The Coalition Government has popped the cork on a $50 million, three-year plan to fuel the Australian wine industry. The funding aims to increase the value of wine exports up to a record $3.5 billion and promote wine tourism in regional communities.
The official launch of the $50 mililon package, known as the Export and Regional Wine Support Package (The package) has been highly anticipated by the wine industry since its proposal in 2016 as a supplement to the Wine Equalisation Tax reforms.
Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, and Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, today in Adelaide launched the Export and Regional Wine Support Package, designed to deliver the largest and most sustainable export growth and strongest support for increased international wine tourism.
“Australia’s wine industry has enjoyed significant growth in recent years on the back of the Coalition’s market access gains”
“Australia’s wine industry has enjoyed significant growth in recent years on the back of the Coalition’s market access gains, with our wine exports forecast to exceed 800 million litres and $2.5 billion in 2017–18,” said Joyce.
“This package aims to build on this, delivering up to 8 per cent per annum value growth across all export markets to 2021–22, including 15 to 17 per cent in China and 6 per cent in the US.
“At home the package will help to attract up to 40,000 more international tourists to visit our world-renowned wine regions, and take the great Australian wine tour, by 2019–20, delivering an estimated $170 million to the economy.”
Anne Ruston and Barnaby Joyce after the announcement. Photo: Camellia Aebischer.
The package includes four distinct programs, including:
- a more than eight-fold increase in investment for marketing campaigns in the US and China,
- building the capability and capacity of grape and wine businesses to capture export and tourism opportunities, including a wine exports grants scheme for current and new exporters to China and the US,
- state-based and competitive grants to develop exciting wine tourism experiences and attract international tourists, and
- transforming cider businesses by building knowledge of potential export markets and developing improved understanding for accessing these markets.
“[It’s] part of a suite of measures to reform the Wine Equalisation Tax rebate scheme, following extensive consultation with the wine industry,” said Ruston.
“Our wine industry was already in a strong position, with tariff reductions from the China Australia Free Trade Agreement leading to China overtaking the US as the most valuable destination for Australian wine.
“This investment is ensuring we will capitalise on this and drive further growth.”
“This investment is ensuring we will capitalise on this and drive further growth.
“I’m looking forward to the industry taking ownership of it and making it work not only for their benefit and our economy, but also for the regional communities in which many of them operate.”
The package will be managed by Wine Australia, working closely with industry.
Wine Australia CEO Andreas Clark said that he’s excited about the amount of opportunity to come. “It’s really quite transformational in terms of what we can do with this from an export marketing perspective.”
“We’ll focus in the US and China, but all markets are important so we have to keep up the UK and Canada, but we’re trying to drive the growth opportunity we can see in the US and China. It’s really exciting.”
For more information visit https://www.wineaustralia.com/whats-happening/export-and-regional-wine-support-package