Australian Drought = Great wines coming up?

Interesting question. Yes, generally it's accepted by most that stressed vines make better wine, so dry farming, close row spacing, keeping yields low and going easy on fertilizer are called for. However, as '03 in Europe showed, there is such a thing as *too much* stress. In extreme drought conditions, vines may "shut down," stopping the ripening process before phenolic maturity. In '03, that meant that some wines had very green, harsh tannins that will likely outlast the fruit (no mean feat).

Australia is a naturally hot and dry climate (in most regions) so a drought there could be disastrous as it might introduce too much stress for the vines to handle. In '07, several factors conspired to lower yields: early frosts, drought and harvest-time rains, a triple whammy -- but it didn't get too hot. From what I've heard, expectations are for a good but not great year there. Here's an article on the subject:

Mark Lipton

You rightly suggest Mark the problem was not solely drought. Dependant on region, (which have huge climatic variations between their respestive locales), drought (most regions are suffering to varying degrees), and frost (as in Yarra Valley Vic. & Clare Valley SA) were the most damaging. Some wineries have been wiped out, others are hanging in but doing it tough. Unfortunately, any reports on 2008 I have heard are not positive at all, in fact are suggesting crops at lower levels than 07. The glut is also suggested to be eradicated by

2008, so pricing over the next 12 months will be interesting. As for quality, well, its a bit early to call the 06's yet, but I am enthusiastic about some of the top end reds, because as the OP suggested, harsh times often lead to sensational wines.

hooroo....