The South Australian Government has announced a $109 million Wine Industry Transition and Growth Package to support the state’s wine sector through global oversupply, declining grape prices, changing consumer preferences and continuing market pressures.
The package, announced by the Malinauskas Government, aims to support industry transition, expand market demand, encourage regional investment and strengthen the long-term sustainability of South Australia’s wine industry.
The state’s wine industry is valued at approximately $2.4 billion, produces around 80 per cent of Australia’s premium wine and supports more than 90,000 jobs.
A key component of the package is a $100 million government-backed loan scheme for growers seeking to transition unviable vineyards towards more sustainable and higher-value land uses. Eligible growers will be able to access loans of up to $500,000, with no principal or interest repayments required during the first two years.
The government will also allocate $5 million to extend and expand the Global Wine Growth Program for a further two years, with the aim of increasing international demand for South Australian wine. A separate $675,000 targeted advertising campaign will promote the state’s premium food and wine offering and support tourism opportunities.
The package includes $2 million for government, council and industry collaboration on solutions for waste associated with copper chrome arsenate (CCA)-treated timber posts, including the potential establishment of regional aggregation and storage sites.
A further $1 million over two years will provide growers with independent diversification planning advice to support sustainable vineyard transitions. The government will also provide $500,000 over two years to assess and develop industry-led solutions for surplus wine inventories.
To improve coordination across the sector, a new Wine Industry Coordinator will be appointed to identify barriers to an orderly industry transition and strengthen engagement between industry, government and regional stakeholders.
Planning changes under the Riverland Economic Recovery Joint Amendment will also support winegrowers in the Riverland by facilitating housing and employment land and creating additional land-use opportunities.
The Wine Industry Transition and Growth Package follows consultation with key wine industry stakeholders after a wine industry forum convened by the Premier last month. The measures are intended to complement existing support from the South Australian and Commonwealth governments while helping the state’s wine sector adapt to changing global and domestic market conditions.
