Federal Govt announces $3.5m wine industry support package

Australia’s Federal Government has announced a $3.5 million Grape and Wine Sector Long-term Viability Support Package to provide much needed support to a currently struggling industry. 

The support package, which was announced at a press conference at McLaren Vale’s Wirra Wirra on Wednesday, will fund a range of initiatives designed to grow demand for wine in both domestic and international markets. 

At the conference, Minister for Agriculture Murray Watt said, “I’m very pleased to announce today that the Albanese Government will be providing a $3.5 million package of new funding to support Australia’s wine industry, to build demand for its products both here and overseas, to support growers with better data about what is being grown around the country and what is in demand and what is being oversupplied, and also to assist growers to explore new markets, new products as well as explore some of the competition and regulatory issues that we see winemakers experiencing.”

“Through this new funding we will start the important work on a national vineyard register, promote Australian wine domestically, and put people in overseas markets like Japan and China to build trade relationships,” he later added.

In addition to this, Albanese’s Labour Government will extend the Wine Tourism and Cellar Door Grant Program for another year, allowing wine and cider businesses to apply for grants of up to $100,000, with $10 million on offer.

“We’re also confirming today that we will extend for another year the $10 million federal Wine Cellar Door Grants Program that has been very successful around Australia,” said Watt.

The Federal Government initiative follows on from recent State Government programs that have been designed to alleviate current pressures being faced by Australia's wine industry. This includes various State Government wine export programs designed to facilitate re-entry into China and these immediate $1,500 grants to South Australian grape growers through the Rural Business Support Relief Fund.

The press conference was also used as an opportunity to provide an update on the re-entry into China, with Minister for Trade and Tourism Don Farrell revealing that, “already in the few weeks since the China market reopened to Australian wine, Australian winemakers have sold $86 million worth of wine. $80 million of that – almost all of it – has been premium wine from South Australia and, in particular, the McLaren Vale region.” 

At least 350 Australian wine producers and businesses have re-established exports to mainland China since duties were removed. 

Minister Watt said “getting back in the China market is pretty much the number one issue that winemakers have been raising with us, but there are a range of other issues that have been raised as well, and this funding package announced today – $3.5 million in new funding – goes a long way to address some of the other issues that came up during that consultation phase.

"We do think that this goes a substantial way towards dealing with some of the major structural problems that this industry is facing. What these grants and this funding will do is set the industry up for future success."