The Ministry for Agriculture, Fisheries and Forestry has announced an independent impact analysis of Australia’s grape and wine sector, to be led by economist and former politician Dr Craig Emerson. Following on from industry concerns raised in the Food and Grocery Code Review, the impact analysis will determine whether there is currently a market failure in the sector and will provide advice about potential regulatory interventions available.
“We welcome Minister Collins’ announcement of the impact analysis, which comes at a critical time for the Australian wine industry,” said Lee McLean, CEO of Australian Grape & Wine.
“We know many are doing it tough at the moment and this analysis will allow industry and government to work together to contemplate how we can drive a more healthy and sustainable value chain in our sector in the future.”
Julie Collins, Australia’s new Minister for Agriculture, Fisheries and Forestry, added: “We know our grape and wine sector has faced some very tough times. That’s why our Government has worked hard for the industry to open new markets for trade diversification like India, the United Kingdom, Thailand and the reopening of China.”
Launched as part of the Federal Government’s $3.5 million support package that was announced in June and will be delivered by Wine Australia, the independent analysis will review wine industry regulatory options concerning fair trading, competitive relationships, contracting practices and risk allocation in the context of Australia’s current oversupply of red wine grapes.
“While the reopening of the China market is a great step forward for the industry, there is still work to be done in response to the oversupply of wine and to understand the general trading environment for grape growers and wine makers,” said Collins.
All Australian grape growers, wine makers, and retailers will be invited to contribute their opinions on the current health of the industry, with specifics about how to participate to be shared via Wine Australia and the Department of Agriculture, Fisheries and Forestry in the coming weeks.
“A more transparent and balanced marketplace will benefit not only producers and retailers but also consumers, who ultimately want access to high-quality Australian wines at competitive prices,” said McLean.
“We look forward to working with Dr. Emerson to make sure his advice to government recognises the complexities of the supply chain and reflects commercially viable solutions that drive the long-term growth and success of our industry.”
Julie Collins added that, “following the completion of the analysis, the Australian Government will consider Dr Emerson’s recommendations to ensure a fair and functioning wine, grape and retail market.”
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