Australia's wine sector has expressed support for a newly formed, government-backed task force aimed at addressing oversupply, increasing demand, and enhancing regional tourism amidst ongoing financial pressures.
President Anthony Albanese’s administration announced the creation of a viticulture and wine sector working group following a meeting of the Commonwealth, state, and territory agriculture ministers on Saturday (9 March).
Wine Australia and Australian Grape and Wine will collaborate with representatives from the Commonwealth, state and territory governments, and other relevant groups as agreed by the working group to form this task force. The objective is to provide actionable recommendations to agriculture ministers to address the challenges confronting growers.
Lee McLean, CEO of Australian Grape & Wine, expressed satisfaction with the ministers' decision to establish the working group. "Australian Grape & Wine has been advocating for a coordinated and collaborative approach to tackle the challenges our sector is facing, and we are pleased that ministers have agreed to form this working group," McLean stated.
He further elaborated that Australian Grape & Wine had already presented a variety of options to the Albanese government ahead of the Federal Budget, including proposals to rebalance supply, stimulate demand, and promote regional tourism.
"We recognize that several regions, including the Riverland in South Australia, the Riverina in NSW, and the Murray Valley in Victoria, are experiencing acute financial pressures due to supply and demand imbalances. It is encouraging that the group will focus on collaborative efforts to alleviate these pressures in these regions," McLean added.
The oversupply of Australian wine, exacerbated by China’s punitive tariffs on exports in 2021, has been an ongoing challenge. Although there is optimism about a potential deal to end the tariffs by the end of this month, the Australian wine industry may still face several years of recovery due to long-term trading disruptions.
The working group is expected to visit the regions most affected by the oversupply situation and report back by the end of April 2024. By July, the group is anticipated to propose actions to support the improvement and long-term viability of the grape and wine sector.
McLean emphasized that the formation of the task force reflects the strong working relationship Australian Grape & Wine has developed with the Australian Government. He highlighted that the collaborative efforts between government and industry bodies will "drive a positive agenda in the best interests of grape and wine businesses."
Source: The Drinks Business