The Malinauskas Government has announced a $109 million support package to position the SA wine sector for sustainable long-term growth.
The state’s wine industry is currently worth $2.4 billion, produces 80 per cent of Australia’s premium wine and provides more than 90,000 jobs. This funding boost comes as the sector grapples with global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures.
Built upon existing State and Commonwealth Government support, the $109 million Wine Industry Transition and Growth Package will generally boost vineyard transition, expand market demand and promote new regional investment through a suite of measures, including:
- A $100 million loan scheme to back growers’ transition of unviable vineyards to more sustainable, higher-value land uses.
- $5 million to extend the Global Wine Growth Program for two more years to drive international demand for SA wine, accompanied by a $675,000 advertising campaign.
- $2 million in disposal solutions for CCA-treated timber posts, including establishing regional aggregation and storage sites.
- $1 million to give growers advice in independent diversification planning to achieve sustainable transition outcomes.
- $500,000 to develop industry-led solutions for surplus wine inventories.
- Additional land use opportunities for winegrowers in the Riverland.
In addition, the state government will appoint a new Wine Industry Coordinator to oversee and implement these measures, address barriers to transition and strengthen engagement between industry, government and regional stakeholders.
Australian Grape & Wine CEO Lee McLean congratulated Premier Peter Malinauskas on his willingness to respond promptly to the pressures weighing on the industry with practical support.
“These are practical measures that respond directly to challenges Australian Grape & Wine has been raising with governments, including through our Federal Pre-Budget Submission,” said McLean.
“South Australia produces around half of Australia’s wine grapes and half of our bottled wine, so this investment will make a real difference.”
Meanwhile, the broader Australian wine sector is also seeking further government support as it faces similar market challenges.
“We are calling on the Australian Government to work with their state government counterparts to match South Australia’s commitment and ensure equivalent support is available to grape growers and winemakers across the country.”
