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Wine Industry Considers Profitable Future

Written by  Wine Victoria Thursday, 03 October 2013

Wine Victoria (WV) today met with Winemakers' Federation of Australia (WFA) and industry leaders in Melbourne to consider the future of Victoria's wine industry.

According to a report recently released by the WFA, this iconic regional industry is being battered by the perfect storm of a high Australian dollar, falling export demand, oversupply of product and growing retailer power.

WV Chair, Stephen Strachan said that these issues were real and hitting the Victorian wine industry hard. In a recent WV survey almost 45 per cent of respondents indicated that they did not make a profit in the 2011-12 financial year.

"Our survey results were startling and what most people don't realise is that when in comes to Victorian wineries: more than 90 per cent are small businesses, they are regional employers and they are one of the last regionally-based manufacturing industries that value-adds" he said.

At the meeting WV welcomed the recommendations the WFA made in relation to;

  • Addressing retailer power particularly in relation to an industry code of conduct
  • The opportunities for industry to work with governments at all levels on increasing export opportunities for Victorian wine in growing international markets
  • Reforming the Wine Equalisaton Tax Rebate to prevent instances of abuse and rorting.

WV stressed the importance of retaining the WET Rebate for those regional wineries that were the initial intended recipients.

WV remains in strong opposition to any processes of review that does not first seek to fully understand the impact of the WET Rebate on the profitability of the Victorian Wine Industry.

The inaugural 2013 Wine Victoria Industry survey identified that more than two thirds of wineries that are currently making a profit would close their doors if the WET Rebate was removed.

More information on the industry expert review can be found herehere.

For a PDF version of this media release please click here.

Interview opportunities:
Wine Victoria Chair, Mr Stephen Strachan

Contact details for more information or to obtain a high res version of the photos below:
Rachael Sweeney
Executive Officer, Wine Victoria
Mob: 0422 067858
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

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