The authorities in South Australia have put together a “suite of measures”, expected to cost AUD109m (US$77.6m), to support the region’s wine industry amid oversupply conditions and “changing demand”.
The ‘South Australia Wine Industry Transition & Growth Package’ has been developed with “key wine industry stakeholders”, according to a Government of South Australia statement on Friday (18 September). It said the state’s wine industry, which produces 80% of the country’s “premium wine” and is worth AUD2.4bn, is grappling with “global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures”.
Of the total, only AUD5m has been earmarked to “drive international demand”, alongside an AUD675,000 advertising budget. The vast majority of the funding has been allocated to helping growers move away from “unviable vineyards”.
Measures include:
- An AUD100m loan scheme to help growers “transition” vineyards to “more sustainable and higher-value land uses”
- AUD2m towards disposing of treated timber posts, which are used for trellising
- A further AUD1m will be available over two years to provide growers with “independent diversification planning advice”
- AUD500,000 has been allocated over two years for “assessment and development of industry-led solutions” to address the region’s surplus wine inventories
- An additional AUD5.68m will be focused on export & market growth, including a targeted marketing campaign for South Australian wine
The announcement follows a meeting in mid-August between grape growers, producers, trade bodies and South Australia’s Premier, Peter Malinauskas.
At the time, officials said: “Across the state and the nation, the sector is facing significant pressure from global oversupply, declining grape prices, changing demand and ongoing impacts from previous international trade disruptions.” (In March 2024, the authorities in China agreed to scrap 220% tariffs imposed on Australian wine in late 2020.)
Responding to last week’s announcement, the Wine Grape Council of South Australia (WGCSA) described the package as a “lifeline for growers” and “good news for regional South Australia”. Chair Rachel Triggs said: “This is a significant and welcome package for South Australian grape growers, coming at a time when the sector is facing its toughest conditions in decades.”
South Australia has 680 wineries, 3,143 vineyard owners and 73,156 hectares of vineyards.
A return to normal shipment levels to China last year drove Australia’s total wine exports downwards in the 12 months to December 2025, according to figures released by trade association Wine Australia in January.
