Agricultural diversity driving Mildura land market: HTW
Wine growing land in the Mildura region is catching the eye of big wine companies as a number of large grape vineyards are purchased with the intention of redevelopment into almonds or table grapes according to Herron Todd White.
Herron Todd White's, November rural report said despite no substantial increase expected in wine grape prices for next year, wine companies now feel a need to once again compete to source grapes due to a combination of reduced supply and improving export markets.
"A 60 hectare vineyard at Gol Gol and a 46 hectare vineyard at Wargan purchased by established table grape growers for redevelopment," the report said.
"These sales follow closely behind the sale of the 900 hectare Del Rios vineyard at Kenley which is in the process of being developed to almonds and the 200 hectare vineyard at Nangiloc which is being converted to dried fruit.
"Further eroding the available supply of grapes is the recent purchase of around 320 hectares of wine grapes in the Sunraysia region by China’s third largest wine maker, Weilong Grape Wine Company. This potentially removes approximately 6,000 tonnes of fruit that has historically been sold to local wineries. Weilong has also negotiated to buy land close to Mildura on which they intend to construct a winery, presumably to process their own fruit, but potentially also buying fruit from local growers.
"The NSW Government has recently announced plans to construct a $320 million pipeline connecting Broken Hill to the Murray River, a distance of 270 kilometres. This announcement followed a period of uncertainty for the 18,000 residents, who have relied on the Menindee Lakes for drinking water. With the lakes having run dry three times in the past 13 years, there is clearly a need to shore up their supply.
"While the decision is no doubt welcome for Broken Hill, it appears to ignore the needs of irrigators below Menindee who were hoping for a policy that would ensure that greater volumes of water would be stored at Menindee in the future."
Property Observer found a 7,339.00ha property with almond and wine grape farms on the market at 1 Thurla Rd Mildura.
The property currently has 565 acres of almonds, 291 acres of premier wine grapes, 16 acres of avocado plants and 250 acres of commercial lucerne.
It also features 2000 acres under spray irrigation for the production vegetables, potatoes & lucerne.