Wine Industry APC Committee Members Selected

The establishment of the APC Wine Producers’ Committee is progressing to schedule. To date, the following requirements have been completed:

·       A Producers’ Committee has been appointed by the APC Commission. See below for a list of the members. As there were 10 individuals who applied, the Commissioners determined that it was appropriate that all 10 should be appointed. The appointees provide a good representation of industry with regard to region, scale of operation and position in the value chain. The resulting (randomly occurring) structure of the Committee closely reflects the requirements of the WoWA Board under an APC: 5 regional representatives; 3 for scale of production ( < 150 tonnes, 151 – 1000 tonnes, >1000 tonnes); and grower representation.

An initial meeting date for the Committee has been set – Friday 11th March, 1pm – 3pm
·       Regulations specific to the wine industry are at second draft. These reflect the method of collection defined through our industry ratification process as noted below:

-          Fee paid by the owner of fruit at the crusher
-          Fee for service to paid based on tonnes of fruit processed

The schedule going forward is:

·       Regional Associations and WoWA to develop budgets and identify appropriate fee for   service rates through consultation with producers
·       Budgets and FFS rates presented to Committee for approval. 
·       Upon Committee approval, budgets/FFS rates presented to Commissioners for approval
·       With Commissioner approval, FFS charge is submitted to Minister for Agriculture for approval. FFS charge will be gazetted / published at least 14 days before date of commencement of charge.
·       FFS collection to commence on the date specified in the gazetted notice ( more detail on this to be provided when regulations have been approved)

See here for further information on the WA wine industry APC Producers' Committee, or contact Larry Jorgensen on:
E - ceo@winewa.asn.au
M - 0448 884 161

Wine Industry agrees on a plan for industry reform

Wine industry leaders and representatives came together in Adelaide on Tuesday, December 1, to progress discussions and agree a plan for undertaking industry reform to enable representative organisations to contribute to a return to profitability.

In late August more than 40 wine industry leaders from across Australia gathered in Adelaide at Grape and Wine 15 to reach consensus on how representative bodies could play their role in assisting the industry return to profitability. See a summary of this meeting here.

The collective group, representing all sectors and states acknowledged that the structure and relationships between the various wine industry representative organisations are one of the mechanisms that can contribute to addressing these issues and help move the industry towards a more sustainable & profitable position.  It was agreed that a strong collective voice from industry was an important part of the solution.

On December 1 the group re-convened to discuss possible pathways to delivering better outcomes for all industry participants.

The meeting reached consensus on a number of issues and agreed on a plan and way forward as follows:

1. delivering the best outcomes for all industry participants will be most likely through a single industry services body

The industry would ultimately be best served by a single, industry owned service organisation.  This organisation may assume responsibilities including the current R,D&E, marketing, regulatory and other functions currently provided by AGWA along with the suite of services and industry representation provided currently by national and state representative organisations.

The meeting agreed that this structure would provide:

o a real and clear opportunity to establish unity of purpose, strategy and execution across all levels of representation; 

o the best chance of delivering against the agreed key issues and provide an opportunity to improve the services and capacities of the industry organisations; and

o an alignment with how levies are spent and industry regulation is shaped and implemented.

The meeting also recognised the significant challenges faced in transitioning to a governance model such as this.  While it remained the preferred solution, the meeting agreed that:

o A working group should be established to guide the development of a plan to transition to this model.  The working group should, in the first instance, include members of the current Steering Committee but, at their discretion, look to invite or accept nominations from other stakeholders.

o The working group should in the first instance undertake work so as to more clearly identify key aspects of the process.  This should include an identification of, and consultations with, the key stakeholders who will need to be engaged, the potential risks associated with progressing towards this model, the pathway to, and timing for a transition to this model and an understanding of the transition and recurrent funding likely to be required for this new whole of industry services body.  It was hoped that this initial scoping work could be completed by the middle of 2016 with the outcomes provided back to the industry leaders at that time.

o The process of firstly examining then transitioning to a new whole of industry services body must be contingent upon the commitment from all industry stakeholders.  As likely beneficiaries of the benefits, it was expected that all current industry bodies (national, state and regional) would make a financial, time and resource commitment to all stages of this process.

2. Delivering outcomes of a united industry voice through merger of national bodies and incorporating state and regional bodies

The meeting agreed that while the program of work was underway the industry should commence negotiations towards implementing changes to the current organisational structures so as to facilitate:

o a stronger positioning of a unified industry, clearer on its strategy and plans for the future; and

o an improved opportunity to deliver against the identified significant obstacles, against the business and operational performance objectives and benefits, improved services and capacities. 

The meeting agreed that the National and State Chairs of the industry representative bodies (along with the Chairs from Riverland, Riverina and Murray Valley) should take carriage of this process.  The working group was also identified as the mechanism to support the Chairs in this process.

The meeting provided strong encouragement to Chairs to consider:

o the potential benefits that should be available from creating a single national representative organisation that will represent all industry and assume the current roles of WFA and WGGA;

o building greater capacity and capability at the regional level through the integration, over time, of smaller regional bodies into better resourced organisations; and

o the integration of the current state organisations with national responsibilities to deliver a single integrated representative body that would deliver a range of industry services along with appropriately resourced and skilled representation at both national and state levels.

It was also agreed that these changes were contingent upon the financial, time and resource commitment from all national, state and regional associations.

It was recognised that while industry leaders desire this unified outcome, the decisions were up to the different national, state and regional boards.

The agreed outcomes from this second industry leaders meeting provide a pathway for industry to build a sustainable, fit for purpose industry organisational structure.  The changes were seen as both necessary and a pre-requisite to enabling the key issues facing industry to be more effectively and efficiently addressed and ultimately resolved. 

                                               
Tony D’Aloisio AM                                                     Joanna Andrew
President                                                                     Chair
Winemakers’ Federation of Australia                            Wine Grape Growers Australia

A sustainable funding model for the WA wine industry

The strategic review of the WA wine industry undertaken in 2013-14 identified industry representational structure and adequately funded representation as critical to the future success of our industry. The resulting industry stakeholder endorsed strategic plan  provided a template for industry representational structure that is unified, focused, lean and influential. 

A copy of the strategic plan is available here:  2014 -24 WA Wine Industry Strategic Plan

The strategic review process also confirmed that industry supported the investigation of a secure funding model for industry representation and development and requested that Wines of WA should undertake this process on their behalf.

The most suitable model identified was the Agricultural Produce Commission (APC), a State statutory body established to collect fees on behalf of industry participants to provide services for their industry.  Wines of Western Australia has worked collaboratively with Regional Associations to develop an APC model for the WA wine industry.  This model has been developed through an extensive consultation process which started in July 2013 and concluded in August 2015.  The resulting model was formally ratified by all nine Regional Associations on 31st July 2015.  A copy of the minutes of this meeting is available here.

Given this mandate, Wines of WA wrote to the APC stating the WA wine industry’s intention to poll producers on the establishment of an Agricultural Produce Commission (APC) to support industry development.  A copy of this letter is available here.

The following information provides an overview of the APC and how it can work to provide sustainable funding for the WA wine industry:

Producers can get more information by:

HAVE YOUR SAY ON INDUSTRY REPRESENTATION

HAVE YOUR SAY ON INDUSTRY REPRESENTATION
Grower and Winemaker survey

Dear Industry Colleague,

At the end of August, a wine industry leaders' meeting 'Grape and Wine 2015 - A Focus for Action' will be held in Adelaide. 

It will have two objectives: 
• the first to agree on the 2 or 3 key issues to accelerate return to profitability and which will be advanced with united industry support from representative bodies; and 
• secondly to achieve agreement or a process to reach agreement on an optimal future representative industry structure that presents a united industry voice on key issues, and maximises industry’s resources and influence, and at the same time values state and regional representation.

A small group of national and state industry leaders has been working on the concept and details of the leaders’ meeting since late 2014 following agreement that a more united approach is required to effectively work through the industry’s challenges and opportunities. 

Intuitive Solutions has been engaged to undertake some work in advance of this industry meeting. 

About the Survey:
• This survey should take approximately 15 minutes to complete.
• Survey close date: 19 August 2015
 Click here to start the survey.

Note: If you have difficulty with the link above, please copy the URL shown below and paste it into your browser:
http://surveys.intuitivesolutions.com.au/s3/GrapeAndWine15

If you have any queries about the survey, please contact Mitch from Intuitive Solutions at mmunro@intuitivesolutions.com.au

Wine Australia Releases Strategic Plan

Media Release
Wednesday, 1 July 2015

Wine Australia: working towards a prosperous Australian grape and wine community.

Increasing the demand and premium paid for Australian wine and increasing its competitiveness in the global market are the two priorities that underpin Wine Australia’s five year Strategic Plan 2015-2020, released today.

Wine Australia Chair Brian Walsh said, ‘Over the next five years, we will annually invest somewhere in the order of $35 million in research and development, building markets, disseminating knowledge, encouraging adoption and ensuring compliance as we work towards our goal of a united and prosperous Australian grape and wine community.

"Our investments will be guided by the strategic research priorities of the Australian grape and wine community and the Australian Government."

In response to feedback from the wider grape and wine community, from 1 July, the majority of our activities will be conducted under the name Wine Australia, our long-established brand used for our market development activities.

For those who participated in the consultation process and wish to understand how their contributions helped to shape the final Strategic Plan, how feedback was incorporated is outlined in the Strategic Plan 2015–2020 Feedback Summary.

Read the Strategic Plan, Strategic Plan Feedback Summary or the Annual Operational Plan here ...

‘This five year Strategic Plan was developed after extensive consultation with grape-growers, winemakers and the broader Australian grape and wine community about their priorities. I would like to thank everyone for their thoughtful contributions.’
The Annual Operational Plan 2015-16, has also been released today and is available on the Wine Australia website.
— Brian Walsh, Chair Wine Australia

WFA Cocktail Function with Parliament - President's Speech

WFA Cocktail Function with Parliament - President's Speech

Wine is not like, for example, some other manufacturing operations such as motor vehicles where we have lost our competitive and comparative advantages.

Wine making remains one of our few manufacturing industries where we can compete.

To emphasise the export growth opportunity: Australia’s share of global exports is 7% and Spain’s is 23%. Can anyone here doubt that our wine is as good and better as Spain’s

Read More

Wine Industry Leaders’ Meeting – Grape and Wine 2015 - A Focus for Action

Statement to Members and Industry Stakeholders

Wine Industry Leaders’ Meeting – Grape and Wine 2015 - A Focus for Action

 A wine industry leaders’ meeting ‘Grape and Wine 2015, A Focus for Action’ will be held in August. 

The leaders’ meeting will have two objectives:

  • The first is to agree on the 2 or 3 key issues to accelerate return to profitability and which will be advanced with united industry support from representative bodies.
  • The second objective of the leaders’ meeting is to achieve agreement or a process to reach agreement on an optimal future representative industry structure that presents a united industry voice on key issues and maximises industry’s resources and influence and at the same time values state and regional representation.

Wines of WA will facilitate participation by WA in the meeting through engagement with producers and Regional Associations.

A small group of national and state industry leaders have been working on the concept and details of the leaders’ meeting since late 2014 following agreement that a more united approach is required to effectively work through the industry’s challenges and opportunities.

Grape & Wine 2015 will be held in Adelaide at the National Wine Centre and attended by approximately 40 national, state and nominated regional industry organisations to enable open discussion and achieve meaningful outcomes. In the selection of representatives an emphasis will be placed on diversity and the next generation of leaders of the industry. To ensure engagement with the whole industry, an industry survey will be conducted prior to the Summit in addition to engagement with regional associations and their members via the State Wine Associations.

An independent consultant will help facilitate the Grape & Wine 2015 and undertake important pre-work in identifying the key issues facing industry and what can be done to improve alignment and collaboration across the industry bodies on behalf of levy payers and members.

An expected outcome from the Summit will be agreement on what organisation reform is required to achieve a more united and effective industry voice and what interim arrangements can be put in place to progress the key issues in front of industry.

The need for a Summit is also supported by the South Australian Wine Industry Association, Wine Tasmania, Wine Victoria, New South Wales Wine Association and the Queensland Wine Industry Association. Growers groups are also supporting the initiative including Wine Grape Growers Australia, Murray Valley Winegrowers, the Wine Grapes Marketing Board, the Riverland Wine Industry Development Council, the Wine Grape Council of South Australia, and the Winemakers Federation of Australia.

Wines of WA will provide further information shortly to ensure all WA producers and their Regional Associations are given every opportunity to contribute to the process.