‘In grip of social and economic emergency’: Riverland wine grape growers plea to Premier
Riverland wine grape growers have sent an “urgent” letter to Premier Peter Malinauskas calling for immediate action as their industry struggles to survive wine grape prices hitting historic lows.
The Riverland’s peak body says its more than 900 South Australian Riverland wine grape growers and 25 wineries are in the “grip of a social and economic emergency” as plunging grape prices fail to come close to covering production costs.
Riverland Wine has directly called on Premier Peter Malinauskas for help in a strongly worded letter telling him the region needs an immediate government-led crisis meeting and a structured support package for farmers in the state’s largest grape growing region.
The group, along with local Liberal MP Tim Whetstone, are calling on Malinauskas to meet with growers in the Riverland, the engine room for the state’s wine industry, and see their plight firsthand. A spokesman for the Premier said the letter’s contents were currently being assessed.
“When farmers stop believing they have a future, whole towns suffer. Schools, local businesses, sporting clubs, and service organisations all feel the shockwaves,” the letter signed by Riverland Winegrape Growers Association chair Amanda Dimas and Riverland Wine Industry Development Council chair Jim Markeas said.
Opposition Trade Minister and former Riverland wine grape grower Tim Whetstone told InDaily the state’s “multibillion-dollar industry” is “on its knees”.
“History would show (Malinauskas) that if he lets this industry crash and burn, we will see a massive economic failure, particularly here in South Australia.”
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Riverland grape growers have faced a series of tough years after dealing with punishing Chinese wine tariffs, a red wine glut, River Murray flooding, drought and now a global downturn of about seven per cent in demand for red wine varieties that has led to a global oversupply of wine and plunging prices.
Early price indicators suggested the 2026 vintage of shiraz grape price offers could be as low as $80 to $120 per tonne, far below the cost of production which exceeds $350 per tonne.
Prior to industry smashing Chinese tariffs in 2020, shiraz grape could command around $700 per tonne.
“Wineries are looking for cash flow, so they’re putting product into the market at well below the cost of production just to pay the bills and wages,” Whetstone said.
“And what we’re seeing now is that it’s impacting the growers.”
Whetstone said the number of people in the Riverland receiving the Farm Household Allowance (FHA) was “frightening”.
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The FHA is a federal government assistance package for commercial-scale farmers facing financial hardship, with a Rural Business Support report estimating more than 50 per cent of Riverland growers were already receiving the financial support.
Riverland Wine’s letter called for government support for farmers looking to exit the industry amid growing financial concerns.
It also outlined that there had been a 50 per cent increase in temporary water prices from last season due to the ongoing drought conditions, with prices around $300 per megalitre.
Whetstone said grape growers have sold water entitlements and equipment “to pay the bills and put food on the table” and now, most wine grape growers in the Riverland were forced to lease water entitlements.
However, Whetstone did not believe there needed to be a “bailout” for wine grape growers.
“I don’t think we need to have taxpayers’ money used to prop up the industry grape growers, but they do need triggers that will help them make decisions.”
Whetsone said a “structural adjustment” to implement education programs that assist growers with alternative growing options and “no to low interest loans” that are of “no cost to the taxpayer” would be key to addressing wine industry concerns.
“The industry needs some level of guidance, and we’re not getting it. It’s about giving people better information, better data, so that they know what stocks are around.”
In response to questions to Premier Malinauskas, a state government spokesperson for Primary Industries and Regional Development Minister Clare Scriven responded, saying the “oversupply of winegrapes and large bulk wine inventories” was driving the issues facing the Riverland region.
“The Riverland Wine Industry’s request has been received and is under active consideration,” the spokesperson said.
The spokesperson said the state and federal government had established $15 million in programs to address issues including a “$1.85 million South Australian China Re-Engagement Support Package” and a “$2.5 million South Australian Wine Recovery Program to support vineyard waste management of abandoned or removed vineyards”.
