The Hon. Matt Canavan, Leader of The Nationals and Shadow Minister for Trade; The Hon. Darren Chester, Deputy Leader of The Nationals and Shadow Minister for Agriculture, Joint Media Release, 30 April 2026

The Albanese Government is ignoring warnings of a deepening crisis in Australia’s wine sector, which is adding to the social and economic pressures on growers.

Leader of The Nationals and Shadow Minister for Trade Matt Canavan and Deputy Leader of The Nationals and Shadow Minister for Agriculture Darren Chester have called on the Australian Government to have another look at whether the excess wine stored in Australia could be turned into ethanol to help Australia’s fuel supply crisis.

Senator Canavan and Mr Chester met with industry leaders to address structural oversupply, rebuild demand, and support growers and winemakers facing prolonged financial distress.

“The challenges facing the industry and the government’s response to the Inquiry was effectively out of date on the day it was tabled,” Mr Canavan said.

“The government took 12 months to respond to the recommendations and failed to understand the urgency of the situation. Now having taken a year to respond to an urgent crisis, the Government’s recommendations are late and out of date.

“The Government has dismissed calls that the glut of wine sitting in vats could be turned into ethanol during a fuel crisis, by quoting a report that was done almost two years ago. If the Government has not noticed, Australia’s fuel supply situation has changed a bit in the past two months.

“The Government should heed the industry’s calls and urgently review whether Australia’s excess wine stores could help alleviate our fuel supply crisis. This could kill two birds with one stone.”

The wine sector is facing a structural crisis in the areas of Murray Valley, Riverland and the Riverina, with the industry seeking a solution for 262 million litres of wine in storage.

Prior to 218 per cent China tariffs, Australia was exporting $1.2 billion in wine exports to China each year. Now it is just $728 million in the 12 months to March.

Mr Chester said the industry is also seeking a solution for oversupply, which could be re-purposed for fuel.

“The government should be supporting additional studies to see if it is viable to re-purpose the surplus wine for fuel and it should be listening to the industry leaders who have grave concerns for the future of the industry without immediate action,” Mr Chester said.

“The Labor government has simply been too slow to act.”

Australian Wine and Grape Chief Executive Lee McLean has told the Albanese Government that growers, winemakers and families are under levels of stress that haven’t been seen in generations.

“If government delays, the costs don’t disappear. They re-emerge as business failures, abandoned vineyards, mental health crises and long-term regional decline,” Mr McLean said.

“The cost of inaction will be far greater and borne by regional Australians least able to absorb it.”