Structuring a Mandatory Code

Senator Richard Colbeck asked about the benefits of a mandatory code for winegrape growers and wineries. Jeremy Cass, CEO of Riverina Winegrape Growers, suggested a properly structured code could allow anonymous complaints to be investigated by the ACCC, giving growers more confidence to speak up. Bruno Brombal, Chairman of Riverina Winegrape Growers, highlighted the risks growers face when complaining to wineries, including being blacklisted. He shared an example of a winery changing the price of Shiraz from $300 to a lower price, negatively impacting growers who had already made financial commitments. Growers also face difficulties in spending money on chemicals and fertiliser without knowing the final price of their grapes, and need a code that provides price certainty early in the season. Jeremy Cass shared another example where a winery suggested a price range, but initially indicated a higher price, causing a grower to spend money based on that price, only to be negatively impacted when the price was lowered. Cass also discussed issues with quality assessments, which can be used to downgrade or vary the pricing on grapes. Robert Bellato, Deputy Chair of Riverina Winegrape Growers, echoed Brombal's concerns, emphasising the need for a code that wineries cannot contract out of, to ensure growers have a secure and stable future.