2025-02-07
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The Senate Rural and Regional Affairs Committee will hear evidence today from the ACCC and Department of Agriculture in the second hearing of its inquiry into the Australian wine grape purchases code of conduct. At a previous hearing in the South Australian Riverland, the committee heard from grape growers about hardships in their industry caused by anti-competitive behaviour by big wine producers. Lines attributable to Senator Barbara Pocock: “Riverland grape growers are doing it tough. When the supply of wine grapes exceeds demand you don’t need to be an economist to understand these growers are at the mercy of the big winemakers. “The aggregation of wine producers in Australia has created an uneven playing field for wine grape growers who are often forced to sell their crops for less than what it costs to grow them. “An oversupply of wine grapes has left many growers at the mercy of the big wine producers like Accolade and Treasury. We’ve heard stories of farmers who have dedicated their lives to the production of wine grapes who are too afraid to tell their stories because they fear retaliation from wineries. “The current code of conduct for wine buyers is voluntary and penalties for non-compliance don’t exist. Independent grape growers are asking for a mandatory code of conduct that is enforceable to ensure they have a livelihood for their families. When this committee took evidence in Renmark in December, we heard from a young Riverland grape grower who spoke of losing farmers to suicide, depression and bankruptcy. “A spokesperson for independent growers, Jason Perrin, told our inquiry that the big companies have walked away from the agreed pricing process when it doesn’t suit them, basically destroying the credibility of the voluntary code. He says the industry needs a mandatory code that is legally binding and enforced by the ACCC.” Hearing Program: 10:00 am – Professor Kym Anderson, Executive Director, Wine Economics Research Centre, University of Adelaide 10:30 am – Australian Competition and Consumer Commission and Department of Agriculture, Fisheries and Forestry Hearing will be livestreamed here Transcripts and Inquiry Submissions available here |