Following on from the ACCC Winegrape Market Study Final Report released in September last year, a number of leading winemakers from across the country have agreed to change their supply agreements with grape growers.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The two-year investigation undertaken by the ACCC highlighted a number of contractual concerns, prompting change in the industry.
Riverina Winegrape Growers Chairman, Bruno Brombal, believes the changes are positive, but lingering doubts remain surrounding lengthy payment periods.
"Most growers have got to pay their bills in 30 days," Mr Brombal said.
"Of course it's going to take a little bit to convert over, but we're sticking to our guns at this stage.
"My board states that we stick with the ACCC recommendation of 30 days."
Multiple growers have put forward complaints surrounding the payment terms of their contracts, some waiting over nine months before being fully paid for their grapes.
While the ACCC's findings have prompted positive change, their recommendations still remain voluntary, which has left some growers holding the short end of the stick.
Riverina Winegrape Growers CEO, Brian Simpson, is eager to see local winemakers embrace the voluntary Wine Industry Code of Conduct.
"If they adopt the code, it will set a better framework for business relationships between grape growers and winemakers," Mr Simpson explained.
"The risks are if we don't get enough signatories across Australia, the ACCC may look to make it mandatory.
"That might not be in the best interest of wineries, and we'd rather work with them than against them."
Wine Australia, Australian Wine Research Institute, Australian Grape & Wine and the ACCC will continue working closely together to ensure responses to the recommendations in the final report are both timely and appropriate.
