Additional comments from Australian Greens' Senators

1.1The Australian Greens thank all those who supplied evidence to this important inquiry through submissions or hearings.

1.2The Australian Greens support the establishment of a mandatory code of conduct enforced by the ACCC. We believe all stakeholders in this important issue, including growers, buyers, producers and government, hold responsibility in delivering a mandatory code that safeguards our wine industry now and into the future.

1.3While the development of a mandatory code is critical, this process will take time. Our winegrape growers are clearly struggling right now, and urgent actions must be taken to do more to help growers during this year’s harvest.

Issue 1: Mandatory code of conduct

1.4The wine industry is crucial to our economy, but growers are struggling. The committee received evidence that showed that 92 per cent of growers in warm climates, such as the Riverland in South Australia, are unprofitable.[1]

1.5It must be noted that the committee did not take evidence from regions other than the Riverland, Riverina and Murray Valley. Without taking evidence from growers and purchasers from other wine producing regions around Australia, the Australian Greens are cautious about recommendations to extend a mandatory code across the whole sector without potentially impacted parties being given the opportunity to engage in consultation, provide evidence and suggest solutions.

1.6There was however clear evidence, given evidence from impacted growers, the ACCC and others, that a mandatory code needs to be applied to warm inland regions as a matter of urgency.

1.7The committee also received evidence that growers were penalised in some instances based on fruit intake tonnages being delivered to producers and winemakers. For example, wineries would sometimes change intake tonnage amounts mid-season, creating additional uncertainty for growers.[2] The Australian Greens believe it is important that this issue is also resolved within the development of the mandatory code.

1.8The Australian Greens recommend that Recommendation 1 of the Senate Inquiry report into the Australian winegrape purchases code of conduct be amended by adding 30 September as the date by which indicative pricing is published, and adding a tonnage threshold to the application of the mandatory code, as follows:

The committee recommends that the Treasurer, in consultation with stakeholders and the Australian Competition and Consumer Commission (ACCC), determines the most appropriate model of a mandatory code of conduct for Australia winegrape purchases (code of conduct) across all of Australia’s winegrape growing regions with specific focus on the most impacted in the inland regions of the Riverland, Riverina, and Murray Valley (including Sunraysia) and for those purchasing large tonnages of grapes over a threshold that would need to be determined; to be implemented by the ACCC.

The code of conduct should establish fair and equitable terms addressing the following:

payment terms to be limited to within the financial year of delivery at the latest;

quality requirements including minimum standards, measurement methods, and what actions will be taken if the requirements are not met;

earlier indicative pricing by at least the 30th of September; and

binding dispute resolution.

Issue 2: Interim measures

1.9The Australian Greens recommend that the Government must take urgent action on indicative pricing and expert determination processes, prior to the mandatory code coming into effect.

1.10The committee received evidence that the disclosure of indicative prices as late as mid-December created an untenable situation for growers and has a significantly detrimental effect on the viability of grower businesses.

1.11Growers provided evidence to the inquiry in support of early indicative pricing, for example at the hearing in Renmark, Mr Jason Perrin asserted that:

Indicative prices must be issued by the end of September each year, not this business of the second Wednesday or 15 December. Even the ACCC, in their 2021 report—and I've got that here in case I needed proof—have said it just doesn't work. Growers are entitled to have a much better indication of prices for their business.[3]

1.12Additionally, Ms Simi Gill said that in her experience:

…the lack of price transparency has been a major issue with the winery. We don’t know anything about the prices until harvest time, but the winery does know this.[4]

1.13When asked whether they supported price signals reporting at the end of September so growers can make decisions about resource allocations, Mr Jeremy Cass of Riverina Winegrape Growers said they ‘support all of that’.[5]

1.14The Australian Greens recommend that the following interim measures be implemented this year as a matter of urgency prior to the mandatory code coming into effect:

indicative prices for all winegrapes should be compulsorily notified by all winegrape purchasers by the 30th of September 2025; and that the announcement of indicative prices be included in the mandatory code to be required by the 30th of September each year.

the decisions of any expert determination processes are to be legally binding and enforceable with appropriate penalties.

Issue 3: Equal representation for winegrowers and winemakers

1.15Chapter 3 of the Chair’s report correctly identified that there are issues with industry representation. However, the report did not make a recommendation to address this problem. Winegrape growers provided evidence to the committee that they have insufficient representation in the industry’s peak body Australian Grape and Wine Inc., as well as other representative bodies.[6]

1.16There was clear evidence from growers in favour of fifty-fifty winemaker-grower representation on any joint representative body and that without proper representation, growers feel unheard, and any power imbalances are exacerbated further.[7]

1.17The Australian Greens recommend that, through the implementation of the mandatory code of conduct, the Australian Government mandate fifty-fifty winemaker-grower representation in the industry’s peak body and any other bodies where both winemakers and winegrape growers are currently represented.

Footnotes

[1]ACCC, Submission 7, p. 4.

[2]Mr Jason Perrin, Committee Hansard, 12 December 2024, p. 9-10.

[3]Mr Jason Perrin, Committee Hansard, 12 December 2024, p. 11.

[4]Ms Simi Gill, Committee Hansard, 12 December 2025, p. 12.

[5]Mr Jeremy Cass, Committee Hansard, 12 February 2025, p. 2.

[6]Mr Jason Perrin, Committee Hansard, 12 December 2024, p. 10.

[7]Mr Jason Perrin, Committee Hansard, 12 December 2024, p. 10.