I was reading the business section of the Age the other day, and it said producation was up 7% on the previous year.
This despite an already pronounced grape glut. This was compounded by the fact some of the previous vintages are still sitting around.
The message for producers apparently is to hold on, things will get better for producers etc. However there is apparently a fair few properties being put up for sale around the place.
One wonders when the industry will reach critical mass, and demand will parallel if not exceed production and prices will go back up.
I personally am as a consumer a huge fan of wine prices being low. But it will force out smaller producers I guess. Which means less variety and perhaps less quality as the mega-producers like Southcorp, Fosters etc suck everything up and close it down or industrialise it.