Ancient Cypriot grape offers hope for Australia’s wine growers
An ancient white grape variety from Cyprus is reducing water use by as much as 75% for Australian growers while surviving temperatures above 45°C. Producers in South Australia’s Riverland and Barossa Valley believe Xynisteri could provide a lifeline for parts of the wine industry facing rising water costs, oversupply and climate pressure.
An ancient Cypriot white grape variety first introduced to Australia in 2018 is beginning to attract attention from growers searching for more climate-resilient alternatives to traditional wine grapes.
According to reporting by the ABC’s Landline programme, Xynisteri has reduced water consumption by approximately 75% for Riverland grower Yianni Koutouzis, while also tolerating extreme heatwave conditions that damaged other varieties.
The thick-skinned grape, which has a history of more than 5,500 years in Cyprus, is being trialled commercially in South Australia’s Riverland and Barossa Valley.
Koutouzis said his 800 Xynisteri vines can go months without irrigation, unlike his Shiraz and Chardonnay blocks, which require watering every 2 days.
“It’s reduced our consumption so much, about 75 per cent less water than our shiraz or chardonnay,” he said.
Heat and water pressures reshape vineyards
The emergence of drought-tolerant varieties comes at a difficult moment for Australia’s wine sector.
As reported by the ABC, parts of South Australia have experienced three consecutive years of below-average rainfall alongside record heatwave events. The Riverland’s recent 49°C temperatures caused severe stress across some vineyards, while Xynisteri reportedly showed little to no burning.
At the same time, temporary water market prices in the Lower Murray Darling Basin have more than doubled over the past year, according to water consultancy Riccardo Group, rising from AU$187 to around AU$400 per megalitre.
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Peter Hayman from the South Australian Research and Development Institute said the economics of water are becoming increasingly difficult for grape growers.
“The biggest worry is that the cost of water relative to the cost of grapes is a challenge because the price people are being offered for grapes is low,” he said.
Industry grapples with oversupply
The Australian wine industry continues to struggle with oversupply and falling grape prices.
Some Riverland growers received less than AU$100 a tonne for grapes this season, while Wine Australia data showed production exceeded sales in 2024 to 2025.
Koutouzis said his family recently mulched shiraz fruit back into the ground because prices had collapsed.
“To watch my mum and my dad cry was absolutely heartbreaking,” he said.
Embracing challenges
In the Barossa Valley, producers Paul Georgiadis and Mara Georgiadis have already bottled their first commercial Xynisteri vintage.
After initially planting just 90 vines in 2021, the couple have expanded to more than 600 vines across an acre of vineyard.
As previously reported by the drinks business, Australian producers are increasingly exploring unconventional approaches to climate adaptation and differentiation, including underwater wine maturation projects such as Subsea Estate in Western Australia.
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