Australian Grape & Wine (AGW) has welcomed the Australian Government’s response to the Senate inquiry into the Winegrape Purchases Code of Conduct, while warning that “significantly greater investment” is needed to address the worsening crisis facing the sector.
AGW chief executive Lee McLean says the message from the wine industry is clear.
“This is a critical moment,” he says, “and we need a stronger partnership [with the Government] to secure a sustainable future for Australian wine.”
AGW supports the Government’s commitment to introduce a mandatory Code of Conduct by 1 January 2027 and its intention to work closely with industry to ensure the Code is fit for purpose.
However, AGW said the response does not go far enough to address the scale of the structural challenges confronting Australia’s grapegrowers and winemakers.
“The introduction of a mandatory Code is an important step in improving transparency and fairness in commercial relationships,” says chief executive Lee McLean.
“But regulation alone will not fix the underlying structural challenges in the sector or the severe financial hardship being experienced across wine regions.”
The Senate Committee’s Recommendation 5 called on Australian Grape & Wine to provide an updated Pre-Budget Submission – something AGW does every year and has already delivered.
“Our latest Pre-Budget Submission sets out a comprehensive, evidence-based package of measures to support the sector through this structural adjustment,” Mr McLean says.
“We have provided Government with a clear suite of policy options and we look forward to seeing meaningful investment in those measures in the upcoming Federal Budget.”
AGW says the Australian wine sector has been under sustained pressure for several years, with conditions “continuing to deteriorate”.
“This is not a short-term downturn – it is a structural challenge that has been building over time and has been exacerbated by a series of external shocks,” McLean says.
“The loss of the China market, global declines in wine consumption, and rising input costs have all taken a significant toll.
“More recently, the Middle East conflict has added further pressure through impacts on fuel, fertiliser and global supply chains.”
McLean says that while the Government’s existing funding commitments – such as the $4.6 million Long-term Viability Support Package and targeted market development initiatives – are welcome, they are not commensurate with the scale of the challenge.
“The level of support currently on the table falls well short of what is required to stabilise the sector and support an orderly transition,” Mr McLean said.
“Without further investment, there is a real risk of long-term damage to regional communities, jobs and the broader agricultural economy.”
AGW reiterated its commitment to working constructively with Government to deliver practical, targeted solutions.
“We stand ready to work with Government to ensure the right policy settings are in place,” Mr McLean says.
“But the message from industry is clear – this is a critical moment, and we need a stronger partnership to secure a sustainable future for Australian wine.”
Photograph: Aerial Hill Park Vineyard. For illustrative purposes only.
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