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10. The Next Five Years
FIVE YEAR PLAN 1997 - 2001
The thrust of the five years 1997 to 2001 will be to accelerate penetration of export markets, to initiate domestic market development, and to increase Australia's relative competitiveness through an upgrade of grape supply quality, a reduction in costs, and an improvement in Government policy support.
Industry aspects of the plan include:
- Australian exports will capture 8.3% of the UK wine market, and will more than double their share of the US market to 2%. Exports to Continental Europe will also grow significantly, especially to Germany, Sweden and Switzerland.
- Growth in domestic wine sales with an anticipated per capita consumption of 18.9 litres/head by 2001.
- Aggregate winery stocks are expected to grow to exceed 1 billion litres by 2001 requiring substantial increases in working capital.
- Winegrape supply is projected to reach 1 million tonnes by 2001, with the strongest growth in premium varietals up from 485,000 tonnes in 1996 to 715,000 tonnes in 2001.
- The composition of winery requirements will change, with a decline in demand for non-premium and multi-purpose grapes, a softening demand for lower quality premium white varietals and continued strong demand for premium red varietals.
- Wineries will benefit from lower input costs as grape prices adjust to normal levels.
- Investment priority will shift from vineyards to processing capacity, storage and working capital to utilise increased grape supplies from the 1990's vineyard planting surge.