$50m investment to boost further growth in Australia’s wine sector

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Julia wine-tasting at D'Arenberg Winery, McLaren Vale.
Wine-tasting at D'Arenberg Winery, McLaren Vale.
Alpha, Flickr CC, wwwflickrcomphotosavlxyz

Leading industry body Wine Australia welcomes the announcement by the Australian Government to invest $50 million in the nation’s wine sector to underpin export growth and domestic wine-related tourism.

“The grape and wine sector brings together agriculture, sophisticated production and tourism and it is a vital part of the rich fabric of regional Australia,” said Wine Australia Chair Brian Walsh following the government’s announcement.

‘We welcome this initiative and we look forward to working closely with the grape and wine sector to design and implement the $50 million support package to help boost domestic wine-related tourism and export assistance.

‘Wine is a unique, high-quality product created in Australia’s 65 wine regions by highly skilled wine-grape growers and winemakers. These new measures will help build regional employment and increase the wine sector’s contribution to the Australian economy,” he said.

Under the initiative, Wine Australia will coordinate several initiatives designed to assist regional wine producers and export-focused businesses in continuing to expand.

The government’s funding package comes at a key time: in the past 12 months, wine exports have grown by 13 percent and now earn Australian-based wine exporters $2.1 billion annually.

Wine-tasting at Penfolds cellar door: wine tourism is a big contributor to the Australian economy.
Wine-tasting at Penfolds cellar door: wine tourism is a big contributor to the Australian economy.
Andrew Moor, Flickr CC

New report shows wine sector’s growing contribution to Australia’s economy

Wine Australia recently commissioned independent economic research to quantify the direct and indirect contributions of Australia’s wine sector to the national economy.

The findings from AgEconPlus and Gillespie Economics, detailed in ‘Economic Contribution of the Australian Wine Sector’, show that our wine industry’ defined as ‘winegrape growing, winemaking and wine-related tourism’:

  • supports 172,736 full- and part-time jobs, most of which are based in regional Australia.
  • collectively contributes $40.2 billion annually to the value of gross output to the Australian economy;
  • has a gross output of $19.7 billion in value (value-added – or the difference between the cost of goods and their sale price) and
  • accounts for $10.4 billion per annum in wages and salaries for full- and part-time industry jobs.
  • accounts for 15.8 million domestic visitor nights and 44.2 million international visitor nights in wine-related tourism, an integral part of Australia’s tourist offering that contributes $9.2 billion annually to the nation’s economy.

These figures, notes Wine Australia, do not incorporate margins on wine sales through wholesale, retail and restaurant sales.

The Australian wine sector includes around 5,160 grape growers, 135,178 hectares of vines and 2,900 wineries, and produces 1.2 billion litres of wine a year.

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