Barossa Valley rescued by small entrepreneurs after tragic loss of old shiraz and grenache vines in 1980s pullout
Small entrepreneurs in the 1980s started demand for Barossa Valley old-vine fruit that has been undervalued for years.
A treasure trove of 100-year-old Barossa Valley pioneer-planted shiraz and grenache vine lost in the 1980s vine pull scheme, triggered a structural revival of the valley.
The vine pull, legislated by the South Australian government in 1987, compensated growers who removed old vines or unwanted varieties and left land unplanted. It was a response to five years of grape surpluses and very low prices.
In 1982, the surplus of 9000-10,000 tonnes of red grapes led to the uprooting of 400-500 hectares of vines, and the continued top-grafting of grenache and mourvedre to chardonnay. Penfolds vintage notes said it was likely 500ha of vines would be removed in the 1984 winter from the Barossa Valley, Clare Valley and Angle Vale.
In 1985, shiraz brought $275 per tonne, grenache $190 per tonne, chardonnay $420 per tonne and riesling $385 per tonne. These sub-economic prices, distorted between white and red grapes, led to the vine pull scheme. It reduced plantings in the Barossa by 9%.
The vine pull heightened the possibility of the Barossa Valley being smothered by housing developers and subdividers, with doomsayers predicting it would be only fit for growing vegetables growing by century’s the end. The regional grape crush started to decline.
Yet 10 years after the loss of so many old vines, Barossa shiraz was bringing prices in excess of $3000 per tonne from Penfolds. By 1989, shiraz had risen to $800 per tonne, cabernet sauvignon to $1220 and chardonnay tonne (largely unwanted 20 years later) to an astonishing $1590 per, while riesling slipped backwards.
The valley’s rescue came from small band of experienced winemakers (and in some cases frustrated grape growers turned winemakers) followed Peter Lehmann’s lead and started their own small wineries, including St Hallett, Rockford, Bethany, Grant Burge, Charles Melton, Heritage, Willows Vineyard, Elderton that opened cellar doors during this crisis. This had a long-term impact on grape and wine prices.
A region historically dominated by a few large slow-moving national and international companies were challenged by this vibrant mix of dozens of small entrepreneurs. They started demand for old vine fruit that has been undervalued for years, create new labels and products and rekindle tourist interest in the region’s food and lifestyle.
