Bitter Harvest - Landline - ABCPIP COURTNEY, PRESENTER: In the grape- growing regions of Victoria and South Australia the harvest is underway. It's been a season of mixed fortunes. The warm inland areas have coped with frosts, heatwaves, bushfires and recently heavy rain remarkably well. But the one thing growers are really struggling to weather are the rock- bottom grape prices. And as Kerry Staight reports, winemakers are also taking a big hit. LET'S MOVE SALAD BARS TO SCHOOLS. We donate salad bars to schools so that every child across our nation has daily access to fresh fruits and vegetables. China's Bo Xilai scandal has captured the world's attention since February—overshadowing even darker news: the apparent involvement of Chinese leaders in years of organ harvesting from political prisoners. Bitter Harvest is a Secondary quest in The Witcher 3. In it, you’ll protect a group of scavengers from undead monsters. It is also part of a group of quests that will grant you access to Redanian territory. About Victory Brewing Company. Victory Brewing Company is a craft brewery headquartered in Downingtown, PA. Founded by childhood friends, Bill Covaleski and Ron Barchet, Victory officially opened its doors in February of 1996. KERRY STAIGHT, REPORTER: Vintage at Robinvale in north- east Victoria looks picture perfect. But the mood in many harvesters is dark because the mounds of fruit are selling dirt cheap. BRIAN ENGLEFIELD, MURRAY VALLEY WINEGROWERS: They're demoralised. I wouldn't suggest at this stage they've given up. They've been worn down to a point where they feel isolated, like they've been cast adrift. It's not a good space for growers to be in. KERRY STAIGHT: After prices improved a little last year, many struggling growers thought there may be a light at the end of the tunnel, but those hopes have been dashed. BRIAN ENGLEFIELD: Prices this year are probably somewhere in the order of about a third to 4. We could see upwards of 2. KERRY STAIGHT: This is the last crop Brian Englefield plans to grow. Bitter Harvest is a 1963 British dramatic film directed by Peter Graham Scott and starring Janet Munro and John Stride, about a young girl who rejects marriage to become a kept woman and high-priced prostitute. Ralph and Cheryl Broetje rely on roughly 1,000 seasonal workers every year to grow and pack more than 6 million boxes of apples on their farm along the Snake River in eastern Washington. It’s a custom they’ve. Unlike many, he has the water to continue for some time, but he's not prepared to watch his assets lose value any longer. So, after 4. 0 years in the industry, the 6. Murray Valley property on the market, a property he had planned to pass on to son Adrian and his young family. BRIAN ENGLEFIELD: Strangely enough, it was an easy decision to make, because I've always had a philosophy that you can't live on loyalty and you can't eat dignity. KERRY STAIGHT: There are 6,2. Australia, almost 5. Out of that 6,2. 00, what proportion would be profitable? LAWRIE STANFORD, WINE GRAPE GROWERS AUSTRALIA: OK. My way of answering that is to say that on average, none of them. That's what our industry's statistics indicate. But something like 2. KERRY STAIGHT: Growers hurting the most this season are in the warm inland areas of the Riverland in SA, Victoria's Murray Valley and the NSW Riverina. Chardonnay has taken the biggest hit. Do you think the prices are going to go lower? LAWRIE STANFORD: It's hard to imagine. They can't and people can't hang on forever. So, no, something has to be done about that and it's got to happen soon. KERRY STAIGHT: Why have the prices dropped off more than the industry expected this year? PAUL EVANS, WINEMAKERS' FEDERATION OF AUSTRALIA: The most common driver for this is the increase in inventory levels which we now see creeping back up to historic highs. KERRY STAIGHT: The Winemakers' Federation says at last count there were more than 1. Australia- wide, around 1. The Murray Valley Winegrowers' Group questions the figures. BRIAN ENGLEFIELD: Going into the 2. So we really don't have any certainty around inventory other than believing what the wineries are telling us. KERRY STAIGHT: Brian Englefield says it's not just what's in the tanks that's lowering the value of the loads coming off vineyards, but unfair pricing tactics used by some wineries. His growers group is now taking those concerns to the Australian Competition and Consumer Commission, accusing five wine companies of predatory pricing. The three biggest - Treasury Estates, Pernod Ricard and Accolade - declined a request to be part of this Landline story. Another major player, family- owned Kingston Estate, has also been named in the complaint to the ACCC. BRIAN ENGLEFIELD: What I'm looking to do is actually hopefully drive, for lack of a better word, the whole of industry to the table so as we can talk about it. BILL MOULARADELLIS, KINGSTON WINE ESTATES: I think they're quite misguided. The opportunity for return improvement is not going to come from attacking your customer. KERRY STAIGHT: Bill Moularadellis runs Kingston Estate. The Riverland- based company started with less than 2. It's now the sixth largest wine producer in the country, contributing 6 per cent of the Australian drop. And nearly all of it is exported to Europe in huge bladders where it's bottled, mostly under retailers' private labels. BILL MOULARADELLIS: There has been a shift away from branded wine to private label wine, that is, wine that is controlled by the retailer. That's the space that we've chosen to embrace and engage in. KERRY STAIGHT: It's been a profitable move. But the boss says when it comes to margins, this is the worst year in a decade. BILL MOULARADELLIS: It's tough, it's tough and I don't make any bones about it, but I think you've just got to acknowledge that it's tough and get on with it and do the best that you can. We are a long- term player and you take a long- term view. You don't look at your profitability in any one year. KERRY STAIGHT: One company's profitability that has come under intense scrutiny is Australia's biggest wine producer, Treasury Estates, which owns high- profile brands like Penfolds and Wolf Blass. Its margins and shares have plunged after a disastrous 1. So who in the wine industry at the moment is making the most money and what sort of margins? BILL MOULARADELLIS: Large- scale vineyard operations, even at current prices, are very, very profitable. We know that from experience. We believe that there are premium producers and we understand that premium producers making niche products, relatively small volumes, they are quite profitable. KERRY STAIGHT: One producer in the Riverland who has swapped large- scale for niche winemaking is Eric Semmler. Today he's picking Palomino grapes which will go into an apera, which is like a dry sherry. He and wife Jenny opting to focus on Mediterranean varieties including Sangiovese, Vermentino, Tempranillo and Druif. ERIC SEMMLER, 9. 19 WINES: We're competing with the big producers which have better efficiencies of scale. So we have to do something different. KERRY STAIGHT: Hand- picking may not be common practice in this region, but when you're targeting the premium end, it's a good, albeit laborious, way to control the quality. Last year, Winestate Magazine named Eric Semmler the Australian Winemaker of the Year. The recognition is a good shot in the arm for a region known more for the amount of wine it produces than the quality. The less- is- more approach is also yielding an encouraging, if not earth- shattering, income. ERIC SEMMLER: We are keeping our heads above water, probably making a small profit at this stage, and we have to work very hard at promotional and marketing activities in order to stay out there, get our face and brand in front of people and get more people drinking our wines, and that is working as time goes on. KERRY STAIGHT: While he may have high hopes for these grapes, the producer with 2. ERIC SEMMLER: Look, I'll be frank, it's a complete mess. Wine has been commoditised. We're selling wine cheaper than soft drink at the moment, which isn't right. Fundamentally we are producing too many grapes in Australia per year. KERRY STAIGHT: The grape glut is an all- too- familiar problem for the Australian wine industry. It's been battling oversupply for more than a decade. Originally, it was estimated 2. So far, about half of that has been taken out of production and opinions differ greatly on whether to finish the job. ERIC SEMMLER: Until we take more area out of production, we're not going to solve the problems in the industry. It's as simple and as blunt as that. CHRIS BYRNE, RIVERLAND WINE: The answer is not to go around pulling out vineyards. We've learnt that lesson again many times over. Someone pulls out a vineyard, someone else plants another one. The answer to our problems in this country is to sell more wine. KERRY STAIGHT: While this Cellar Door Festival in Adelaide recently attracted plenty of enthusiastic local quaffers, most people in Australia buy wine in bottle shops owned by the two major retailers. And while more bottles over $1. Australians are drinking less. GRANT RAMAGE, COLES LIQUOR: Overall consumption of wine in Australia is pretty static. So, it's pretty hard from where I'm standing to see that there's going to be a massive increase in consumption of wine in Australia. KERRY STAIGHT: So to grow demand, the industry must send its wine further afield. CHRIS BYRNE: The global call for more wine is a growing call. There is more wine being consumed. There are more consumers coming onto the market every single year. KERRY STAIGHT: The trouble is, when Australia's exports dropped off, largely because of the strong dollar, there was no shortage of countries ready to fill the void. PAUL EVANS: Our competitors from both the New World, Chile, Argentina, South Africa, for example, and from the Old World, France and Italy, quickly filled that volume and inevitably global wine consumers have moved on. The challenge for us now is to re- engage those markets. ASHLEY RATCLIFF, OXFORD LANDING ESTATES: We've got to think what they're doing and how we can be better than them and how we can actually have better innovation. So - and I'm sure they're talking about the same thing on some river in South Africa, saying, . The label, which is owned by well- known family company Yalumba, is considered a popular rather than premium brand, with the grapes coming from the Riverland. UK. And while there has been a downturn in returns, the brand is a stayer on the shelves. ASHLEY RATCLIFF: Our sales haven't dropped. That investment into the brand, into the customers, into our distributors, is allowing us to protect our market share. KERRY STAIGHT: Ashley Ratcliff may be a Barossa boy, but he's all about selling the Riverland as more than just an industrial wine hub turning out reliable plonk. As well as running Oxford Landings vineyards, he has his own in Barmera. This one specialises in alternative varieties for the premium market. ASHLEY RATCLIFF: People think that everything out of this region is sub $1. In the last 1. 2 months we've brought in nearly 5. Accommodation Hill, that the Riverland's this sort of dry, dusty place.
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