The South Australian Government has developed a comprehensive $109 million wine industry support package to support transition, expand market demand, promote new regional investment and position the state’s wine sector for sustainable long-term growth.
It comes as the state’s $2.4 billion wine industry – which produces 80 percent of Australia’s premium wine and supports more than 90,000 jobs – grapples with global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures.
The $109 million South Australia Wine Industry Transition and Growth Package features a suite of measures including government-backed loans, business support, market promotion and the appointment of a Wine Industry Coordinator.
The package builds upon existing State and Commonwealth Government support, and includes:
Government-backed loans
A $100 million loan scheme will be established to help growers wanting to transition unviable vineyards to more sustainable and higher-value land uses. Eligible growers will be able to access loans of up to $500,000, with no principal or interest repayments required for the first two years of the loan.
Export and market growth
$5 million to extend and expand the Global Wine Growth Program for a further two years to drive international demand for South Australian wine. In addition, a targeted $675,000 advertising campaign will showcase South Australia’s premium food and wine, boosting tourism opportunities.
Waste and inventory support
$2 million to enable government, council and industry collaboration on a waste solution for CCA (copper chrome arsenate) treated timber posts, including seeking to establish regional aggregation and storage sites.
Vineyard transition support
$1 million over two years to provide growers with independent diversification planning advice to achieve sustainable transition outcomes.
Surplus Wine Inventories
$500,000 over two years for assessment and development of industry-led solutions to address surplus wine inventories.
Industry coordination
A new Wine Industry Coordinator will identify and address barriers to an orderly transition and strengthen engagement between industry, government and regional stakeholders.
Planning changes
The Riverland Economic Recovery Joint Amendment will support winegrowers in the Riverland by facilitating housing and employment land, generating additional land use opportunities.
The Wine Industry Transition and Growth Package was developed through consultation with key wine industry stakeholders following a wine industry forum convened by the Premier last month.
Together, the initiatives will help safeguard the sector’s long-term competitiveness while supporting regional economic resilience.
Premier Peter Malinauskas said, “South Australia’s world-famous wine industry is a key contributor to the state’s economy, driving trade, jobs and regional growth.
“It generates $2.4 billion in annual revenue and supports more than 90,000 jobs.
“We have 18 wine regions across the state, with almost 700 wineries and more than 73,000 hectares of vines.
“But the industry is facing significant challenges and we are acting to safeguard its future and support wine grapegrowers and producers.
“This comprehensive support package, developed with industry, will help position our wine sector for long-term competitiveness.
“We are supporting regional economic resilience, ensuring South Australia’s world-class wines continue to be enjoyed both at home and across the globe.”
South Australian Wine Industry Association president Kirsty Balnaves said, “The South Australian wine industry welcomes the Premier’s announcement and the Government’s commitment to supporting an industry that underpins regional communities, creates jobs and contributes significantly to the State’s economy, identity and global reputation.
“Growers and winemakers have been navigating a challenging period of structural adjustment and changing market conditions.
“This package recognises those challenges while investing in the industry’s long-term future.
“We thank the Premier and the South Australian Government for working with industry and look forward to partnering on initiatives that strengthen our competitiveness, support regional economies and position South Australian wine for future success.”
Treasury Wine Estates chief supply sustainability officer Kerrin Petty said, “South Australia’s wine industry is built on generations of investment, innovation and regional expertise, and this support is a boost to the sector’s confidence as it responds to changing global markets and consumer preferences.
“We welcome the Government’s commitment to backing growers, producers and regional communities so South Australian wines such as Penfolds continue to be recognised and enjoyed around the world.”
Photo for illustration purposes only.
Recent Comments