Australian winegrape purchases code of conduct

The inquiry into the Australian wine grape purchases code of conduct aims to address concerns within the winegrape industry, particularly in relation to the need for a mandatory code of conduct to protect winegrape growers. The main purpose of the hearing was to examine the potential benefits and challenges of implementing such a code, with a focus on promoting fairness and transparency in the industry. The inquiry was set against the backdrop of industry concerns, including oversupply and cost recovery issues. The discussion highlighted the importance of a robust framework to support winegrape growers and ensure a healthy winery-grower relationship. The inquiry heard testimonies from Riverina Winegrape Growers, who emphasised the need for a mandatory code to address issues such as payment terms, price certainty, and quality assessments. The discussion briefly covered cost recovery and fair treatment for growers. The proposed code aims to provide a mechanism for anonymous complaints and alleviate fears of taking action against wineries, while also addressing issues surrounding price releases and the limitations of the current voluntary code. The key findings of the inquiry highlighted the need for a mandatory code of conduct to protect winegrape growers and promote fair business practices in the industry. The proposed code would include provisions for negotiations, arbitration, and oversight by the Australian Competition and Consumer Commission (ACCC). The inquiry's conclusions emphasized the importance of government support to help the industry consolidate and address issues such as oversupply, with initiatives such as removing old wine from the market and converting it into ethanol proposed as potential solutions. The inquiry's recommendations aimed to prevent growers from having to sell assets to stay afloat and to prevent wineries from pressuring growers into unfavorable payment terms.