Govt stumps up millions to help pull out SA vines
The state government has announced funding support for the struggling wine sector in tearing up SA vineyards and shifting surplus wine in a suite of targeted help.
Premier Peter Malinauskas has today unveiled a $109 million wine industry support package designed to support the $2.4 billion sector that is struggling with a wine glut and a shift from red wine demand.
And a new Wine Industry Coordinator – yet to be named – will be appointed, the Premier said, to strengthen engagement between the sector and government.
A $100 million loan scheme is the main component of the funding, which will give businesses money to tear up vines and transition land to new uses.
Wine Australia data from July found there were 1440 hectares of vines less than the same time last year in South Australia, as growers rip up plantings as they try to save their industry by correcting an oversupply of grapes in the market that’s depressing prices across the board, particularly for red varietals.
SA wine mogul Warren Randall told InDaily earlier this year that Australia needed to pull out a third of its vines to re-correct and “get back into balance”.
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The announcement follows dire new data about the latest SA wine grape harvest which, in 2026, was the smallest reported crush since 2000.
The 2026 vintage was 17 per cent below last year’s total tonnes crushed, down more than 100,000 tonnes to 573,252 tonnes.
Export and market growth is another feature of the package, with $5 million to expand the Global Wine Growth Program for another two years to drive international interest in South Australian wine.
The Premier said the industry was facing significant challenges like a global glut of grapes, declining grape prices, shifting consumer demands and other market pressures.
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“The industry is facing significant challenges and we are acting to safeguard its future and support wine grape growers and producers,” Malinauskas said.
“This comprehensive support package, developed with industry, will help position our wine sector for long-term competitiveness.”
The package was welcomed by SA Wine Industry Association President Kirsty Balnaves, who said the state’s winemakers and growers were “navigating a challenging period of structural adjustment and changing market conditions”.
“This package recognises those challenges while investing in the industry’s long-term future,” she said.
Other features of the $109 million package include $2 million for waste and inventory support management, coordinated by government, council and industry.
Surplus wine inventories were also targeted by the plan, with $500,000 committed over two years for the development of industry-led solutions to the problem.
The package was developed after the government consulted with key wine industry stakeholders at a sector forum last month.
Primary Industries and Regional Development Minister Clare Scriven said the package was a “balanced and targeted response that supports business transition, expands market opportunities and helps build long-term economic resilience”.
“This investment will help drive demand for South Australian wine at home and overseas, while supporting innovation, diversification, market growth and regional development,” Scriven said.
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