The Albanese Labor Government has announced a new mandatory code of conduct aimed at improving trading conditions for Australia’s wine and grape sector. This initiative responds to the findings of a comprehensive review conducted by Dr. Craig Emerson, which highlighted the need for fairer practices in an industry facing challenges such as global oversupply and declining consumption rates.
The introduction of this code will ensure that transactions between wine grape growers and winemakers are conducted in good faith, promoting fairness throughout the supply chain. It specifically targets large winemakers, mandating that they adhere to equitable practices in their dealings with grape suppliers.
Under the new regulations, which will take effect on January 1, 2027, key issues such as price deductions and dispute resolution will be clearly defined. This clarity is expected to provide growers with essential financial information that will aid in their business operations. The code aims to enhance the long-term sustainability of the industry while ensuring the viability of growers.
The Australian Competition and Consumer Commission will oversee the enforcement of the code, which is being developed with input from both wine grape growers and winemakers. This collaborative approach aims to foster a balanced environment that supports all stakeholders.
Since taking office, the Albanese Labor Government has committed over $80 million to bolster the grape and wine sector, recognizing its significant contribution to the Australian economy.
Minister for Agriculture, Fisheries and Forestry, Julie Collins MP, emphasized the importance of this initiative, stating, “Strengthening trading practices from vines to vats is critical to the industry’s growth and success, and will ensure people at home and abroad can continue to enjoy Australia’s world-class wine.” She added that the code will create a fairer working environment for grape growers.
Assistant Minister for Productivity, Competition, Charities, and Treasury, Andrew Leigh, also reinforced the government’s commitment to improving industry standards, noting, “For the many winemakers who already act in good faith, the code won’t feel new – it will simply recognise the way responsible operators already do business.”
This new mandatory code represents a proactive step towards addressing the concerns raised by growers and ensuring that the Australian wine and grape sector can thrive in a competitive global market. The government’s focus on establishing fair trading practices is set to create a more equitable framework for all involved, ultimately benefiting consumers and producers alike.
