Sebastian Calderon, Hugh Schuitemaker, Murray Pioneer
New economic support for Riverland grape growers will fall short of what is necessary to overcome current industry challenges, according to the Riverland’s state MP.
The State Government last week announced an extra $260,000 for CCW Cooperative, aimed at supporting members to diversify into alternate crops and improve access to information for new revenue streams.
However, Chaffey MP Tim Whetstone said the wine industry’s importance to the region warranted higher levels of support.
“For me, it’s another band-aid,” Mr Whetstone said.
“I would like to take a higher level view of the industry. When Governments don’t know what they are doing, they continue to dribble money into the conversation.
“It’s a $1.93bn industry and it’s not just about grape growers and wineries. There is a significant supply chain also impacted, particularly in the Riverland.
“The wine industry has hit a crossroad on its future.”
Mr Whetstone said growers required more specific information to support adjustment to different crops.
“If I was a grape grower, I would like to know exactly what varieties do our global trading partners want, and what they don’t want is what we need to make the hard decisions on,” he said.
“If the region is going to structurally adjust, we have to support that sector of the industry to adjust to other crops. Exiting the industry as well is a decision for the individual.
“But we don’t know exactly what the oversupply is, or what varieties need to be removed, and how does the industry sell more wine to more trading companies?
“We have to understand consumer demand if we are going to get genuine reform to the industry, we’ve got to deal with the issues.”
Riverland based MLC, and opposition spokesperson for regional South Australia, Nicola Centofanti said “the wine industry has been crying out for assistance for over a year”.
“The announcement of $260,000 for the Riverland, in the context of expenses, amounts to 0.9 per cent of the regional cost of these expenses, not to mention the reinvestment in redeveloping land for diversification of other crops,” Dr Centofanti said.
“When Holden’s Elizabeth plant closed down in 2013, the then Labour State Government immediately committed $50m to ensure the socioeconomic wellbeing of the northern suburbs.
“It is inevitable that growers will be up for expenses to preserve their long term future and that of the Riverland region and the State Government should be assisting with meaningful support to lower barriers to accomplish this end.
“Compare this with the French Government’s assistance to Bordeaux wine producers of ($9,700/ha) to remove unwanted vineyards and the Spanish government providing ($23.9m) to distil excess wine stocks into ethanol, which can be used for biofuel.
“Barker MP Tony Pasin said “we need to keep a productive, sustainable Riverland agricultural sector that drives economic growth in South Australia”.
“The Labor Government’s announcement last month of $3.5m to gather industry data was nothing short of insulting, then the State Government announcement added salt to the wound by offering up a measly $260,000 to assist some 1000 impacted growers,” Mr Pasin said.
“Water buybacks, together with no support of substance for Riverland growers risks delivering an economic wasteland”.
This article appeared in the Murray Pioneer, 24 July 2024.
Related story: New $260,000 package for wine industry
