Wine grape growers have complained to the Australian Competition and Consumer Commission (ACCC), they are essentially powerless when selling their crops.
Much like dairy farmers, many vineyard owners across the state are at the mercy of the wineries they sell to, and aren’t able to negotiate price, volume and timely payment.
In some cases growers without a contract will have harvested their grapes and sent them on to a buyer long before they have any idea of what price they will get.
And, according to Brian Simpson of the Riverina Wine Grapes Marketing Board, it could be weeks or even months before they are paid.
“It’s disappointing not all wineries provide a valid indication of the price they will be paying to growers,” he said.
The Wine Grapes Marketing Board (WGMB) says it’s been a tough year for growers, with an increase in insect pests and diseases, because of warm weather and wet spring.
Farmers have had the added cost of controlling the pests this year, and without set prices from buyers, they can’t be sure of a decent return on crops. Mr Simpson says farmers shouldn’t have to foot the bills if they can’t rely on good market prices.
“For a functioning market, farmers are carrying too much of the risk,” he said.
And Mr Simpson said, all too often the prices farmers were eventually paid barely covered costs.
“Growers have been disappointed with grape prices for a number of years, in fact, they haven’t received a decent return since 2008,” he said.
“Anything below $300 per tonne isn’t viable for farmers because they aren’t able to put money aside to plant new vines or replace machinery.”
The WGMB says the ACCC is aware of the problems in the industry, with its newly appointed Agricultural Commissioner Mick Keogh already drawing parallels with the woes of dairy farmers.
In an article written last year for The Australian Farm Institute, Mr Keogh wrote,“it seems that the time is ripe to modernise marketing arrangements in these sectors which have so much potential, but which are held back by markets that are more suited to the 19th century than the 21st”.
With a sympathetic commissioner on the side of farmers, Brian Simpson believes it’s time for an industry overhaul.
“The business environment we are operating in needs a bit more legislation,” he said.
“Farmers need to know how much they will be paid for their crops, and when they will receive that money.”
