sales of Australian produced wine is obtained from 97 winemaking enterprises with sales of 250,000 litres or more in either of the previous two financial years. These account for approximately 92% of total wine sales. All sales data are collected on an Australia-wide basis only and state figures are therefore not available.

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