Dr Craig Emerson has been appointed to lead an independent impact analysis of the wine and grape sector’s regulatory options concerning fair trading, competitive relationships, contracting practices and risk allocation.

This independent analysis was announced by the new Federal Minister for Agriculture, Fisheries and Forestry, Julie Collins on Friday last week, following concerns raised by the grape and wine sector in the Food and Grocery Code Review, and through consultations undertaken by the Viticulture and Wine Sector Working Group.

The analysis is part of the $3.5 million support package announced by the Federal Government in June, to be delivered by Wine Australia, to support the long-term viability of the sector.

CEO of industry body Australian Grape & Wine (AGW), Lee McLean, expressed strong support for the review, emphasising its potential to strengthen the industry and ensure its future sustainability.

“We welcome Minister Collins’ announcement of the impact analysis, which comes at a critical time for the Australian wine industry,” said McLean. “We know many are doing it tough at the moment and this analysis will allow industry and government to work together to contemplate how we can drive a more healthy and sustainable value chain in our sector in the future.”

Fair trading and equitable relationships between all stakeholders are essential for the health and sustainability of the Australian wine sector, AGW noted.

“A more transparent and balanced marketplace will benefit not only producers and retailers but also consumers, who ultimately want access to high-quality Australian wines at competitive prices. We look forward to working with Dr. Emerson to make sure his advice to government recognises the complexities of the supply chain and reflects commercially viable solutions that drive the long-term growth and success of our industry,” concluded McLean.

Dr Emerson’s report will examine whether there is market failure in the grape and wine sector and provide advice about regulatory or other interventions.

“We know our grape and wine sector has faced some very tough times,” said Minister Collins.

“That’s why our government has worked hard for the industry to open new markets for trade diversification like India, the United Kingdom, Thailand and the reopening of China.

“While the reopening of the China market is a great step forward for the industry, there is still work to be done in response to the oversupply of wine and to understand the general trading environment for grapegrowers and wine makers.”

“Following the completion of the analysis, the Australian Government will consider Dr Emerson’s recommendations to ensure a fair and functioning wine, grape and retail market.”

Grapegrowers, wine makers and retailers will be invited to have their say on this issue. Information on how to participate will be shared through Wine Australia and the Department of Agriculture, Fisheries and Forestry in the coming weeks.

Australian Grape & Wine encouraged all stakeholders in the industry to engage with the process and contribute their perspectives to ensure a comprehensive and constructive outcome.

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