Taskforce to address glut of red wine grapes in Australia

Providing support for the viticulture and wine sector was one of the topics under discussion at the first Agriculture Ministers’ Meeting (AMM) of the year, which was held virtually on Friday, 8 March 2024, with Australia’s commonwealth, state and territory agriculture ministers.

The ministers attending the meeting acknowledged the significant challenges facing wine grape growers, particularly in the inland regions, and noted the work to date of governments to build new markets and provide financial and other support to wine grape growers through the current oversupply of red wine grapes.

They agreed to establish a viticulture and wine sector working group, comprising representatives of the commonwealth, state and territory governments, Wine Australia, Australian Grape and Wine and other relevant groups as agreed by the working group, to provide recommendations to agriculture ministers to address the challenges facing growers.

Australian Grape & Wine CEO Lee McLean has welcomed the formation of a viticulture and wine sector working group.

“Australian Grape & Wine has been encouraging a coordinated and collaborative approach to deal with the challenges our sector is facing and we are pleased ministers have agreed to form this working group,” McLean said.

“We know there are a number of regions experiencing acute financial pressure as a result of supply and demand imbalances, including the Riverland in South Australia, the Riverina in NSW and the Murray Valley in Victoria, and it’s pleasing the group will focus on ways we can work together to relieve these pressures, in these regions.

“Australian Grape & Wine has put a range of options to the Albanese government ahead of the federal budget, including proposals to help rebalance supply, grow demand and boost regional tourism,” McLean said. “These proposals are all aimed at helping Australia’s grape growers and winemakers to find a pathway through the current challenges towards a sustainable and more profitable future.”

The working group will be expected to visit regions most impacted by the oversupply, including the Riverland in SA and the Riverina in NSW, and will report back to agriculture ministers out of session by the end of April 2024. The working group will also propose to agriculture ministers actions to support improvement in the grape and wine sector and its long-term viability by July.

“We look forward to working with ministers, officials and other industry representatives to drive a positive agenda in the best interests of grape and wine businesses,” McLean said.

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