Wine research gives excellent return on investment

Investing in research into wine yeast pays off, new research shows. An independent study commissioned by the Grape and Wine Research and Development Corporation (GWRDC) has found that $1 spent on research into improving the performance of yeasts generates $7.40 in returns to winemakers.

GWRDC commissioned a cost-benefit analysis of its research to develop new yeast strains and new techniques to manage yeasts during fermentation. The $7.40 return on investment is one the rural sector can be justifiably proud of, Barnaby Joyce, the Minister for Agriculture, said.

“It is important to measure the outcomes of R&D investment to ensure precious dollars benefit levy payers and the Australian community through tangible results that increase productivity and, in turn, profitability,” Minister Joyce said.

“This cost-benefit analysis of seven GWRDC-funded projects shows the crucial role well-targeted R&D can deliver for our rural industries.

“These seven projects cost about $15 million over seven years and are expected to deliver a net value of more than $475 million in the next 30 years to those who adopt the technologies.”

Yeasts play an essential role in wine production - far more than just helping with fermentation. They help give a wine its character, aroma, flavour and mouthfeel. One of the GWRDC projects involved breeding new yeast strains that will enhance naturally fruity or savoury flavours in wines and others that will enable winemakers to better manage challenging ferments.

“Each year, Australian grape growers and winemakers pay levies that are matched by the government and then invested by the GWRDC in research, development and extension,” Minister Joyce said.

“This independent report shows their effort is well targeted and has the potential to make a real difference when adopted by winemakers.”

From 1 July, R&D functions will be delivered by the new Australian Grape and Wine Authority, which is formed through the merger of the Wine Australia Corporation (WAC) and the GWRDC.

“This government is committed to boosting Australia’s R&D investment in rural research and development corporations (RDCs) by $100 million so our primary producers can continue to generate quality produce and products - as well as expand and increase their productivity and profitability,” Minister Joyce said.

“The additional $100 million investment will start from 2014-15 and is on top of around $250 million the government already provides each year to Australia’s 15 rural research and development corporations through matched funding.”