Just how much are grapes worth?

A good question and one that varies.

The most common sale sees a grower using a contract or the spot market. 

With a contract there is an agreed upon price for the grapes set early in the season. If a grower is willing to gamble that the market is going to be short (and therefore demand high) they can sell on the spot to try and maximise their profit.

Both ways have their benefits and pitfalls. There are a certain number who are experiencing difficulty this year as the market adjusts to selecting a lower yield but higher quality crop because of the oversupply last year and the impact of the current economic market.

Ultimately there will always be a market and the shrewd grower will continue to produce quality grapes that will be in demand.

The yield for vineyards will vary depending on the growing conditions during the year. Last year saw tonnages approaching 18 tonnes per hectare. This year with a concentration on lower volume and quality it is anticipated to see yields of approximately 12 tonnes per hectare.

In 2008 growers could receive approximately $2400 per tonne (although this was variable depending on the variety and quality). This year prices are expected to average around $1700 per tonne (this year is expected to see a much larger variation in prices because of the wineries being a little more selective).

All in all a grower could anticipate approximately $20,000 per hectare this year if all goes according to plan.

To put that into perspective a little, a 1/4 acre section (if that is typical any more) could grow $2500 worth of grapes a year.