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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-05-03 Daily Xml
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WINE EXPOS

Mr VENNING (Schubert) (16:04): Today I want to again raise the parlous position of the wine industry and seek to canvass some solutions that may assist. I would particularly like to speak about the lack of any incentive by the state government to assist or encourage South Australian wineries to participate in wine expos overseas in order to increase our wine exports. With the Australian dollar at a very high point at the moment of $US1.10 it is extremely difficult for our wines to maintain let alone increase market share.

In China there is an upcoming wine show to be held in Beijing from 24 to 26 May. The invitation-only buyers audience will be approximately 10,000, comprised of people who are interested in buying from the top end of the market, upwards of $40 per bottle. Unfortunately, due to the difficulties the wine industry is facing here, difficulties faced by both growers and wineries alike, many wineries simply cannot attend such expos, despite the huge export opportunity they present.

A month or so ago, I met with the minister to discuss this issue, which I appreciated, and I asked whether the government could provide some funds to subsidise wineries to attend the Top Wine China Expo. The minister was unable to assist due to the budget constraints—another opportunity lost because of the economic mismanagement of the Rann Labor government—even though the minister flew to China a few days later. No doubt it would have been discussed with Austrade and consular representatives when he arrived in Beijing.

China is a relatively untapped, huge market in relation to wine, and it would have taken only a little bit of funding to assist wineries to participate in the event. I am certain the return in exports would have been huge. If the government had put some money towards setting up a South Australian premium world wine stand, each participant would have had only to set up their own cubicle in that centre and the cost of getting there, etc. The North China market for premium wine has particular potential, and it is untapped and ripe for Australian premium wines.

I was also disappointed to learn recently that the Australian participation at Vinitaly, the world's largest wine expo, was also non-existent. Over 156,000 registered guests attended the 2011 Vinitaly wine expo, a substantial increase on the number of registered attendees in the previous two years. The expo was also open to the public for a weekend.

The Australian part of this wine expo event was entitled 'Great Australian wine regions and their iconic wines'. This comprised a tasting event and a display by Winestate magazine. The Australian tasting was supported by the Vinitaly staff and professional sommeliers. Vinitaly also supplied Italian-speaking staff to assist with translation during the presentations.

I was most disappointed to hear that there was no Australian participation in the Vinitaly expo, apart from Winestate magazine. All guests at the tasting event and those who visited the Winestate display reportedly expressed concern that they could not arrange business with Australian wine representatives in what is the world's biggest wine event. The lack of government support, either financial or expertise, to assist wineries to attend such wine events will cost the industry dearly and, in turn, our state's economy in the long run. International business will look to other wine-producing companies that are making an effort to attend such marketing opportunities.

New Zealand, Argentina, Israel and Turkey, among other more prominent wine regions, were represented at Vinitaly. Why was our participation so lacking? Surely, the Treasurer could find money in the budget to assist with marketing, coordinating and promoting our wines overseas. It would be absolutely fantastic if South Australia could have a stall at these expos, with wineries from all the iconic wine regions participating. We are renowned the world over—the wine state of international wine. Surely, we should protect this reputation.

As I have said previously, at a time when the industry is struggling, the government needs to step up and assist. If we do not market ourselves, nobody will do it for us and we will lose wine markets and buyers' interest we might be able to capture—markets we have built up and cultivated over many decades. I implore the Rann Labor government to review the support it provides to the wine industry and ensure that finances are expended in a manner that will provide maximum benefit to the industry.

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