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Winegrape purchasing code of conduct to be reviewed by Federal Senate inquiry

Winegrape purchasing code of conduct to be reviewed by Federal Senate inquiry

The Senate Rural and Regional Affairs and Transport References Committee announced yesterday that it will perform an inquiry into the Australian winegrape purchases code of conduct, on which it will produce a report by 28 February 2025.

Simultaneously, the independent impact analysis currently being undertaken by Dr Craig Emerson assessing market function and regulation in the grape and wine industry will continue its investigations, with consultations now open and a draft report expected later this year.

Dr Emerson’s analysis will include public consultation, which is open to the industry and stakeholders from 18 September until 10 October. A consultation paper detailing an overview of the current regulation within the industry and identifying potential failures in the system was released on Wednesday, titled Grape and Wine Sector Regulatory Impact Analysis Consultation paper, which can be viewed here.

Australian Grape & Wine CEO Lee McLean welcomed news of both the Senate enquiry and the release of the public consultation document.

“Australian Grape & Wine is committed to working closely with both Dr Emerson and the Rural and Regional Affairs and Transport Committee throughout these important consultations,” said McLean.

“The timing of the Senate inquiry is interesting, given that it will run parallel to Dr Emerson’s impact analysis,” he added. “We note that the Emerson impact analysis will explore issues across the entire value chain—from the vineyard to the retail shelf. It will also examine and draw upon previous studies into the grape and wine sector, including work by the Australian Competition and Consumer Commission (ACCC), the Senate Rural and Regional Affairs and Transport References Committee, Wine Australia, the Viticulture and Wine Sector Working Group, and relevant university reports.

“We encourage the Senate Rural and Regional Affairs and Transport Committee to similarly draw on this material, which has already been the subject of extensive analysis.

“We see this as a valuable opportunity for the entire sector to engage in constructive dialogue that will help shape a strong, sustainable future for our industry.”

 

Have your say

As part of Dr Emerson’s review, growers, producers, and other stakeholders in the industry are encouraged to provide their input on the existing regulatory systems here.

Minister for Agriculture, Fisheries and Forestry, Julie Collins, encouraged those in the industry to have their say on the grape and wine sector’s current rules concerning fair trading, competitive relationships, contracting practices and risk allocation.

“If you are in the grape and wine industry, I strongly urge you to take part in this consultation process, to help us as a government understand the trading environment from the vineyard to the retail shelf,” said Minister Collins.

“It’s important that a broad cross section of stakeholders helps Dr Emerson identify the key areas where we should be focusing to ensure a fair and functioning grape, wine and retail market.”

Dr Liz Waters, chief operating officer, Wine Australia echoed this encouragement.

“The impact analysis being conducted by Dr Craig Emerson as part of this support package is an important step for the sector and we encourage our levy payers to review the consultation paper released this week and to contribute their feedback to the review before 10 October,” said Dr Waters.

“Wine Australia is committed to a profitable, resilient and sustainable grape and wine sector. We will continue to play our role in supporting the success of the sector, and look forward to the recommendations to come from Dr Emerson’s final report in early 2025.”

Feedback collected from the consultation will inform advice about whether existing regulation could be made more effective, or if additional regulatory or other interventions are warranted to improve the grape and wine market.

The independent analysis will provide recommendations to Government to support the industry’s long-term sustainability.

The analysis follows concerns raised during Dr Emerson’s Food and Grocery Code of Conduct Review earlier this year and consultations undertaken by the Viticulture and Wine Sector Working Group.

For further information and to have your say before consultation closes on 10 October 2024, click here: Grape and Wine Sector Regulatory Impact Analysis – Agriculture hub.

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