The devastation of drought and frost conditions to the grape and grain industry is now the focus of a Senate enquiry.
Grape and grain growers across South Australia have been hard hit by unprecedented frost damage in particular, which has resulted in the potential impact of growers and winemakers seeing a reduced annual crop.
Concerns for reduced financial return is the focus of most industry conversations and action.
The need for an Australian wine grape purchases mandatory Code of Conduct has been brought to the direct attention of the Federal Senate, which may form part of the protection for every grape grower and winemaker, depending on what is in a mandatory code, if approved.
Jason Perrin, a grape grower in Barmera, took the plight of the industry to the doorsteps of parliament after frustration of what he states as a ‘talk fest’ has continued for almost five years, with an ACCC Review in 2019 and follow up report in 2021 into systemic issues within the wine grape industry nationally.
The review includes whether a mandatory code was needed to replace the current voluntary code, which has been in place since 2008.
“As the industry has become more corporatised in the last few years, growers have been put under increasing pressure by wineries,” Mr Perrin said.
“Quite unfairly, whenever a winery, particularly the corporate wineries have needed to improve their bottom line, they slash the prices of grapes paid to the grower.”
Mr Perrin said a mandatory code would be an insurance policy for all parties, single growers, grower groups and winemakers.
Currently the Voluntary Code is a 15 year old “gentlemen’s agreement”, offering no support when there are contract, pricing or payment issues.
“The grower has no choice, no regulatory body to protect us,” Mr Perrin said.
“So we remain price takers and continue to be the ‘fall guys’ at the bottom of the corporate shark tank.”
The expert determination process lists the ACCC as the regulatory authority – the ‘big stick’ arbiter – for such cases, yet the ACCC does not intervene in Voluntary Codes.
“This misinformation, and false sense of security, should have been corrected years ago,” Mr Perrin said.
“Such systemic issues have had five years of talk fest but many issues that place grape growers at risk with the only recourse being going to a lawyer, funded by the grower.”
Jim Caddy, chairperson of the Inland Wine Regions Alliance Inc, and his committee lobbied with the ACCC from 2019 to 2023 for change.
It recommended the industry needed a mandatory code. This was conveyed to the ACCC in October 2023.
After further investigations, Mr Perrin contacted South Australian Senator Barbara Pocock, outlining some of the significant issues grape growers were facing.
Senator Pocock was instrumental in helping with procedural guidance to create the submission to the Senates Rural, Regional and Transport Committee requesting the need for a mandatory code be placed on the agenda for 2024.
In August, Mr Perrin was invited as a participant in a closed senate hearing. The Senate agreed to take the recommendation to the Federal Senate, which resulted with an agreement to create an enquiry into the wine industry nationally.
The Senate Committee will visit South Australia to take witness statements and hear directly from grape and grain growers in the regions.
Witness statements and direct presentations to the senate enquiry will be treated with strict confidentiality.
A report into the wine industry conducted by Professor Craig Emerson, who conducted the report into the powers of supermarkets, will also be incorporated into this Senate Enquiry.
Tas Larnach, committee secretary for the senate enquiry, advised the process and report was to be completed by February 28.
Some of the terms of reference for the report will include the structure of, and any inequities in, the Australian wine grape and wine processing market; the adequacy of wine grape and wine industry representation at regional, state and national levels; policy and regulatory options to improve market competition and address any inequities, including the potential benefits and limitations of a mandatory code.
The Senate Committee is inviting all stakeholders including grape and grain growers to make a submission addressing some or all of the terms of reference by close of business Friday, October 18. Submissions can be made via email to rrat.sen@aph.gov.au or PO Box 6100 Parliament House, ACT, 2600.
