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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-04-09 Daily Xml
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Riverland Wine Industry Blueprint

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (14:51): I seek leave to make a brief explanation before asking the Minister for Primary Industries a question regarding the Riverland Wine Industry Blueprint Implementation Plan 2024—Synopsis.

Leave granted.

The Hon. N.J. CENTOFANTI: I wrote to the minister on 10 July 2023, suggesting a plan to enable growers wishing to exit the wine sector to do so with dignity and suggesting ways that might support growers wishing to continue and diversify into other crops. I also wrote to the minister on 11 September last year, encouraging direct discussions with growers to accurately gauge the impact of the current wine sector downturn, as I had heard many growers state the urgent need for an immediate package to ensure their viability.

The Riverland Wine Industry Blueprint Implementation Plan 2024—Synopsis states the need to deliver immediate and short-term adjustment and support in the way of: one, exit packages of $4,000 per hectare to remove vines—up to 3,000 hectares across the region; two, EPAs or council to facilitate temporary storage of posts while Wine Australia completes disposal project; and, three, support for both crop diversification and efficient land management practices, alongside facilitating the subdivision of house blocks into smaller allotments to enable land to remain in agricultural production. My questions to the Minister for Primary Industries and Regional Development are:

1. What plans does the government have in facilitating the transition of willing growers to alternate sustainable crops?

2. Will she commit in this house to funding an exit package of $4,000 per hectare to facilitate growers wishing to exit the wine sector, as asked for in the Riverland Wine Industry Blueprint Implementation Plan 2024—Synopsis?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:53): I thank the honourable member for her question, particularly the very last part of the sentence where she included the word 'synopsis' to indicate that the document she is referring to was the synopsis document that has not necessarily been endorsed by broad stakeholders.

In terms of the overall issue, I think what needs to be very well appreciated and I think is appreciated by many is that the response to this wine industry crisis is multifaceted. We have talked on a number of occasions about the fact that there is a global oversupply of red wine.

Members interjecting:

The PRESIDENT: Order!

The Hon. C.M. SCRIVEN: Mr President, the members opposite clearly don't want to hear an answer, because I am only probably 30 seconds in and they are yelling out. I ask that, if they want an answer, they listen in silence.

The PRESIDENT: Minister, I will try to give you as much protection—

Members interjecting:

The PRESIDENT: Order! I will try to give you protection. Members will listen in silence. Minister, complete your answer, please.

The Hon. C.M. SCRIVEN: Thank you, Mr President. It is good to have the opportunity to commence it. As I mentioned, there is a global oversupply issue. This is something that has been building for a long time, exacerbated of course by the very difficult issues that proceeded from the imposition of Chinese tariffs.

Following some excellent work from the Albanese federal government, and visits by the Prime Minister last year, by our Premier in September last year and then of course I myself was able to visit last month, we are very pleased that the tariffs on bottled wine from Australia have now been lifted. This is a particularly important part of stabilising the industry. It is only one part, but it is a very significant part.

I have been asked on a number of occasions: how will this benefit the industry and the Riverland in particular? How soon will these matters be resolved? I think I have been very, very frank, including on Riverland radio just this week, in saying that the multifaceted nature of the problem means that there is a multifaceted nature of response. It is absolutely very good news in regard to the lifting of the tariffs. It is very significant for all of our wine industry across the state, including the Riverland. However, it won't solve all of the problems overnight, and indeed it won't solve all of the problems.

What we do need to do is make sure that we maximise the benefits that do come from that. In that regard, the state government has announced a $1.85 million China engagement support package for South Australian wine businesses. It was through the concerted efforts of both the federal and state government that the trading relationship with China has been improved. The re-engagement package will be rolled out over the next two years to June 2026. Really important parts of the package include the South Australian wine industry being provided with in-market insights and capability building to effectively re-enter the China market in a risk-controlled manner. The package comprises five key components:

two-way market activation and immersion;

promotional marketing and communication campaigns;

a wine export adviser based in country;

technical cooperation; and

exporter capability building.

To support the two-way market activation and immersion, the Department for Trade and Investment and its partners will facilitate opportunities for wine exporters to attend key in-market events in China, both this year and next year, as well as coordinate trade familiarisation visits for leading Chinese wine importers to experience South Australia's wine regions.

Our world-class wine offering will be promoted to trade and high-end consumers in China through multiplatform marketing and communication campaigns aligned to peak consumption periods, including key trade events and celebrations. I can certainly provide additional information on that program as well.

Also, I was very pleased to successfully move at the last national meeting of agriculture ministers—that's all state and territory ministers and the federal agriculture minister—for a national approach to the issue. It should be clear to anyone that if, for example, one region or one jurisdiction was to implement something that would reduce the plantings of red wine grapes, and another jurisdiction was to increase the number of plantings, that sort of activity would be counterproductive. It certainly wouldn't benefit any of the growers. So it was really important that we did have that kind of national approach.

We have established a national working group with South Australia as the lead. They have also already visited the Riverland, the Riverina and Mildura, and they have been able to engage directly with those in the industry, including growers, to be able to present to that working group. That working group is looking at the issue across the nation, including of course across the state. The Riverland is very hard hit, but this is an issue that impacts other wine areas as well.

We have also announced an extension of the vineyard resting trial, the Ethephon trial, which is a rebate that can be accessed by red wine grapegrowers. They can save up to $2,000 per hectare in input water and management costs in their vineyards through a trial that is being undertaken across South Australia. A further year's extension of that is one more thing that we are able to do and are doing. Over the weekend, I was pleased to meet with a number of growers and other stakeholders within the Riverland region and to talk about these and other programs and the assistance being provided.

In terms of the specifics that the member opposite is suggesting, I think that is where the work needs to be done, on that national working group, to see if there is to be a package and what the nature of that should have that doesn't have unintended consequences and is counterproductive, which of course would not benefit any of our growers.

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