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Wine industry catastrophe?

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Hugh Schuitemaker, Murray Pioneer

Peak representative bodies say the Riverland is at risk of “long-term economic” catastrophe, unless direct support is provided for the South Australian wine industry.

The Advertiser on Monday reported local grape growers were “grappling with one of the worst crises to hit the industry”.

Riverland Wine general manager Alex Cannon-Leyson said local grape growers were unable to rely on government financial support.

“It has been made very clear to Riverland Wine that no vine pull or exit support is on the table and that there will be no assistance for the sustainable clearing of blocks from State or Federal Government,” Ms. Cannon-Leyson said.

“We also understand that there is currently no support planned to mitigate the biosecurity risks posed by unmanaged vineyards.

“Riverland Wine is continuing to urge our members to make balanced decisions heading into vintage 2026, while also advocating for urgent, targeted assistance to rest vineyards, manage climbing input costs and support transitions to alternative crops.”

However, Ms. Cannon-Leyson said Riverland Wine was still highlighting the need to support growers in transitioning to different crops.

“Feedback from our members suggests the current (Regional Investment Corporation) loan framework is not delivering the outcomes needed on the ground,” she said.

“We are strongly advocating for the introduction of low-interest loans and direct subsidies to enable growers to diversify and adapt sustainably.

“Without such support, the region risks catastrophic long-term economic and environmental decline.”

Australian Grape and Wine chief executive Lee McLean said consideration of potential socio-economic risks could decrease the risks seen in previous vine pull schemes.

“Our industry is facing an incredibly difficult period, with many growers under enormous pressure,” Mr McLean said.

“What we want to avoid is a situation where people are forced out of grape growing because they have no other option.

“A well-designed, carefully considered support scheme could help smooth this transition, particularly for older growers approaching retirement, allowing them to exit the industry with dignity and some financial security.”

Mr McLean said the integration of “stronger rules for grape purchasing” was also vital for industry sustainability.

“Dr Craig Emerson has recommended a mandatory code of conduct, which we welcome, but it is critical that growers are directly involved in shaping the code to avoid unintended consequences,” he said.

“With the right design, such a code – including fair and transparent payment terms, earlier indicative pricing, and effective dispute resolution – would give growers greater certainty and the ability to make business decisions with confidence.

“If implemented, it could be in place by the 2027 vintage.

Murray Pioneer 27 August 2025

This article appeared in Murray Pioneer, 27 August 2025.

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