Wine Industry Calls for Consolidation of National Bodies

Wine industry stakeholders have told a Federal Senate Committee that national representative bodies, the Winemakers’ Federation of Australia and Wine Grape Growers of Australia, should be consolidated.

The Senate Rural and Regional Affairs and Transport Committee spent 18 months speaking with winemakers, grape growers, representative bodies and other industry stakeholders to produce a report containing 12 recommendations on industry issues, including the Wine Equalisation Tax rebate, private label, the supermarket duopoly and export grants.

The Committee heard from various stakeholders that they would like to see one body created from a merger of the two national wine organisations.

Wine Tasmania submitted that the two national bodies “have extremely limited resources and are struggling to galvanise the industry and be relevant across all segments.”

Accolade Wines said that while the industry organisations generally function well, “the multitude of representational levels is not an effective use of industry resources.”

Industry also voiced concerns about whether or not the bodies have adequate national representation.

The South Australian Government submitted that WGGA is primarily funded by South Australian growers, while Warren Randall from Seppeltsfield Wine told the Committee that “WFA is not supported by the majority of Australian winemakers”.

CEO of WFA, Paul Evans confirmed in an interview with drinks bulletin that WFA and WGGA are currently discussing a possible merger.

“There is discussion about whether it would be better for members to combine and merge, or at least work more closely together,” Evans said.

“We already have a very collaborative relationship. This is about looking at the options to solidify that relationship further.”

Evans said that WFA believes there are good conversations to be had with its sister organisation.

“We’ll continue to have those kinds of conversations in good faith, hoping that there’s a sensible outcome at some stage in the future.”

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