Hugh Schuitemaker, Murray Pioneer
Introducing rules surrounding earlier indicative pricing and accepted tonnages would benefit Riverland wine grape growers, according to senior local politicians in attendance at a recent industry inquiry.
Representatives from local government, industry bodies and wineries last week participated in a senate Inquiry Into Australian Winegrape Purchases Code Of Conduct, held at the Renmark Club.
Chaffey MP Tim Whetstone said suggested changes surrounding a mandatory code – including the earlier release of indicative prices – would provide growers with more business certainty before annual vintages.
“A mandatory code of conduct is a fair ask,” Mr Whetstone said.
“A minimum price is something that I think is not achievable, in my personal view, but an indicative price would be a very valuable tool.
“If there was an indicative price it would give growers a good understanding of if they should, or shouldn’t be growing a crop, or should, or shouldn’t be growing grapes.
“It’s all about transparency. If there was an indicative price, at least it gives the grape-growing industries a little bit of certainty, and they can plan.”
Barker MP Tony Pasin said establishing a mandatory code of conduct would ease some pressure on local grape growers.
“It’s clear the wine grape industry across the nation, but particularly in the Riverland, is incredibly stressed,” Mr Pasin said.
“I’m grateful to my senate colleagues for visiting the Riverland, and considering the potential for a mandatory code of conduct.
“I think the issues relating to the industry are much broader than the mandatory code alone, but a mandatory code that would require earlier price indication, and the obligation to accept the ruling of an independent arbitrator as to price and volume, would be a step forward.
“That being said, the challenges currently being experienced in the Riverland will continue until such a time that the structural imbalance between wine supply and demand is addressed.”
Riverland-based MLC, and opposition spokesperson for regional South Australia, Nicola Centofanti said the inquiry process would help “future-proof the industry, fostering long-term growth, and trust across the (sector).”
“I would like to thank those involved in the senate committee hearings for the time they took to visit our region and listen to affected growers and wineries firsthand,” Dr Centofanti said.
“An inquiry like this one is an incredibly important process that offers a platform for stakeholders to collaborate – ensuring that all voices, from small producers to large corporations, are heard.
“I look forward to reading the committees report and recommendations once it is tabled and released.”
Mr Pasin said measures to directly address the ongoing oversupply of red wine were needed in order for the nation’s wine industry to recover.
“This isn’t an Australian problem, it’s not a problem peculiar to the Riverland… it’s a global problem and in circumstances where red wine vines are being removed from the Nappa Valley, (and) Bordeaux, it’s hard to imagine the Australian wine industry not needing to take similar action,” Mr Pasin said.
“Real action needs to be taken, otherwise what is a very difficult situation may well become catastrophic.”
Further information from the inquiry will be included in next week’s edition of The Murray Pioneer.
This article appeared in the Murray Pioneer, 16 October 2024.