WINE GRAPES MARKETING BOARD - Riverina Wine Grape by wangnianwu


									              WINE GRAPES MARKETING BOARD
                            For the City of Griffith and the local government areas of
                                     Leeton, Carrathool and Murrumbidgee

                                            MEDIA RELEASE

3 December 2010

Wine Inquiry Outcomes Good for Industry

The Wine Grapes Marketing Board is pleased that the NSW Government Inquiry into the wine grape
market and prices has identified issues that will benefit the wine industry. The recommendations
contained in the NSW Government Standing Committee on State Development report if adopted will
provide a better business environment within the industry and more stability for growers.

“The Board and all the growers that participated in the Inquiry should be congratulated as the
recommendations of the committee will have far reaching consequences that will address some of the most
vexing issues that growers have had to deal with over the years,” Mr Brian Simpson Chief Executive of the
Wine Grapes Marketing Board stated, “At the outset we said this Inquiry was healthy for the industry and the
recommendations back up the concerns that have been raised by growers and the Board over many years.”

“The Board’s focus now will be to see that the recommendations are introduced for the benefit of all industry
participants.” Mr Simpson advised.

The report published on 3rd December 2010 by the Committee follows a process that was commenced by
the Board on behalf of growers in urging the NSW Government to hold an inquiry into the industry to deal
with many of the problems being faced by growers. The Inquiry Chaired by Tony Catanzariti MLC was
announced on 23rd September and received 53 written submissions and held public hearings in Sydney and
Griffith in mid October this year.

The report contains 11 recommendations that if implemented will work to provide restructuring assistance
for grape growers, reviewing of red wine grape colour assessment, early notification of indicative grape
prices that are an accurate source of information for growers, similar terms and conditions of payment by
purchasing wineries, continuation of the Board’s terms and payment function and the introduction of the
mandatory code of conduct.

“Based on these recommendations and particularly number three the Board is now stating that industry
urgently needs wineries to publish grape prices. Growers are currently facing one of the most expensive
growing seasons on record due to the weather and yet wineries have been silent on if they will be paying
more for wine grapes.” Mr Simpson commented. “Growers need to know if it is financially worth caring for a
crop, costs of production could be expected to be greater than $1,000 per hectare higher than an average
season which is basically the extra chemical costs that are being put account at local suppliers.”

Summary of recommendations – (as contained in the report).

Recommendation 1
That Industry and Investment NSW and the Wine Grapes Marketing Board fund a consultant to provide
targeted business advice for grape growers in the Riverina district to assist in responding to industry re-

Recommendation 2
That the NSW Government consult with stakeholders, including other governments as appropriate, to
determine the cost-effectiveness of scientific methodologies for analysing red wine grape colour.

    PO Box 385 GRIFFITH NSW 2680 Phone: 02-6962 3944, Fax: 02-6962 6103 Email:
Recommendation 3
That the NSW Government seek an amendment to the Wine Grapes Marketing Board (Reconstitution) Act
2003 to require wineries to publish by 30 June each year an indicative price list for wine grapes for the
forthcoming season.

Recommendation 4
That the NSW Government consult with the wine grape industry to determine the most effective safeguards
to ensure that the indicative price list system provides an accurate source of information to wine grape

Recommendation 5
That the NSW Government investigate the feasibility of requiring that all wineries offer the same terms of
payment for wine grapes to growers.

Recommendation 6
That in the absence of a mandated Wine Industry Code of Conduct, which includes a terms of payment
schedule, the Wine Grapes Marketing Board's terms of payment function continue.

Recommendation 7
That the NSW government investigate the most appropriate methods to ensure that a winery has paid in full
for the previous season's vintage before it can accept any wine grapes from the next growing season.

Recommendation 8
That the NSW Minister for Primary Industries pursue the introduction of a mandatory Code of Conduct
through the Primary Industries Ministerial Council, including reviewing the effectiveness of penalties for
breaches of the Code.

Recommendation 9
That if the Wine Industry Code of Conduct is mandated, the NSW Minister for Primary Industries ask the
Ministerial Council to review its dispute resolution process to determine its effectiveness.

Recommendation 10
That if the Wine Industry Code of Conduct remains voluntary, the NSW Government investigate the utility of
forming an independent dispute resolution body to monitor and investigate complaints and disputes
concerning price determination and contractual disputes in the wine grape sector.

Recommendation 11
That the Wine Grapes Marketing Board work with growers in the Riverina to develop a model for collective
marketing of grapes.

Brian Simpson Chief Executive Officer 0438 388 828 or 69 62 3944 (during office hours)

    PO Box 385 GRIFFITH NSW 2680 Phone: 02-6962 3944, Fax: 02-6962 6103 Email:

To top