SA wine industry hit hard by tariffs closing off Chinese market

A group representing 1000 wine growers across South Australia is asking the next state government to commit to a better package of support for the industry.

South Australian winemakers are thrilled with the quality of grapes coming off the vines this season, but Chinese tariffs are casting a shadow over large parts of the industry that are crying out for more state government support.

The Riverland has been hit hard by the effective closure of access to the Chinese market, which used to take most of the region’s red wine.

Global shipping and supply chain challenges, plus the decimation of international bulk wine prices, have combined to push growers and vineyards closer to the edge.

Richard Wellsmore, Kate Petering and Mark Maxwell at Maxwell Wines in McLaren Vale. Picture: Michael Marschall

Riverland Wine, which represents about 1000 grapegrowers producing almost a third of Australia’s wine grapes, wants the state government and opposition to commit to new initiatives on top of the existing export expansion programs.

They are seeking $2m for wine export programs and adaptation of grape and wine production.

Among the projects are:

$500,000 THIS year for exporters to invest in new marketing and distribution channels.

$350,000 TO incentivise Riverland growers to invest in new varieties;

$200,000 SUPPORT for growers moving towards organic production certification.

$150,000 FOR a water-security study for all SA regions dependent on the Murray-Darling Basin.

A shot from the process of making Vintage 2022. Picture: Barossa Australia.

The organisation also wants money to help with marketing,

“These are some of the toughest times in decades for wine growers and producers,” executive officer Lyndall Rowe said.

“Given the significance of the wine sector to SA, we would like to see government do more to assist this sector.”

But Primary Industries Minister David Basham was not moved to expand the offering and simply encouraged Riverland Wine to tap into an existing $5.4m wine export recovery and expansion program, or other grant schemes.

“There are multiple grants programs available to wine businesses impacted by market disruptions and we have opened up new trade offices to help grow exports,” he said.

Opposition regional development spokeswoman Clare Scriven pointed to Labor’s $20m pledge to boost marketing through the SA Tourism Commission to focus on the state as a destination.

Primary Industries Minister David Basham MP has thus far turned down the industry’s requests for extra funding. Picture: Emma Brasier

“We acknowledge the key role the wine industry plays in the SA economy and we will be working with the industry as it rebuilds from its export market challenges,” she said.

It’s a much happier story at Maxwell Wines, in McLaren Vale.

“The wines we have made so far are excellent, the reds have amazing colour – wouldn’t look good on a white shirt,” owner Mark Maxwell said.

“We will be picking well into April, mostly by machine, and the cold nights help to slow the ripening, allowing more ‘vine time’ to develop flavour.”

Originally published as SA wine industry hit hard by tariffs closing off Chinese market