The North East Zone of Victoria has a rich history in viticulture with each of the five regions, Alpine Valley, Beechworth, Glenrowan, King Valley and Rutherglen, all having record of vineyard plantings in their regions since the mid 1800’s. The zone has experienced exceptional growth in recent years including now more than 235 vineyards comprising total plantings of 3,681 hectares of which 3,311 hectares are bearing. 14.8 percent of the plantings are to 25 different white grape varieties whilst 20 different red grape varieties account for the remaining 85.2 percent.

Intended planting of vines over the next ten years will see an increase of 420 hectares (70.6%) in white varieties and 257 hectares (7.7%) in red varieties by 2013. Overall, additional plantings will represent an 18.5 percent increase in total vine planted compared to current plantings.

52 percent of the vineyard mass has been planted within the last five years, with a further 25 percent being less than ten years old.

The 3,311 hectares of bearing vines produced 30,918 tonnes of grapes which represents a yield 9.12 tonnes per hectare. 84 percent of the total tonnage was in red grape varieties. Almost two thirds of the total production of the zone was sold by its grower to another party, the balance was made into wine by the grower or under contract. Approximately 8,355 tonnes of grapes were sold outside the zone leaving 22,326 tonnes for processing within the zone which ensures that the economic benefit of the winemaking process was not lost to the area. Approximately 11,000 tonnes of grapes was sold by its grower to a producer within the zone.

Therefore, of the 30,918 tonnes produced in the zone, including wine made outside the zone under contract, only 8,592 tonnes are leaked outside the zone, leaving 22,326 tonnes (72 percent) of the grapes grown in the zone to be processed in the zone and therefore retaining the greatest percentage of the economic impact within the zone.

Of grapes sold to any third party, 89.75 percent were sold under contract and only 10.25 percent on the spot market.