WHEN Foster's Group put a vineyard up for sale next to Danny Gilbert's own rural holding at Tumblong in the eastern Riverina of NSW, he seized the opportunity because the price was so low.
He and his business partners are now considering ripping out the "high-quality commercial vineyard" in favour of lamb production, The Australian Financial Review reports.
Gilbert's move shows just how much the values of both commercial and lifestyle vineyards have fallen in recent years.
Foster's has sold 20 of 33 vineyards put up for sale in the face of headwinds from stricter bank lending, an oversupply of grapes and a depleted export market.
But buyers have been few and far between, and values have dropped by at least 30 per cent across the board - some lesser winegrowing areas vineyards have shed more than half of their value.
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