Riverland winegrape growers call for 'immediate financial support'

The message was loud and clear to government from Riverland winegrape growers at a crisis meeting held at Barmera on Wednesday.

More than 175 growers and wine industry representatives gathered in the town to discuss their challenges and propose solutions on how the industry and wider communities would get through one of the toughest times in the sector in living memory.

Much of their woes are being attributed to a global oversupply of red wine, driving winegrape prices down in the region, and tastes shifting away from once-popular varieties.

While the re-emergence of China into the marketplace is being touted as a potential saving grace, growers were warned that was unlikely to be the case because their appetite for red wine was not enough to cover over-production.

In an emotionally-charged event, growers shared stories of toiling away only to get paid less than the cost of production for their grapes, often getting paid $150/t for varieties that cost them $300/t to produce.

One man said prices were similar to those received in the 1980s, while input costs such as fuel and fertiliser had skyrocketed.

Others said they had no ability to pay back debt, while stories were told of people in their twilight years that were forced to keep running vineyards at a loss because they were unable to pass an asset test to get a pension, but at the same time were unable to sell their vineyard because there were no willing buyers.

Riverland Wine, who convened the meeting, will collate grower views and write a letter with recommendations to Premier Peter Malinauskas and Primary Industries Minister Clare Scriven, as well as the other two tiers of government.

One proposal that all growers agreed upon was the need for immediate financial support.

Riverland Wine executive officer Lyndall Rowe said the situation was "desperate", with fears the region would be "decimated" without support.

"Our growers need immediate crisis support, and we will be putting their suggestions to our local councils, the state government and the federal government, and we are hoping our industry partners will support our calls to help save the nation's largest grape growing region," she said.

"It's not just our growers - as a viable and strong industry in our region, we create jobs for grape pickers, winemakers, wineries and local hospitality venues, transport providers, local retailers and more.

"The flow on effects if our growers can't run profitable businesses are significant and far-reaching."

Jack Papageorgiou, a Cooltong grapegrower who has been in the industry for 50 years, has never seen the industry in such turmoil.

"It's a very serious struggle," he said.

"There's a lot of stress and families are sitting around the table trying to find a way forward."

Also a board member of Riverland Wine for 20 years, he had three proposals to help the industry recover.

One, a government-funded exit package for those who wish to leave the industry. A recent wine industry blueprint showed that nearly 25 per cent of Riverland winegrape growers were considering leaving.

"They could keep their farm, their house, their plant and machinery, but have a buyback of water," he said.

"That's the trade off for the government. Government would also need to support vine removal for biosecurity reasons."

Mr Papageorgiou said growers wishing to stay in primary production could be supported with a transition package so they could get established in another sector.

"That would keep them and their water infrastructure contributing to the Riverland economy," he said.

He also said winemakers had to be transparent with how many grapes they needed for their crush each year and be honest with growers on how much supply was needed.

"They need to identify growers who are going to going to give them that ongoing supply for the next 5-10 years and work with industry and government to support those growers through."

Other suggestions to come from the floor included paying growers who wished to leave and establishing a grapegrower licence if they wished to return.

Others said that if the oversupply story was legitimate, corporate plantings should be limited ahead of family-owned businesses.

A Winkie grapegrower said that while there were varying views on water buybacks, they had to be an option for growers bereft of any other way to exit the industry with dignity.

A petition organised by Amanda Dimas, Save Riverland Wine, suggested the state government pay growers $300 a tonne to drop Shiraz & Cabernet Sauvignon on the ground.

The idea would pay harvesters, pay growers and ensure wineries didn't end up with tanks of unmovable product, the petition said.

There are serious concerns about what the future of the wine industry in the Riverland could mean for complimentary businesses and the region at large.

Maria Sialas has run vineyards for 25 years, has owned a vineyard services contracting business for 18 years and an agriservices shop in Renmark for seven years.

She said the older generation, like her father who had been in the game for 60 years, were looking to move on, her generation had "had a gutful" and her children's generation were being driven away.

"Kids like my own left the region for work or for study but then started coming back to get married and have kids," she said.

"The Riverland has a special place in their hearts, but this is going to drive them away again and the region is going to be a ghost town.

"I have three businesses and the sad fact is I don't want my kids to take over any of those businesses - I did 6-7 years ago, I begged them to come back but I don't want them to be involved anymore."

Mrs Sialas said financial support was needed "immediately".

"It costs at least $330 a tonne to produce grapes, pick them and get it to a winery and we're getting paid $150/t for our Shiraz," she said.

"It's ridiculous. I'm also an organic grower whose paid to get my certificate and that's got me nowhere."

She said producers had been struggling more and more to pay their invoices at her Renmark agriservices business, while they were often unsure if they'd get paid for contracting work.

"I might finish harvest and have $250,000 outstanding to me, it's a hard way to operate" Mrs Sialas said.

Despite media coverage, Mrs Sialas said her and other growers still did not feel like they were being heard by the powers at be.

"if we were getting heard, something would have happened," she said.

"We need immediate relief. People can't pay their bills."