The South Australian Government has recently announced a new initiative to strengthen the state’s wine industry by allocating $260,000 in support for Riverland grape growers grappling with an oversupply of red wine grapes. Clare Scriven, the Minister for Primary Industries and Regional Development, detailed the efforts including aiding Riverland’s CCW Co-operative, the nation’s largest member-owned wine grape cooperative, in their efforts to help their growers diversify into alternative crops.
This initiative was showcased during yesterday’s National Agriculture Ministers Meeting in Brisbane, where progress by the Viticulture and Wine Sector Working Group was discussed. The Working Group, initiated in March with support from Minister Scriven, is tasked with considering a national strategy to surmount issues within the wine and viticulture sector and to secure its future profitability and balance.
Adding to the support for the wine industry, a report titled “The current wine crisis: Ways forward in Australia’s wine regions” by Professor Kym Anderson from the University of Adelaide’s Wine Economics Research Centre was commissioned. This report, which has been forwarded to Agriculture Ministers and made publicly available, evaluates potential strategies to mitigate oversupply and guide the wine industry towards sustainability.
In the report, Professor Anderson suggests various routes to tackle the oversupply issue while ensuring a sustainable growth trajectory including aligning production closely with consumer preferences, which is crucial for opening up new markets. This report forms a basis for the Working Group as they prepare a conclusive set of recommendations due at the end of this month.
Minister Scriven acknowledged the severe impact of current industry conditions, especially in South Australia, which is responsible for producing half of Australia’s wine output and 80% of its premium wines. “Recovery measures need to be implemented at both a state and national level to assist us to return to a sustainable supply and demand level,” she said in the press announcement.
Additionally, the state has committed $50,000 towards community events focusing on mental health and wellbeing across wine regions to support vintners and growers deeply affected by these oversupply challenges. An Implementation Officer has also been appointed by Riverland Wine to facilitate the execution of the Riverland Wine Industry Blueprint, aimed at supporting wine grape growers interested in transitioning to novel production methods or alternative business avenues.
Peter Szabo, General Manager of CCW Co-operative Limited, shared his views on the grant provided by the government, “With the support of the Minister for Primary Industries and Regional Development Clare Scriven, CCW Cooperative Limited in poised to explore new business opportunities and revenue streams. Our goal is to create a more dynamic and robust agricultural sector, ensuring the long-term prosperity of our members and the wider Riverland community.”
Other initiatives over the past year include a $1.85 million package to re-engage with China, a $3.5 million long-term viability support package for the grape and wine sector, and additional funds in the recent State Budget directed towards financial planning and counselling for producers.
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