Lobby group welcomes AWRI endorsement

This is an open letter from the Concerned Elders – sent to us by chair Louisa Rose – “in support of the Australian Wine Research Institute, Wine Australia and a prosperous and global Australian wine industry”.

In mid 2023 a group of ‘Concerned Elders’ (CE) became aware of the actual and planned diminished funding of the Australian Wine Research Institute (AWRI) by Wine Australia.

The CEs represent over 30 current and former leaders of the wine industry.

Qualifications in the group include owners of small, medium and large wineries and wine business, grapegrowing, winemaking, R&D, industry analysis and media.

Many of us have significant experience serving on, in some cases chairing, industry Boards such as the AWRI, Australian Grape & Wine (AGW) and its predecessors, and Wine Australia and its predecessors.

We are united in our deep concern of the ongoing defunding of the AWRI, and the potential loss of decades of grape and wine knowledge that is vital to the future of our industry.

The core of the problem is that there are too many non-industry people making decisions about the wine industry and its assets.

These people are disconnected to the realty of the wine industry, and their decisions are undermining one of its core assets – the AWRI – an asset that is vital for our industry to thrive.

The CEs have been working transparently to bring this matter of the AWRI funding to the attention of the wider grape and wine community and seek to reverse/adjust what we believe to be a poor strategic decision by the Board of Wine Australia, notwithstanding the financial challenges of reduced levy and export income.

The Australian wine community has a globally unique research, extension and education model through its industry owned and operated AWRI, a model that is the envy of the rest of the world.

For 70 years the AWRI has been the major contributor to the technical success of the Australian wine community, conferring a distinct competitive advantage in global markets.

The AWRI is uniquely placed to lead and support the innovation(s) necessary to both address the challenges of today and enable the Australian wine community to adapt to an evolving and warmer future.

The CEs welcome the recent ‘Position statement regarding the Australian Wine Research Institute’ from the Board of AGW, that ‘strongly endorses the important role the Australian Wine Research Institute (AWRI) plays in supporting our Australian grapegrowers and winemakers. AGW acknowledges the foundational position the AWRI holds as an industry-controlled organisation and the outcomes it has delivered over the past 70 years.’

The CEs also welcome AGW’s stated ‘expectation that:

Wine Australia and AWRI resolve the short-term funding impasse by the end of September 2024 by providing funding to AWRI to enable it to maintain its level of operation for FY25 (more than the $5.5 million we understand is currently offered).
The incoming Wine Australia Board prioritises the development of a transparent and comprehensive funding model for R&D activities, addressing both short-term and long-term capacity and capability considerations, and including an assessment of return on investment.’

The CEs are hopeful that the incoming WA Board will have a majority of directors with broad and significant industry experience and knowledge.

We also hope that the incoming Board will, in conjunction with AGW and its Research Advisory Committee, be able to collaborate with the AWRI and Australia’s other R&D providers to ensure that world leading research is done for now and the future, and the most effective and efficient use of industry levies is achieved.

We want to state categorically that the CEs are unequivocally supportive of a strong and vibrant Wine Australia.

We admire the work and commitment of their global team of employees who provide a myriad of services across market insights, marketing and market access, regulatory and compliance, export controls, education, research adoption, collaborative events and promotion – among many tasks.

The CEs’ concerns are related to the AWRI funding issues* and we urge the Australian grape and wine community to continue to fully support team Wine Australia for the greater good.

* The CEs also believe that revised, fairer and sustainable levy reform is overdue, but that is not in Wine Australia’s remit – but that of AGW. The CEs also recognise the importance of and anticipate the evolution of a National Vine Register as recommended by the recent Ministerial Working Party and funded by the Federal Government Grape and Wine Sector Long Term Viability Package.

– Louise Rose, chair, Concerned Elders

AGW Position Statement

This is the Position Statement released by Australian Grape & Wine regarding the Australian Wine Research Institute on Thursday 12 September 2024:

Australian Grape and Wine Inc (AGW) strongly endorses the important role the Australian Wine Research Institute (AWRI) plays in supporting our Australian grapegrowers and winemakers. AGW acknowledges the foundational position the AWRI holds as an industry-controlled organisation and the outcomes it has delivered over the past 70 years.

In light of current industry conditions which necessitate cost reductions and workforce adjustments across the sector, AGW anticipates that all of industry (including industry bodies) will respond to these challenges appropriately. In the current commercial environment, AGW expects that R&D levies should be expended in a way that best serves both the short-term and long-term needs of the industry. This expenditure should reflect the priorities expressed in the One Grape and Wine Sector Plan and the advice of AGW’s Research Advisory Committee (RAC).

It is also AGW’s view that the long-term interest of the industry is best served by the maintenance of sustainable funding of the AWRI to provide research and support services (including critical regulatory support) to the industry. Given the imminent change to the Wine Australia Board, AGW expects that an agreed level of funding for FY25 be settled by the end of September 2024. This level of funding should enable AWRI to continue to provide these services in the short term (and in the long-term interest).

AGW urges the incoming Wine Australia Board to deal with the allocation of R&D activity in both the short-term and long-term, as a matter of priority. In doing so, AGW’s expectation is that the allocation of resources to R&D providers is conducted with the highest level of probity, transparency, and best practice governance, by Wine Australia.

It is very disappointing that this situation has not been resolved. The expectation of AGW and the industry it represents is that levy funds are invested where they will provide the greatest return to the industry that pays them.

It is our expectation that:

Wine Australia and AWRI resolve the short-term funding impasse by the end of September 2024 by providing funding to AWRI to enable it to maintain its level of operation for FY25 (more than the $5.5 million we understand is currently offered).
The incoming Wine Australia Board prioritises the development of a transparent and comprehensive funding model for R&D activities, addressing both short-term and long-term capacity and capability considerations, and including an assessment of return on investment.

Winemakers, growers should be ‘deeply concerned’ about the AWRI