The cool climate wine elitists are under attack by the industry’s major wine producers from warmer irrigation areas.
Wineries and vineyards in the Riverina in New South Wales, Victoria’s Sunraysia and the Riverland in South Australia are seeking a greater say in how the industry is controlled.
In a major attack on the government authority Wine Australia, the Australian Commercial Wine Producers (ACWP) has taken its complaints to the Federal Minister for Agriculture Forestry and Fisheries, Murray Watt.
Underlying this major dispute is a belief that small and boutique wineries are receiving too great a share of marketing and research budgets.
The ACWP is seeking to be formally recognised as a declared representative body as provided for by the Wine Australia Act (2013). It believes it is not being adequately represented by the Australian Grape & Wine Incorporated (AGW) which is the the national sector body that represents Australia’s grape and wine producers in dealings with Wine Australia.
ACWP chair Bill Moularadellis says members of the ACWP contribute over 60% of Australia’s wine production, and a similar proportion of the mandatory wine grapes levy.
“We seek equitable status with Australian Grape and Wine, whose members contribute less than 25% of the industry’s total production and levy revenue,” said Moularadellis.
“AGW no longer has the industry mandate to continue to exclusively represent the interests of all Australian producers and it certainly does not have the moral authority to convene the R&D and Marketing Advisory Committees which advise Wine Australia’s strategic priorities.”
“It is fair and just that members of ACWP have at least an equal formal voice in setting the directions and priorities of the industry especially at this time when the industry is facing its worst crisis in more than a generation.”
Moularadellis added that discussions pertaining to more equitable representation within the AGW had proven “disappointing”, and that it would be difficult for the Minister not to accept ACWP’s moral case for equitable representation based on the information presented.
“AGW has the sole responsibility for convening the R&D and marketing committees that provide the direction to Wine Australia in the application of our valuable levies. These committees have failed over a very long period of time to provide accountability of outcomes and value for all levy payers.
“With levy total contributions declining due to lower industry production and exports, it is unlikely that any industry participant of any size or scale, has been satisfied enough with the value they have received from their levy contributions that they would agree to pay more.”
Lee McLean, chief executive, Australian Grape & Wine expressed disappointment at the Mouradadellis statement. There were, he said, “more serious issues” to be addressed within the industry.
In his tatement McLean said: “We’ve been focused on, amongst many other things: working with Government to find a pathway to resolving trade impediments with China; seeking alternatives to costly and ineffective Container Deposit Scheme proposals; protecting Australian producers’ rights to use the grape variety name Prosecco; addressing the concerns of grape growers in the current oversupply situation; and countering anti-alcohol group claims that Australian winemakers should apply additional health warning labels on their products.”
