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Selling out the environment

18 Jun, 2008 05:05 PM
Ten years ago your correspondent addressed the Australian Institute of Urban Studies’ AGM on the topic The Wine Industry and Urban and Rural South Australia. The sermon started like this:

“In 1991, there were 471 hectares of immaculately tended vineyard at Langhorne Creek…[an area] limited by the amount of available water… by mid 1997, with Premier Brown’s extra squirt [from the evaporating lake], there were about 2500 hectares, and… at the closing of vintage 1999… 4317 hectares… Orlando's new vineyard alone involves 200,000 trellis posts, 1000km of drip line, and 50,000km of wire… Among the new speculators are some of the country's biggest wine names and some notorious abusers of water…”

Those Orlando numbers came from Pernod Ricard’s triumphant press statement of the day, which didn’t talk much about quality. Since then, the vineyard’s been on the market for $40 million. No takers. This year, a huge amount of it was not picked. It’s easier to scream, “Shortage!”, let small farmers take the risk and pay them peanuts in the ensuing glut.

This came to mind upon last week’s announcement of the new Board of the Australian Wine and Brandy Corporation. Kate Thompson, a lawyer at Pernod Ricard, the French owner of Orlando/Jacob’s Creek/Wyndham Estate got herself a spot. She’s the only South Australian. Dr Tony Jordan’s on, too. He’s an employee of Louis Vuitton Moet Hennessey, owner of Cloudy Bay, Domain Chandon and Cape Mentelle.

In the few years it owned Mountadam, the High Eden pinnacle of the late David Wynn’s life of magnificent achievement, LVMH showed a confounding refusal to grasp his brilliant vision, incredible attention to planning detail, and profound respect of the appearance of that rugged country. When they suddenly withdrew, they left tools on the ground. “They simply decided they had one too many wine properties in this part of the world”, Jordan told me at the time. “One had to go.”

The Australian Wine and Brandy Corporation is the wine industry’s governing body. It exists to make and enforce wine legislation, promote Australian wine internationally, and deal with trade barriers and treaties and the like. It is funded by a levy on all winemakers and its board is recommended by the Winemakers Federation but finally appointed by the government. Its chair is former Liberal Defence Minister John Moore who seems content to play a quieter role than previous Chairmen. George Paciullo, Neville Wran’s colourful Police Minister, comes to mind. Now there was a man with lunch on his tie! More withdrawing was George Mackie, who died of a heart attack after the incredible stress of prosecuting Murray Tyrrell for illegally adding sorbitol to wine.

The new appointments, says Moore, “will beef up our selling side”. But these directors’ first responsibility is to their absentee landlords in Paris and Marseilles. How will they advise Australia to sell against the vast catalogue of premium French wine brands owned by LVMH, and the substantial wine and liquor assets of the Pernod and Ricard families? Of course they’ll sell – their bosses want money. That’s why they’re in it. But what will they do for the Australian countryside and the irrigating communities they manipulate?

At a time when environmental issues, and gross carbon debits are increasingly used as restrictive trade regulating factors by the EU, there are no environment experts on the new board of the Australian Wine and Brandy Corporation. At a time when there is no water to feed the vast irrigated vineyards that have driven the most spectacular wine boom in modern history, there is no water expert. Is there a board member who can assist a French company avoid making such a mess of the estuary of our only river system? Nope. These guys are there to sell.

Maybe they’re aware that when the drought breaks, they’ll have to try and sell the fruit of utterly crazy new plantings like the investor-driven 1100 new acres one trellising contractor’s currently putting in the Barossa. The national vineyard continues to expand to a ridiculous extent, and the continuing oversupply of grapes – very handy for trans-nationals - is merely masked by the last two low drought vintages. When it rains, Australia will suddenly be back to a two million tonne crop, and by hell there’ll have to be some selling done then.

This new board is heavily laden with characters who have no personal investment in the wine industry. A few canny souls with their own money in the dirt and their families depending upon it would surely play a role in stemming the stupidity and wanton destruction wrought by these free market forces we keep hearing about.

“We’re very disappointed that they completely overlooked the two really solid viticulturers we nominated”, says Paul Clancy, chairman of Winegrape Council SA. “They didn’t even get an interview”.

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Date: Newest first | Oldest first
Well done Philip, you have spoken what many have been thinking about the recent appointments. It's a pity our governing bodies are tending to the needs of foreign companies and not to the industry itself. Interesting times ahead indeed!
Posted by wined_up, 23/06/2008 10:46:19 AM
An environmental voice should be one of the first appointments on such a board. With a couple of litres of water required to produce one litre of wine I'm sure there are many opportunities for water saving which coud yet be made by industry.
Posted by m057, 24/06/2008 8:43:39 AM

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