Consolidation in the Winegrape Industry and Government Support

Senator Matthew Canavan discussed the winegrape industry's need for consolidation with Jeremy Cass, CEO of Riverina Winegrape Growers. The industry is struggling due to an oversupply of grapes, partly caused by China's tariffs on Australian wine exports. Cass agreed that consolidation is necessary and suggested government support would help some growers exit the industry, bringing supply and demand back into balance. Government support, such as the $30 million allocated in the previous budget, could aid growers in transitioning to other industries. The discussion also explored initiatives like those in Spain and France, where old wine is converted into ethanol, as a potential solution. Senator Canavan thanked Cass for his input and invited further information to inform the committee's report. The key takeaways included the need for industry consolidation, government support, and innovative solutions to address the oversupply of grapes. The testimony highlighted the significant impact of external factors on the industry and the need for adaptive measures to ensure its sustainability.