Winegrape Growers' Contract Terms and Mandatory Code

Senator Barbara Pocock and Jeremy Cass, CEO of Riverina Winegrape Growers discuss a mandatory code to protect winegrape growers from unfair practices. The proposed code would include transparent contracts, dispute resolutions, and penalties. Cass highlighted the need for timely price signals, suggesting September as a more suitable time for growers to receive price information, rather than the current October schedule. The industry is struggling due to low prices, with some varieties selling for as low as $150 per ton, which barely covers production costs. The Chinese tariffs had a devastating impact, resulting in a massive oversupply and a decline in the number of growers. If the situation doesn't improve, the region may need to reduce sales by 25%, further exacerbating the struggles of winegrape growers. Senator Pocock discussed the possibility of implementing a mandatory code bounded regionally, considering the different needs of warm and premium regions. Cass agreed that limiting the code to warm irrigated areas, which produce 70% of the country's winegrapes, would be satisfactory for their region. He also emphasized the need for a code of conduct that extends to the retail level, to prevent large retailers from exploiting wineries and winegrape growers. Cass noted that the financial struggles of winegrape growers have a ripple effect on workers across the supply chain, leading to poorer employment conditions and insecurity of income. A mandatory code could help protect workers by ensuring fair prices and stable income for growers.