WINEGRAPES remain the only large-scale agricultural sector where price is determined using subjective criteria - an anomaly that must change, according to agricultural consultant Rob Hunt.
Still sitting well below the industry's boom times, grape prices have long frustrated growers, many of whom feel price-setting processes could be vastly improved.
"I suspect there's nothing more frustrating for growers than to see their carefully tended grapes dropped into the same receival bin as others of lesser quality," Mr Hunt said.
"Perhaps even worse, though, is if the other grower is paid a higher price.
"This will remain a problem while grape prices are generally derived from subjective information, such as arbitrary crop load restrictions, subjective vineyard assessment and grading, and berry tasting to decide harvest date.
"The objective measurement of agricultural products to establish performance and price is not a new phenomenon, it's been around for decades, and I'm pretty sure the wine industry is probably the last major sector of agriculture not using objective standards for supply and price discovery."
Speaking at a Wine Grape Growers Australia seminar in Adelaide last week, Mr Hunt outlined the successes other industries had achieved, and detailed his own proposed plan for an objective system.
He used the Meat Standards Australia system as an example to show the potential of price grading systems based entirely on objective measurements.
"The MSA process has been embraced by the meat and livestock industry, it works for all parties in the chain - the producer, the processor and the consumer - and because of the availability of performance information feedback, it also drives continuous productivity improvement both on the farm and at the abattoir," Mr Hunt said.
* Full report in Stock Journal, November 20, 2014 issue.
Jacinta Rose
Stock Journal's online editor.
Stock Journal's online editor.
