Export Prices and Contract Prices for Wine Growers

Senator Peter Whish-Wilson and Professor Kym Anderson AC explored the complexities of export and contract prices for wine growers. They discussed how factors like tariffs, exchange rates, and consumer sentiment impact the market, making it challenging to determine contract prices. The conversation highlighted the need for flexibility in contracts, allowing wine growers to make commercial decisions such as selling on the spot market. However, the existence of a spot market for wine was questioned, with Senator Whish-Wilson noting its absence in Tasmania. The discussion also delved into the specifics of the spot market for grapes, with Senator Whish-Wilson inquiring about its practicality. Professor Anderson acknowledged the difficulties, particularly for grape growers with limited time to sell their product. The issue of transparency in grape pricing was also raised, with Senator Whish-Wilson referencing a recommendation for wine grape buyers to provide price information to Wine Australia.