Deloitte's eighth annual Financial Wine Benchmarking Survey of about 70 Australian wineries has been co-authored by the Winemaker's Federation of Australia
The study examined the financial performance of wineries across Australia and is based on individual financial results and information provided by individual wineries.
Deloitte Wine Industry Group leader, Stephen Harvey, said the low yielding 2007 vintage placed pressure on the industry due to the expected rise in overhead costs per litre produced.
"During 2007, wineries experienced volatile market conditions, due mainly to climatic conditions that resulted in lower levels of supply. However, improved weather conditions in early 2008 increased production to a higher level for the industry overall," he said.
"Wineries with revenues greater than $20 million responded well to 2007 market conditions and recorded earnings just below 20 per cent of revenue, while wineries with revenues less than $1 million continued to record low earnings before tax."
The Winemakers' Federation is the peak industry body representing Australia's wineries on all national and international issues.
Despite an urgent need in India for such a Federation with an umbrella over all wine producers, there is no such organisation yet with a common goal of promoting wine production through quality awareness and standards formulation.
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