Australian Grape & Wine (AGW) has welcomed Dr Craig Emerson’s report on the wine and grape sector, which has outlined recommendations to address market imbalances and commercial practices across the sector.
The report makes 14 recommendations including the introduction of a mandatory Code of Conduct for winegrape purchases as well as reforms to help improve transparency and payment terms.
AGW’s Chief Executive Lee McLean, said the organisation would now take the time to work through the recommendations in detail, in consultation with members and stakeholders across the sector.
“This is a substantial report tackling complex issues, and we acknowledge the significant work undertaken by Dr Emerson and his team,” McLean said.
“We recognise the need for change and reform in some areas of our sector and will work constructively with the Australian Government as it considers its response. It is essential that industry has a strong voice in the next phase to ensure any measures brought forward are fit for purpose, deliver real benefits for both grape growers and winemakers, and avoid any unintended consequences.”
McLean also welcomed the wide variety of views brought into the report through the review process.
“Striking the right balance will be critical. What works in one region or business model may not be appropriate in another, and Dr Emerson has clearly acknowledged that in the consultation process,” he said.
AGW said it supports the recommendation to establish a working group to guide the design and implementation of reforms that may be adopted by the government, but added that industry needs a seat at the table in this process.
“This is an opportunity to create a more transparent, fair and resilient sector. With meaningful industry involvement, we can get the settings right for long-term success,” McLean said.
In a statement about the report, Endeavour Group welcomed its release and said it is looking forward to working with the Government as it considers the report’s recommendations.
The statement added: “As the report outlines, Endeavour Group has already agreed to collaborate on a range of initiatives put forward by Dr Emerson, including in relation to labelling and the provision of industry insights.
“Endeavour Group is deeply committed to the Australian wine industry, and supports the Government’s efforts to strengthen relationships and ways of working across the value chain.”