SOUTH Australia will lead a wine sector working group with an aim to address the significant challenges facing winegrape growers, including those in the Riverland.
Growers have been receiving grape prices below the cost of production for an extended period due to a global red wine oversupply, with concerns the situation could spell disaster for the region's wine sector and wider communities.
More than 150 growers voiced their concerns at a crisis meeting at Barmera in February, with attendees resolving to call on state and federal governments for immediate financial support.
Earlier this month, agriculture ministers from across the country established a viticulture and wine sector working group made up of representatives from federal and state governments, Wine Australia, Australia Grape and Wine and other relevant groups.
The working group will visit the regions most impacted by oversupply, including the Riverland, over the coming month and report back to ag ministers by the end of April.
The dates of regional visits will be decided soon.
"The Australian Government recognises the inland regions are facing significant challenges following natural disasters, shifts in consumption, and the effective closure of the Chinese market," a federal government spokesperson said.
"The government remains committed to supporting our wine sector overcome these challenges and return to profitability."
The spokesperson said $3.3 million had been provided to AGW to help the industry develop long-term demand for Australian wine, and had a range of government programs that could be accessed by struggling growers including the Farm Household Allowance, concessional loans through the Regional Investment Corporation and free financial counselling through the Rural Financial Counselling Service.
"Introducing and establishing Australia's world-class wine into new markets will help address the imbalance between supply and demand over the long-term," the spokesperson said.
"We have engaged actively with China to resolve our WTO wine dispute and secured a review of duties on Australian bottled wine."
On a state level, wine will be at the top of the agenda during SA primary industries minister Clare Scriven's visit to China.
Ms Scriven was in China last week with PIRSA representatives, and a delegation of wine and agribusiness leaders.
Prior to the imposition of tariffs on Australian wine, China was SA's largest export market with a value of $946.5 million and a 47.2 per cent share of SA wine exports across the globe.
Discussions and promotions of SA wine were made at Taste of South Australia Showcase and Wine Masterclass in Guangzhou, and the China Food and Drinks hotel show in Chengdu last week.
"The wine industry worldwide is currently impacted by an oversupply of red wine grapes," Ms Scriven said.
"With cautious optimism that the tariffs on wine may be eased and the continued importance of China as an export market for South Australian wine and other agribusiness, it is critical we support the sector for a risk-managed reengagement with China."
