A report from the Winemakers’ Federation of Australia showed 85 per cent of grapes picked this year were harvested at a loss.

Heathcote Winegrowers’ Association president Phil Meehan said most central Victorian winegrowers were smaller operations producing premium wines, which were still profitable.

“Quality still demands a good price,” he said.

“It’s that cheaper end that is cutthroat.”

Just 22 of the largest growers in Australia accounted for 85 per cent of the nation’s total crush in 2015. 

Mr Meehan said central Victorian growers were buoyant after an excellent harvest.

“Seasonally, 2015 was one of the best vintages we’ve had in recent years; the quantity and quality were both really good,” he said.

“We’re seeing better quality wines being produced than there were eight or five years ago.

“In the Heathcote region the members I’ve spoken to in recent weeks had a high level of optimism.

“Certainly no one’s looking at getting out; in fact a number of us are looking at expanding.”

However stiff competition domestically from both local and imported wines meant many growers were looking overseas to make their money. 

“A lot of winegrowers are finding it easier to sell wine overseas than in the local market,” Mr Meehan said.

Mr Meehan said cellar door traffic was growing at his winery, Meehan Vineyard, at a rate of about 15 per cent each year.

“There’s certainly no better way to build relationships with customers,” he said.

Balgownie Estate manager Kathryn Honey said expanding the business’ focus on food, accommodation and cellar door components resulted in increased profitability.

“Balgownie always does well because we serve food seven days a week,” she said.

With 70,000 vines at its Maiden Gully vineyard, Balgownie is one of the region’s biggest wine producers.

Visitor numbers to Balgownie are up in 2015 on previous years.

“We’re always looking to increase that, however it is a challenge selling wines because there are a lot of winemakers in the space,” Ms Honey said.

She said the business experienced distinct upswings in business during peak tourist periods.

“Exhibitions in town make a big difference,” she said.

Ms Honey said Balgownie Estate was always searching for the next way to increase profitability. The winery recently expanded to host weddings.

Ms Honey said good customer service was paramount to maintaining Balgownie’s profit margin.

About 1.67 million tonnes of grapes were crushed in Australia in 2015 – up 0.4 per cent on the 2014 figure. The red crush decreased 4 per cent to 835,500 tonnes while white was up 5 per cent to 834,000 tonnes.