Senate Rural and Regional Affairs and Transport Legislation Committee, , 6:20:12 to 6:24:54
The hearing shifts to the wine industry, highlighting acute structural distress, excess inventory of 70 million bottles, and high demand for financial counseling in the Riverland.
Topics: Agricultural productivity, Exports
Speakers: Speaker 28, Speaker 18, Speaker 1, Speaker 12
or at another time. >> We can ask the officers. >> One, can you
outcome one unless it's a biocurity matter?
>> No. No, it's not. >> So, are you still seeking the course?
>> I am. And I mean, I'm happy to handle >> I'm happy for you to continue. the rest of you like okay cool. Um uh thank you. Um uh the wine industry obviously we is suffering experiencing some pretty acute structural distress at the moment and um the latest um PSI report shows that um national inventory is extremely high um with excess stock. In fact, I think if you calculate it out, um, we're talking about 70 million bottles of wine or equivalent thereof that is in excess of requirements that's currently in storage. And we've heard through Australian Grape and Wines um, pre-budget submission that um, rural counseling services are experiencing like four times the demand for support for for growers. in my home area of the Riverland um one in four great growers have sought financial counseling support in the last 3 years. So I'm just sort of keen to understand has either the minister or the department been formally briefed by Riverland grape growers about the prices they're currently receiving and in comparison to obviously production costs. Um have you had any briefings or saw any briefings from the
Riverland? I might defer to colleagues from the department side. Senator
>> Senator Pauly, assistant secretary of the food policy branch. I don't think there's been I'd have to take on notice whether there's been a a formal request for briefing uh or briefing provided to the minister by that group. Um but certainly there's been meetings over time and um at least uh 12 18 months ago um a national working group was established to look at the over supply of uh of wine and action was taken was taken with comworth between the comwalth and states and territories um to address some of those concerns that are happening in the industry at the moment.
So what what are the measures that have been put in place?
>> So there was a there was a working group that was established um between the Commonwealth and states and territories um made a number of recommendations which government accepted and then in response to that the Commonwealth government announced a long-term viability support package for the industry which was $4.6 million.
>> $4.6 million. >> Correct. >> How much is the wine industry worth? Uh
the total value of the industry at the moment is six $6 billion in 2425.
>> $6 billion and the industry support package was $4.6 million.
>> That's correct, Senator. And um so that comprised eight um eight parts to that project. So the first of those was the National Vineyard Register.
>> Okay. Can I just ask you about the National Vineyard
Register? >> So it's administered by Wine Australia. Um it's been in development for the last uh 12 months. They've undertaken significant consultation with the industry. Um they're in the process of designing a model for that register. Um so not quite complete yet. Further work to go. Um
>> so when do you imagine that it'll be servicing wine grape wine grape growers
and wine makers? Uh we are hopeful it would be ready um sometime this year perhaps um middle mid mid to late this year noting that there's um further work to do. Wine Australia will have more detailed information on it of course because they are delivering that project. But that was probably one of the key um recommendations of that group and something that we heard consistently from from growers and the wine industry generally um because it gives um it will give growers that um transparency and understanding of uh both demand of the demand sorry the supply side
>> and and look in the longer term obviously it's a it's a very important initiative perhaps um even though wine Australia is not here we might put some questions on notice to them about that but I'm interested to understand. I mean, I've got a situation in in my home area of of of the Riverland, um, where grape growers are, you know, getting $80 for a ton of of grapes and the production costs, you know, are probably in excess of $300 a ton. So, it's a completely unviable proposition. Um, to