Government Support for Riverland Farmers and Grape Growers

Senator Barbara Pocock and Professor Kym Anderson AC discussed government support for Riverland farmers and grape growers. They explored the potential for a mandatory code and the impact of market concentration on the wine industry's fairness. The conversation highlighted the complexity of addressing the purchasing power imbalance and the potential consequences of a mandatory code on independent growers. Professor Anderson noted that the industry's structure, with many small producers facing large wineries, is unlikely to change. He suggested that while the current situation is challenging, existing support services are in place, and governments can provide additional support if needed. The discussion also touched on the lack of reliable data on wine growers' average income in the Riverland. Professor Anderson mentioned his independent review, which suggested considering unpopular measures during a crisis. The possibility of moving from a voluntary to a mandatory code was explored, with Professor Anderson stating that making the code mandatory could have unintended consequences, such as big wineries increasing their own grape production or purchasing grapes from other countries. The conversation delved into the issue of concentration in the wine sector, with Senator Pocock highlighting the potential unfairness of the market due to the high concentration of wine buyers. Professor Anderson acknowledged that the concentration of the wine industry can lead to an imbalance in purchasing power, affecting the market's fairness. He emphasized that addressing this imbalance is complex and that transparency and price information for grape suppliers are crucial.