What will the new wine sector task force do?

A new wine sector task force was announced at the first Agriculture Ministers' Meeting (AMM) of the year last Friday 8 March following discussions about the need for additional support in Australia's viticulture and wine sector.

The resolutions-based body will include representatives from the commonwealth, state and territory governments, Wine Australia, Australian Grape & Wine, along with other relevant groups, and will provide recommendations to the Agriculture Ministers to address the challenges currently being faced by wine growers nationwide. 

“Australian Grape & Wine has been encouraging a coordinated and collaborative approach to deal with the challenges our sector is facing and we are pleased Ministers have agreed to form this working group,” said Lee McLean, CEO at Australian Grape & Wine.

“We know there are a number of regions experiencing acute financial pressure as a result of supply and demand imbalances, including the Riverland in South Australia, the Riverina in NSW, and the Murray Valley in Victoria, and it’s pleasing the group will focus on ways we can work together to relieve these pressures, in these regions.” 

The ministers that attended the AMM meeting acknowledged the significant pressures currently being faced by Australia’s wine industry as warranting further industry action. Current pressures on the industry are being felt nationwide, however have been most evident and vocalised in the Riverland wine region where wineries have reportedly been offering growers rates as low as $120 per tonne, less than half the cost of production. 

“Our growers need immediate crisis support,” said Lyndall Rowe, Executive Officer at Riverland Wine, following a recent meeting with state government discussing the urgent need for short-term financial assistance. At the meeting, grape growers were critical about the lack of action across all levels of government. 

“It’s not just our growers — as a viable and strong industry in our region, we create jobs for grape pickers, winemakers, wineries and local hospitality venues, transport providers, local retailers and more,” said Rowe. 

Since the time of the above meeting, Riverland grape growers have put out a call for a moratorium on the planting of grapevines in Australia, saying it is a necessary solution to solving the current oversupply of red wine grapes. 

The new task force will extend upon the existing suggestions and campaigns to come up with recommendations as to how Australia’s wine industry should best confront its current economic difficulties. It will also visit the wine regions most affected by the oversupply to discuss with victims what they would like to see occur. 

“Australian Grape & Wine has put a range of options to the Albanese Government ahead of the Federal Budget, including proposals to help rebalance supply, grow demand and boost regional tourism,” said McLean.

“These proposals are all aimed at helping Australia’s grapegrowers and winemakers to find a pathway through the current challenges towards a sustainable and more profitable future.”

The task force is scheduled to report back to Ministers with proposals by the end of April. It is hoping that implemented proposals will support improvement in the grape and wine sector and increase its long-term stability by July. 

“We look forward to working with Ministers, officials and other industry representatives to drive a positive agenda in the best interests of grape and wine businesses,” said McLean.