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Farmers seek to shore up contracts
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The South Australian Farmers Federation says it hopes McGuigan Simeon Wines'decision to suspend grower supply contracts does not prompt other wine companies to take similar action, according to ABC News Online. The winemaker had used a "market disruption" clause in contracts to suspend them immediately. SAFF president Jeff Klitscher said the federation was not happy with the winery's actions and will seek meetings with major winemakers to discuss ways of improving supply contracts. Klitscher said the contracts were not tight enough. "It allows one party to get out of it and that doesn't help anybody. "Now, the winegrape growers have probably put in everything they can into their vines this year and then to be told at this late time, it's a heck of a blow to these people," Klitscher said.