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WGCSA Update

ACCC starts the conversation we have to have if we're going to improve our industry

A presentation from ACCC Deputy Chairman Mick Keogh at the 2019 Australian Wine Industry Technical Conference started so many conversations around me that it's obvious that the topic of contract terms is a hot issue at the moment. 

During his presentation, Mick Keough took aim at contract terms. Darren Gray reports in the Sydney Morning Herald, 'Mr Keogh urged those in the audience who thought extended payment terms were justified, to consider the somewhat radical "proposal" he outlined.

"As a wine consumer, I think I should be able to select a bottle of wine off the shelf, and decide what it’s worth. I pay one-third of that when I leave the store.

"I'll pay a second one-third payment in six months, and I'll pay the balance when I get around to drinking it, which could be years in the future," he said.

"If you think this is a ridiculous proposal, then perhaps you need to reflect that this is essentially how the current contract and payment terms operate for wine grape growers," Mr Keogh told the crowd at the Australian Wine Industry Technical Conference in Adelaide.

Our National body, Australian Grape & Wine (AGW), has written a submission to the ACCC's interim report which you can read here. We welcome AGW's proactive approach to the report and their detailed submission which will be taken into account for the final report from the ACCC.

So what’s the Wine Grape Council of SA's role in wine grape contracts? As contracts are a commercial agreement, we cannot provide advice or advocate on growers' behalf. However, our website has a wealth of information, including a great guide on how to sell grapes written by Viticulturist Dr Mary Retallack, to assist growers with selling their grapes.

The biggest thing that hit me during Mick Keogh's presentation was the need for transparency and this is something that Australian Grape and Wine has also echoed.

As always, we would love to hear your thoughts. Send an email to admin@wgcsa.com.au if you have something, you'd like to share about payment terms for wine grapes.

Lots of interesting information in this month’s newsletter.  In particular, the article on our Barossa WGCSA representative Adrian Hoffmann is fantastic.  After a cold day in the vineyard pruning, I encourage you to grab a beverage of choice and have a read!

Lisa Bennier
Business Manager 
In this issue

2019 Vintage above the early predictions

Photo credit: Barossa Grower Anthony Scholz

The total crush from Vintage 2019 is in and it is above early predictions.

In South Australia, Barossa, Adelaide Hills and Clare Valley were the worst affected in tonnage terms but yields were generally not as low as originally feared.

The Limestone Coast regions (Coonawarra, Padthaway and Wrattonbully) produced much larger crops than their low-yielding 2018 vintage, while the Riverland had a very similar crop to last year.

The Australian winegrape crush for 2019 is estimated to be 1.73 million tonnes, just one per cent below the 10-year average.

This figure is well above early predictions that the harvest would be 10–20 per cent down on the 2018 vintage.

Winegrape value grows strongly

The lower yields were balanced by higher grape prices with the average value of winegrapes reaching $664 per tonne, up by more than $50 per tonne (9 per cent) on the 2018 average value of $611 per tonne. This figure is the highest since 2008, making 2019 the fifth consecutive vintage where the average purchase price for winegrapes has increased.

The total farmgate value of Australian winegrapes is estimated to be $1.17 billion in 2019, a 6 per cent increase despite the reduction in tonnage.

Mr Clark said the strong correlation between winegrape prices and average export value over the past 20 years continued in 2019. Average export value increased by 9 per cent in the year ended March 2019 to its highest level since 2009.

‘Growth in export value underpins the continuing success of the Australian wine sector, with exports accounting for 63 per cent of wine production’, Mr Clark said.

‘It is pleasing to see the value growth in Australian wine in export markets translating to increased premiums paid for Australian winegrapes.’

Read More

Australian wine exports continue to grow in value

The value of Australian wine exports has continued to grow in the 12 months to June 2019, increasing by 4 per cent in value to $2.86 billion. China continued to drive growth and the United States of America (USA) also made a welcome return to growth.

Export volumes decreased by 6 per cent to 801 million litres (89 million 9 litre case equivalents); this volume decline was driven by a decrease of 7 per cent in shipments of wine below an average value of $2.50 per litre free on board (*FOB). This resulted in a 10 per cent increase in the overall average value of exported wine to $3.58 per litre, the highest level since 2009.

Wine Australia Chief Executive Officer Andreas Clark said the growth in value and the declines in volume at that lower end of the price spectrum would be welcome news to the sector that has been focusing strongly on growing value rather than volume.

Read More

Barossa Councillor Adrian Hoffman profiled for People in Wine

Photo: Milton Wordley Photographer
Our very own Barossa representative for the Wine Grape Council of SA was profiled for the People of Wine blog written by photographer Milton Wordley.

A self-described Professional Grape Grower, Adrian is a sixth-generation Barossa boy and proudly runs the Hoffmann Property’ which was established in 1857.

Click the button below to read his interview. 
Read More

Sign up for Australian Grape & Wine newsletters

Don't forget! Your contributions to WGCSA entitle you to all the benefits of membership of Australian Grape & Wine. To sign up to receive the monthly newsletter direct and to vote at general meetings please email Laura to register your details by clicking here.

Do you employ people in your vineyard? Check out our updated employment FAQs

Do you employ people in your vineyard? Got an employment question you'd like answered?

We have just updated the Employment FAQ section on our website with the latest information about employees, wages, superannuation and more!

We also have the pay rates under the Wine Industry Award for the new financial year. 

And don't forget, as a member of WGCSA you have access to – at no additional cost – an advisory service on any issue relating to the employment and safety of workers with the South Australian Wine Industry Association (SAWIA).

Contact SAWIA by phone 8222 9277 or email admin@winesa.asn.au

Read More

Agrochemical Update - New Insecticide Registered

The Australian Pesticides and Veterinary Medicines Authority (APVMA) has recently approved a new insecticide active constituent combination for use in grape production. The ‘Dog book’ resources available online including the pdf and search facility have been updated to reflect this addition. The app will be updated on 8 July.

ACETAMIPRID AND PYRIPROXYFEN

APVMA 80807

‘Trivor’ is an Adama Australia Pty Ltd product.

‘Trivor’ is registered for control of grapevine scale, light brown apple moth and long tailed mealybug in grapevines. It is an activity group 4A + 7C insecticide.

Read More

SAWIA presents employee relations conference for the wine industry. 

Leading-edge subjects presented by key officials, leaders in employment relations, human resources, discrimination and related fields tailored to the wine industry. 

Proudly presented by the South Australian Wine Industry Association (SAWIA), this full-day conference will cover the latest developments of interest for all human resource managers/professionals and managers/leaders of people within the wine industry.
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2019 Spirit of Excellence in Agriculture Awards

The Agricultural Bureau of South Australia has opened its 2019 Spirit of Excellence in Agriculture Awards, which offer young farmers and rural youth the opportunity to pursue personal and professional development to ultimately benefit their local communities.

Application forms can be downloaded from the Agricultural Bureau of SA website at www.agbureau.com.au/awards. Entries close 5pm Monday, 16 September 2019.

Read More

Applications open for Australian Rural Leadership Program

Are you committed to rural regional and remote Australia? Do you want to see your region, community and industry thrive? Looking to develop your capability to influence and lead those around you?

The Australian Rural Leadership Program (ARLP) is the most in-depth experiential leadership development program in the country - spanning over 15 months and five sessions across Australia and overseas.

Read More
Copyright © 2019 Wine Grape Council South Australia, All rights reserved.


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