Australian Grape & Wine has welcomed the South Australian Government’s $109 million support package for the industry and called on other state governments to match the commitment.
The South Australia Wine Industry Transition and Growth Package features a suite of measures including government-backed loans, business support, market promotion and the appointment of a Wine Industry Coordinator.
It comes as the state’s $2.4 billion wine industry – which produces 80% of Australia’s premium wine and supports more than 90,000 jobs – grapples with global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures.
Australian Grape & Wine Chief Executive Lee McLean congratulated Premier Peter Malinauskas for recognising the significant challenges facing grape growers and winemakers and responding with practical support.
“This is a significant and very welcome commitment to an industry undergoing an incredibly difficult period of structural adjustment,” McLean said.
“The package includes $100 million in government-backed loans to support vineyard transition, $1 million in vineyard transition and diversification support for growers, $2 million to develop solutions for the disposal of CCA-treated timber posts, and $500,000 to develop industry-led solutions to address surplus wine inventories.
“It also includes an additional $5 million to extend and expand the Global Wine Growth Program for two years, a $675,000 advertising campaign to promote South Australian food and wine, and the appointment of a new Wine Industry Coordinator to work with industry and government through the transition.
“These are practical measures that respond directly to challenges Australian Grape & Wine has been raising with governments, including through our Federal Pre-Budget Submission.
“South Australia produces around half of Australia’s winegrapes and half of our bottled wine, so this investment will make a real difference.
“But the challenges facing our sector do not stop at the South Australian border. The other half of Australia’s grape growers and winemakers are facing many of the same pressures and are equally deserving of support.
“We are calling on the Australian Government to work with their state government counterparts to match South Australia’s commitment and ensure equivalent support is available to grape growers and winemakers across the country.
“Premier Malinauskas has demonstrated strong leadership and a genuine willingness to work with industry on practical solutions. We congratulate the Premier and his Government on this important investment in the future of the Australian wine sector.”