The Export Market Development Grant (EMDG) program is on hold. Just when the Australian wine industry needs it most. Industry analyst Marc Allgrove reports.
Austrade’s Export Market Development Grant program supports small to medium Australian enterprises to promote themselves globally, developing awareness and demand for Australian products in markets around the world.
The grants are matched funding – recipients must invest an equal amount as the monies received, doubling the impact and reach businesses or regional associations could otherwise achieve.
The portfolio of eligible activity is broad-ranging from maintaining a representative in a foreign country, travel to market, promotional material development and the supply of samples.
Austrade’s website states that since inception in 1974, the program has helped more than 51,000 businesses in more than 180 countries.
Its endurance for over half a century is testimony to its effectiveness and its value to Australian industry.
It is therefore counterintuitive that at a time of arguably its greatest need and potential impact, particularly for the wine industry, the EMDG program has been suspended for the current financial year.
In February a collective of regional wine associations from across Australia put a unified voice to Canberra.
Their request: “That the Australian Government urgently reconsider the gap in EMDG program funding… to cover expenditure incurred in financial year 2024-25 and not abandon export support for the Australian wine industry just as its key export market (China) is poised to reopen.”
This statement was contained in a letter to Trade Minister Don Farrell.
A McLaren Vale-based industry insider said, “No EMDG is super unhelpful if we are supposed to be getting out and about internationally to sell our wares.”
The updated One Grape & Wine Sector Plan calls for unity, collaboration and action, while charting a high-level way forward for the industry and the proposed responsibilities for its delivery.
Advocacy, data, support and compliance remain the priorities for national representative bodies with the emphasis on action weighted heavily towards regional associations and producers.
The plan calls on state and regional grape and wine associations, along with grape and wine producers, to collaborate and share stories, to implement regional promotion initiatives and to tailor market strategies and participate in them.
Ultimately to build the industry through stronger market presence, enhanced perception and greater profitable sales.
Barossa Australia CEO Scott Hazeldine says, “The EMDG program over the past few years has supported and maintained several initiatives including the work of our Asian market manager, in-market visits and events and the development of the Barossa Wine School Ambassador network, all of which have allowed the Barossa to be visible, engaged and exploring new and established opportunities in both developing and more established markets around the globe.
“The lack of additional market support has the propensity to reduce the projects and programs we can engage in and dent the momentum at a crucial time for the industry and the region.”
It is therefore apparent that we have a convergence of need, belief and willingness that simply requires support to deliver, and yet at this time that very tried, tested and effective support has been suspended.
Austrade advises that the next EMDG round “is likely” to open in late 2024 or early 2025 subject to the strategic refocus of the program.
There is however no guidance as to the context that the refocus will provide nor the eligibility criteria, only that the grants will cover eligible expenditure incurred in FY25-FY26.
Austrade’s response goes on to say that it “will assess applications and issue grant agreements to eligible applicants prior to the start of the 2025-26 financial year”, and that they “may pay successful grantees all or some of their grant at the start of the financial year. This provides Government support earlier, before grantees spend their own funds.”
The intent to support industry through the extension of the program is evident and welcome, yet it doesn’t lessen the impact of the lack of funding during the current hiatus, at a time when the Australian wine industry needs it most.
At a time of great upheaval and review, simple actionable and effective deliverables should be supported.
The reinstatement of the EMDG program for FY24-25 would be a clear demonstration of this support.
The Australian wine industry – as communicated by the collective signatories on the letter to Minister Farrell – are not looking for a hand out, rather a leg up.
They want empowerment over provision.
Their message is simple – if you like what we are doing, help us to do what we do.
• Marc Allgrove is director of Evans + Ayers. Email mallgrove@evansayers.com.au.
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