Shocking scenes are unfolding in one of ‘s top wine regions, where desperate growers are bulldozing once-valuable vineyards.
In the Riverina region of NSW, grapevines are being ripped from the ground as the market is overwhelmed by a massive oversupply of wine that simply isn’t selling.
Known for its Mediterranean-style climate and top-quality Chardonnay, Sémillon and Shiraz, the Riverina is now at the heart of a crisis threatening ‘s $45 billion wine industry.
A perfect storm of falling demand, particularly among younger ns, and crippling Chinese tariffs which were only lifted in March 2024 has pushed the industry to breaking point, with industry leaders now calling it an ‘oversupply crisis’.
Jeremy Cass, CEO of Riverina Winegrape Growers (RWG), said many growers have been forced to operate at massive losses for four years, particularly those producing red varieties.
‘Our industry is in a real crisis due to the oversupply caused by the Chinese tariffs that were imposed after Scott Morrison challenged China on COVID yet support from the government has been sorely lacking,’ he told Daily Mail .
Some growers are out of pocket up to $150,000 a year, Mr Cass said, just to stay afloat, and many are now ripping up vineyards that cost up to $35,000 per hectare to plant.
RWG chair Bruno Brombal said growers need to start making ‘difficult but necessary decisions’ now to avoid another season of devastating financial loss.
‘Whether the decision is to reduce plantings, exit part of the business, or adapt in other ways, growers need to be having these conversations now before they’re locked into another season of loss,’ Mr Brombal said.
While demand from China is showing signs of recovery, many inland growers have been left behind as consumers both overseas and at home chase trendier alternatives like seltzers, spirits, and so-called ‘functional beverages.’
Wine now ranks last among preferred drinks for younger Aussies, with Gen Z turning away from alcohol altogether in favour of ‘sober-curious’ lifestyles and health-conscious choices.
Even major wineries are scrambling to adapt, experimenting with wine cocktails, liquor-wine blends, and low-alcohol options to stay relevant.
‘n Grape and Wine has put in a prebudget submission to government two years in a row for $85 million, $30 million of which is earmarked to help some growers transfer to other crops,’ he said.
‘This has been ignored but we see government spend $70 million a year for 10 years so that we can get an NRL team from Papua New Guinea.’
is home to 2,156 wineries and more than 6,000 grape growers, supporting nearly 165,000 jobs.
But with red wine fetching just 50 cents per bladder in some cases, the bottom has fallen out.
Globally, wine consumption has dropped by 3.1 billion litres in five years – a shift that’s rocked even the world’s most established producers.