Figures show an industry changing

AS chair of Riverland Wine, I welcome the release of Wine Australia’s 2026 National Vintage Report, but the message behind the numbers is sobering.

This is no longer a quiet correction on a spreadsheet. It is now visible across the Riverland, in vineyards being rested, vines being removed, blocks being walked away from, and families questioning whether there is a future in the industry.

The national winegrape crush fell to 1.27 million tonnes in 2026, the smallest vintage since 2000 and 25 per cent below the 10-year average.

South Australia remained the nation’s largest producing state, while the Riverland recorded 339,195 tonnes down 16 per cent on 2025 and 25 per cent below its five-year average.

For me, this report is a clear signal that the industry is changing structurally. This is not simply another low-volume season; it is the reshaping of Australia’s largest winegrape region.

The Riverland remains the economic engine room of Australian wine, but this report makes one thing clear: volume alone is not the measure of success.

The real test is whether growers can generate sustainable returns, whether wineries have the confidence to invest, and whether regional communities can continue to rely on a profitable wine sector.

The 2026 figures highlight a sharp shift in varietal demand. In the Riverland, chardonnay increased by 35 per cent to 100,528 tonnes, overtaking shiraz as the region’s largest variety. Shiraz fell by 44 per cent to 57,079 tonnes, its lowest level in at least 25 years.

The numbers show the market is responding to changing global demand, but we should not assume the adjustment is complete, or that lower production automatically translates into healthier grower returns.

There is no doubt the industry needed to rebalance, particularly after years of red wine oversupply. But we must be very careful that the correction does not become an overcorrection, because once vineyards are removed, the people, skills, infrastructure and confidence that sit behind them do not simply return when the market improves.

We expect further vineyard removals across the region. That is already visible, and it will continue unless growers are given a commercially realistic pathway through this transition.

The Riverland’s reported winegrape value fell to just under $97 million in 2026, down from $125 million in 2025. That reduction is felt across the whole regional economy.

When almost $30 million comes out of the regional grape economy in one year, it is not just a vineyard issue. It affects contractors, transport operators, local suppliers, service businesses, families and communities.

Growers are absorbing rising input costs, labour pressures, higher interest rates and weaker commercial settings. Many are making decisions today that will determine whether the next generation stays in the industry at all.

This is why State Government support matters. The Riverland is not asking to avoid change; we are asking for practical support to manage it responsibly, support that helps growers rest or remove unviable vineyards, manage abandoned or unmanaged blocks, protect biosecurity, transition land use where appropriate, and keep regional businesses and communities from absorbing the full shock alone.

Despite the challenges, I believe the Riverland remains one of the most strategically important wine regions in Australia.

The Riverland provides scale, efficiency, reliability and innovation. It underpins domestic supply, export competitiveness and the commercial backbone of Australian wine. But resilience should not be used as a substitute for profitability.

A sustainable wine sector requires sustainable vineyard businesses.
This 2026 Vintage Report should sharpen the industry’s focus on commercial outcomes, market development, supply-chain transparency and policy settings that support grower viability, but it should also sharpen the State Government’s focus on the scale of what is happening on the ground.

The next phase cannot simply be about producing less and hoping the market corrects itself. It must be about producing with purpose, aligning supply with demand, restoring confidence, and ensuring growers receive returns that reflect the real cost and risk of production.

If Australia wants a strong, competitive and sustainable wine industry, it must start with viable growers in its largest producing region.

As chair of Riverland Wine, I will continue advocating for practical state and industry measures that improve grower profitability, strengthen market access, support responsible vineyard transition and ensure the Riverland remains central to the long-term success of Australian wine.
BRIGID NOLAN
Chair
Riverland Wine