Used to produce tequila, agave crops have been commercially planted in South Australia for the first time. Vineyard owner Oli Madgett reveals how this first step could help build a new industry in Australia
Based in McLaren Vale, South Australia, The Madgett’s Block vineyard is now the site of the state’s first commercial agave tequilana plants – growing what is a key ingredient in tequila.
Also known as blue agave, up until this point the crop had only been grown and distilled in certain areas of Mexico, but The Madgett’s Block vineyard has taken the first step to change this.
The vineyard is set to grow 1,200 agave tequilana plants, primarily to produce agave spirit, while also experimenting with other agave varieties that can be used for animal feed and as a source of fuel.
The Madgett’s Block
Originally emigrating from London to McLaren Vale, vineyard owners Oli and Tara Madgett have now been grape growers for nine years.
Coming from non-agricultural backgrounds, the Madgetts purchased the 6.5-hectare (16 acre) established vineyard on a hunch that it felt right, with the previous owners helping to kickstart the takeover period.
“We didn’t have much knowledge of what we were taking on and we were probably led by our hearts more than our mind. The previous owners have done an amazing job on this block, so that helped encourage us take on the risk,” Oli says.
A previous grape-supplying contract with Treasury Wine Estates was in place when the vineyard was bought, so this was then inherited to the new owners to help get them up and running.
“It was a really smooth transition, the help was invaluable,” Oli says.
“Having the previous owners available to hold your hand through the first year made all the difference.”
Making change
Since the COVID-19 pandemic in 2020, Oli describes the wine industry as having been a roller coaster, which has made it hard for him as a smaller producer.
In 2020, tariffs were imposed on Australian wine exported to China – one of Australia’s biggest wine export markets.
Because of this, less wine was being exported and more was being backed up in tanks, Oli says. With an oversupply and more wine in storage, demand softened, with Oli describing the industry as being hit by a ‘perfect storm’.
“Suddenly we found that the market had flipped, from growers not being able to meet the demand, to there being a significant oversupply,” he says.
Facing a lack of demand, he decided enough was enough and some of the vines started being removed at The Madgett’s Block to reduce the economic losses, with the Madgetts looking about at what they could do to diversify.
Working with plant-based technology company Vircura, a solution was found – planting agave crops.
Agave
The agave crop has many varieties, presenting a range of opportunities including being used as a fuel source – alongside the ability for it to be distilled into tequila.
Although the primary goal is to use the crop for distillation and spirit production, other agave varieties will be trialled for the creation of renewable biofuels.
This could be a huge win for sustainability, as the crop produces biomass that can be used to produce renewable biofuels.
Oli says there may be requirements for using alternative fuels in the near future, so he plans to look at whether the crop’s leaves can be harvested for this biomass.
“We’re looking at whether we can harvest these leaves while the agave is still growing, and trim them off at set points in time,” he says.
Agave usually takes up to 10 years to grow in Mexico for distillation, without any irrigation, and now Oli wants to see if environmental changes will lead to a quicker harvest.
“We can give the crop water that it usually wouldn’t have, put it into better soil and place it an environment that it wouldn’t normally be grown in,” he says.
“In these conditions, we want to see if we can speed up the harvesting process.”
In addition to being distilled for tequila, Oli says agave can be processed as silage for animal feed. Because it is also fire resistant, it could be strategically planted as firebreak to protect crops from bushfires.
Looking to the future of the crop, Oli sees agave as an option for growers that are looking to diversify in the wine industry.
Although he is taking a risk as the first to commercially plant this crop in South Australia, Oli says he’s willing to take on the challenge, as it will provide invaluable information for other interested growers.
“It’s an emerging space and we’re wanting to help to create an agave industry in Australia,” he says. I’m looking forward to sharing the journey that we’re on and the learnings that come from it, and hopefully we see more people step in and help build the industry as well.”