Grape growers being left hanging

Grape growers have welcomed a competition watchdog report that recommends price transparency and faster payment.

Grape growers have welcomed a competition watchdog report that recommends price transparency and faster payments, amid claims some winemakers are black-banning growers who complain about bills not being paid and price fluctuations that are forcing them to the wall.

In a study released on Tuesday, the Australian Competition & Consumer Commission made 10 recommendations to improve the efficiency and fairness of wine-grape markets, saying contracts and pricing transparency “must improve”.

“We remain concerned about harmful market practices we have uncovered during the past 12 months, which stem from the bargaining power imbalance that exists between winemakers and growers,” said ACCC deputy chairman Mick Keogh.

“Our final recommendations include measures to address this imbalance between grape growers­ and large winemakers, as well as ways of boosting price transparency.”

One recommendation was that winemakers phase out long-term payment periods in the contracts with growers and that large winemakers make payment within 30 days of delivery.

In addition, the ACCC said winemakers should review their contracts with growers and flagged potential enforcement action against traders whose contract terms are deemed to be unfair to grape growers.

“Some contract clauses we have seen, such as lengthy payment terms and unilateral rights for winemakers to vary agreements, clearly put growers at a significant disadvantage,” Mr Keogh said.

“The ACCC will shortly initiate­ investigations into potenti­al unfair contract terms.”