$109m funding for South Australia's wine industry

The South Australian Government has announced $109 million in funding to help the state’s $2.4bn wine industry transition through a period of global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures.

Building upon existing state and federal government support, the South Australia Wine Industry Transition and Growth Package features a suite of measures including government-backed loans, business support, market promotion and the appointment of a Wine Industry Coordinator.

Australian Grape & Wine has welcomed the South Australian Government’s support package and called on the Australian Government to work with its state government counterparts to match the commitment nationally.

“This is a significant and very welcome commitment to an industry undergoing an incredibly difficult period of structural adjustment,” McLean said.

“The package includes $100 million in government-backed loans to support vineyard transition, $1 million in vineyard transition and diversification support for growers, $2 million to develop solutions for the disposal of CCA-treated timber posts, and $500,000 to develop industry-led solutions to address surplus wine inventories. It also includes an additional $5 million to extend and expand the Global Wine Growth Program for two years, a $675,000 advertising campaign to promote South Australian food and wine, and the appointment of a new Wine Industry Coordinator to work with industry and government through the transition.”

The funding package was developed through consultation with key wine industry stakeholders following a wine industry forum convened by the SA Premier last month.

“South Australia produces around half of Australia’s wine grapes and half of our bottled wine, so this investment will make a real difference,” McLean said.

“But the challenges facing our sector do not stop at the South Australian border. The other half of Australia’s grape growers and winemakers are facing many of the same pressures and are equally deserving of support.

“We are calling on the Australian Government to work with their state government counterparts to match South Australia’s commitment and ensure equivalent support is available to grape growers and winemakers across the country.”

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