Episode Transcript
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Speaker 1 (00:01):
I heart Dazzy.
Speaker 2 (00:04):
Today. There it's John Fabric here today on Iheartasi wine
production in this state. Our sparklings and our wines generally
are becoming known for their world class quality. Coming up
Sherri Lee Davies from Wine Tasmania discussing the outstanding opportunity
for expanding production here, where irrigation fits into that, marketing
(00:25):
Tasmania's wines to the world and if you have a
patch of land, the all important question of can you
grow grapes and join the party? It's all coming up.
First Minister for Primary Industries and Water, Jane Howlett.
Speaker 1 (00:40):
I Heartdazzy, Jane Howlett.
Speaker 2 (00:42):
We have so many primary production pursuits in Tasmania. It
always strikes me that out of all of them, wine
just seems to be blue skies. We can't produce enough
for the world or nationally. Can you explain what you've
allocated in this year's budget for wine in Tasmania.
Speaker 3 (01:00):
Yes, absolutely, and look there are so many more advantages
for us in wine in Tasmania as far as exporting
is concerned. And this budget committed three million dollars towards
the Tasmanian wine industry, so that three million dollars will
support the sector with long term sustainability as well as
(01:21):
to help expand trade and export opportunities, and that will
include creating a cold climate hub for wine research.
Speaker 1 (01:31):
What sort of things would they be digging into that.
Speaker 3 (01:34):
My understanding is that we'll be looking at all wine
that is grown in cold climates and we'll go Over
the years, we've seen vineyards from South Australia and Victoria
move here to Tasmania because of that climate. We know
our rose is well loved and is doing extremely well,
as is our chardonnay at Pinonois and Stabion Blanc.
Speaker 2 (01:57):
With does the expansion of irrigation for into the future
of wine in Tasmania. I know the North there's been
a right of activity rolling out irrigation. Southeast is the
next step progressing irrigation and I presume that's also going
to expand our opportunities with wine in the South.
Speaker 3 (02:14):
We have secured seventy million dollars towards the Greater Southeast scheme.
The irrigators have provided seventy five million dollars and we're
waiting very patiently. I may add on the federal government
to commit their share one hundred and fifty million dollars
towards this project. And John, can I just say this
(02:35):
is the first project of irrigation that has not been
funded by the federal government.
Speaker 4 (02:42):
Now it's just appolling. They know how important water is
for our state. Now it's about time they got on board.
Speaker 3 (02:51):
And stopped playing with our primary industry producers in Tasmania
and funded their share. There are people waiting as up
with me everywhere I go the importance of irrigation and
the importance of water.
Speaker 2 (03:06):
Minister for Primary Industries and Water, Jane Howe, it's here
on Ikar Tasi. Let's bring in shery Lee Davies from
Wine Tasmania.
Speaker 1 (03:14):
Surely we just heard Jane.
Speaker 2 (03:16):
They're talking about the state government's budget funding through Wine Tasmania.
Perhaps you could elaborate on how that money will be used.
Speaker 5 (03:24):
So we've got two different funding avenues I suppose that
have been announced in the Tasmanian budget.
Speaker 4 (03:30):
One is for market development that's really growing the global profile.
Speaker 5 (03:35):
Of Tasmanian wine and helping to promote and sell more
Tasmanian wine. That'll include a new focus on export markets,
which we really haven't.
Speaker 4 (03:43):
Focused on in the past.
Speaker 5 (03:44):
We've kind of not really had the scale, so we
only currently export about four percent of our wine, so
there's a big opportunity for us to really target some
export markets and see growth in those areas. The other
allocation is more on the production technical front, so around
insurering that as we grow, our sustainability credentials and practices
are the best they can possibly be. That includes a
(04:07):
focus on our carbon emissions and making sure we reduce
those as much as we possibly can. It also includes
some exciting new workforce related initiatives, so developing some new
Tasmanian wine and viticultural training offerings which is particularly exciting
and I actually don't want to reveal too much on
that one because we've got a bit of word to
do there. And also a brand new research partnership with
our friends at the Tasmanian Institute of Agriculture, looking at
(04:30):
how we can undertake some targeted research but also extend
our international reach and research partnership. So there's quite a
lot that we're looking to do over the coming to
in a bit years. The support's so incredibly welcome and
comes on the back of, I guess no doubt a
really solid business case that we put forward for that support.
Speaker 2 (04:47):
Over the years that we've spoken, it's always been a
case of we can't produce enough wine. The demand outstrips
what we produce, in fact stocks to supply up the shelves.
That's about expanding our production from here on in.
Speaker 1 (05:01):
I would have thought.
Speaker 5 (05:02):
It's a funny conversation, and so it takes a bit
to get your head around. But effectively, we always want,
no matter how much we grow, for there to be
more demand than what we currently can supply. So even
as we grow, we always want that to be the case,
because of course, when you've got pent up demand, you've
got the scarcity factor, which of course helps with the
recognition of our wines, it helps with the value of
(05:24):
our wine. So our focus has always been on growing
that demand, and we.
Speaker 4 (05:29):
Know that the supply will effectively follow. That's what we've seen.
Speaker 5 (05:33):
It's actually harder than it might sound to make sure
that we can grow that demand, but certainly part of
what we're doing in terms of looking at export markets
is acknowledging that we are going to see growth in
supply and making sure that we form new markets and
new new channels for our wine producers, new customers for
our wine producers to come and talk to and promote
(05:53):
themselves to in future years.
Speaker 2 (05:55):
Do you think it's going to be the big companies
that were ones like Penfolds et cetera. You've moved into
Tasmania now, are they going to be the bulk of
that extra supply or will it be a combination of
smaller producers along with those big players.
Speaker 5 (06:09):
It's been interesting to watch how the growth has occurred
over the last say, six or eight years.
Speaker 4 (06:15):
We've seen slow and steady growth since the mid nineteen
nineties has.
Speaker 5 (06:18):
Actually been really solid growth in vineyard plantings for many decades,
But over the last sort of six or eight years
we've started to see that growth in vineyard plantings accelerate.
In terms of who's planting and who's behind that, it's
actually really quite widespread. So we might have some smaller
or medium sized by Tasmanian standard vineyards and they're looking
to double their vineyard area, and so the growth as
(06:41):
we're seeing it is quite widespread across businesses of all sizes. However,
some of the newer plantings, which tend to be from
the larger companies, are larger in scale from the get go.
It might be a small vineyard doubling their production. But
then some of the larger plantings we're seeing might be,
you know, twenty thirty forty hectares in one go.
Speaker 2 (06:59):
Surely from Wine Tasmania here on iHeart Tassis. Still ahead
owning some land, Let's say you have some in wine country,
such as the Richmond area. The feasibility of you putting
that land under vineyards and making money out of Tasmania's
wine juggernaut. We'll dig down into that, coming on.
Speaker 1 (07:18):
My Heart Dazzy, I Heart Dazzy.
Speaker 2 (07:24):
More from our guests this week, Sherrily Davies from Wine
Tasmania here on iHeart Tassi. So many people, Serrile in
Tasmania own their own acreage, their.
Speaker 1 (07:34):
Little slice of heaven.
Speaker 2 (07:35):
How practical is it to grow grapes and connect into
the wine industry and make some money.
Speaker 5 (07:41):
Well, there's a great saying in the wine industry, and
it's not just in Tasmania, but it's particularly true in Tasmania.
The best way to make a million bucks in the
wine industry is to start with two million dollars. Well,
so it's feasible, but I would certainly be encouraging anyone
that's thinking about blanting a vineyard to do their research.
(08:01):
It's definitely not for the fainthearted, and it's definitely for
the very patient investor. So we've got some financial modeling
which actually sets out the costs to establish a vineyard
and the approximate costs of running that vineyard each year,
as well as the average value for wine grapes.
Speaker 4 (08:19):
And you will be.
Speaker 5 (08:20):
Waiting about nineteen years before your cash flow well starts
to leave in.
Speaker 4 (08:25):
A positive direction. That's just if you're planting a vinyard.
Speaker 5 (08:29):
If you are actually having wine made and adding value,
of course, that's a different model, but it is definitely
recommended that people do their research.
Speaker 4 (08:38):
For anyone that's thinking.
Speaker 5 (08:39):
About, you know, a little hobby or maybe doesn't have
that kind of money to burn, I would encourage them
to buy some property next to vineyard, you know, support
the local vineyard, overlook the vineyard, pretend it's their own,
without the blood, sweat, tears and financial ruin.
Speaker 2 (08:53):
Right, So it's not just as simple as planning out
an allocation of grapes and sort of saying okay, I'll
sell then on to someone else who's also a producer.
Speaker 1 (09:02):
That's just not going to happen.
Speaker 4 (09:03):
It's not automatically going to happen. There's a great deal
that's involved.
Speaker 5 (09:07):
Viticulture is a science, but there is a lot of
risk that comes with our wonderful climate and with seasonal pressures.
Speaker 4 (09:14):
It's a pretty serious commitment, even just at a small scale.
There is certainly demand for wine grape, so it's not impossible.
Speaker 5 (09:20):
But as I said, i'd really be encouraging people to
fully understand what they're getting into, and we in fact
even say to people, if you're purely thinking about planting
a vineyard and then selling your fruit, do your research
before you even plant to mine. See if there's somebody
who wants that fruit, and if so, which variety is,
which closes.
Speaker 4 (09:37):
It's much more detailed than might be assumed.
Speaker 2 (09:40):
The last time I looked for testimatia was yielding around
three thousand dollars per ton, when on the mainland the
cheaper grapes are around six hundred. If that's still the fat.
Speaker 4 (09:51):
It is, in fact our value.
Speaker 5 (09:53):
You're testing me a little bit on the exact numbers,
but I think we were up closer to four thousand
dollars on average this year, and indeed a record for
US The one thing I'd say about that pricing data
is that it's great for that sort of comparison, so
to see where Tasmania sids and obviously is valued so
much more highly than many many other wine regions. But
it's also the data only references sort of less than
(10:15):
a third of all of our wine grapes, so I
would actually be reasonably confident that our value would be
higher than that. But this is just based on voluntary,
captured and reported data.
Speaker 2 (10:26):
Have their differences to regions of Tasmania and their suitability
for growing both in climatic conditions and soil, because I
know the North seems to be quite advanced in terms
of irrigation. For example, the accolades that the North is
getting are just extraordinary. Is there a difference there?
Speaker 4 (10:44):
Certainly is so. I mean you think about it, even
just forget about vineyards for a moment and just think
about as you travel around the state, how different the
landscape is. You've got lush areas, you've got bone dry areas,
You've got very few flat areas except maybe up through
the middle. It is an incredible.
Speaker 5 (11:00):
Diverse island, and so you can obviously appreciate when you're
planting something in this diverse landscape, diverse climates, diverse soils,
all of those.
Speaker 4 (11:09):
Things different aspects. It's incredibly different. We've got seven wine.
Speaker 5 (11:12):
Growing areas that we talk about, so when we do tastings,
for example, we'll actually look at them from a subregional perspective.
What's really interesting though, is there's not as much uniformity
between our individual areas.
Speaker 4 (11:25):
So we talk about Potama Valley or the.
Speaker 5 (11:27):
Derwent Valley, there's actually a lot of variety even within
those areas that we can kind of put some characteristics,
some common characteristics or descriptors around because the island is
so diverse. So we've got wonderful examples of wine producers
that have got two vineyards in the same area, say
call River Valley, ten kilometers from one another, and they
keep those grapes separate and bottle them as individual vineyard wines.
(11:50):
And you look at these wines ten kilometers apart, and
it's incredible they ripen at different times. I would actually say, yes,
there are absolutely differences around the island. More important than
just considering a wine region like a wine area, is
a site consideration. So site suitability in Tasmania is absolutely critical.
Speaker 2 (12:09):
When we think of wine regions around Australia, I think
of the Barossa Valley for example, and how you can
just go touring through the Barossa Valley as a wine
lover from vineyard to producer cellar doors. Do we have
that kind of connectedness here in Tasmania yet or is
that a work in progress that we need to look at.
Speaker 5 (12:28):
We definitely have in some areas that sort of really
strong cellar door focus and touring opportunity, but in some
other areas I guess it's still a little bit of
development occurring. So if you look at somewhere like the
core of a valley like that's quite established in terms
of many many celadors along those main roads that you
can pop in and out of. Same thing with the
(12:48):
West Tama really quite recognized wine trails and wine touring destinations.
And then of course you've got the East Coast which
is rapidly becoming almost a cellar door journey up that
great Eastern dry, so lots of development happening in that
celid door space. We're certainly already seeing visitors to Tasmania
come specifically for our wines and to visit our clar doors,
(13:08):
but we're seeing growth in solidors in areas that are
quite new as well, so a bit of both, a
bit of established, bit of growing.
Speaker 2 (13:15):
Interesting because the East Coast can often be rather dry,
so clearly there's no irrigation that they're tapping into along
the East Coast, those producers or not.
Speaker 5 (13:25):
The Swan Valley scheme is available for a good number
of those East Coast wine producers. Part of the research
you would be doing should you choose to go ahead
and blood that vineyard, John would be your water security.
So if you don't have access to water and some
sort of dam or water storage facility, then a vineyard
(13:45):
is an even more risky pursuit.
Speaker 4 (13:47):
So they do have irrigation there.
Speaker 5 (13:49):
And as just a general observation, when I first moved
to Tasmania, I was blown away by the level of
foresight and investment that had occurred by both state and
federal governments in the irrigation scheme. We actually have quite
plentiful rainfall on parts of the island, not obviously across
all of it. You know, water is so important, and
elsewhere around the country it's I think people realizing just
(14:11):
how important it is, and that's.
Speaker 2 (14:13):
Our challenge now for the Southeast were the irrigation, and
that's going the government is going to proceed with that,
and that just opens up opportunity school lore, doesn't.
Speaker 4 (14:23):
It the greatest Southeast irrigation scheme.
Speaker 5 (14:26):
I obviously am not close to the actual business case,
but from a sort of lay person's perspective in terms
of the growth that's happening in just my sector in viticulture,
but also fruit all sorts of agricultural opportunities in there,
I find it hard to believe that it wouldn't stack up.
And certainly I think everyone involved in affected is really
hoping that the federal government will come through with its commitment.
(14:47):
You know, if you look at something like a vinyard
right now, you're planning for something five plus years down
the track. So every delay that we experience is having
a pretty serious impact on investment and definitely delaying it.
Speaker 2 (15:01):
Surely Davies from Wine Tasmania, our guests, such a golden
industry for this state, still with boundless potential. That's iHeart
Tassi for this week. Here this episode in full, Let
any time.
Speaker 1 (15:12):
That's iHeart Tasin, my heart Sassy