Australian Wines to Become More Expensive

We've been blessed with some great values from Australia, but that's not going to last much longer.

Australia's Herald Sun newspaper reports, "It's official; the long-standing grape glut that has eroded the wine industry's profits is nearing an end."

It's a simple supply and demand issue. They had huge harvests 2003-2005, but this year's crop was small, next year's crop is expected to be even smaller, and more small crops are predicted in 2009 and 2010. The Herald Sun cited environmental problems as a factor contributing to this year's small crops, and anyone who saw "An Inconvenient Truth" knows that those problems are only getting worse. Just ask the people who are buying up the chalky regions in the southern UK where they're planning to plant after the anticipated environmental changes take place in the Champagne region.

The good news is that the Australians think that the smaller crops will translate to increased quality of their wines, so the higher prices they're expecting from their export markets (like us) may be worth it - at least for premium products. Unfortunately, the value we've come to know in entry-mid range Australian wines is going to evaporate. Enjoy the Aussie while while you can, and start getting familiar with regions like Chile, Argentina, Spain and Portugal, all of which offer good value.