wine grape growers australia wgga program … lawrie stanford-august...wine grape growers australia...
Post on 03-May-2018
221 Views
Preview:
TRANSCRIPT
August 2014 Wine Grape Growers Australia Slide 2
Today’s agenda …
1. WGGA’s priorities for 2014-15
2. Detailed discussion on the top priorities
i. Biosecurity
ii. Market access (how your grapes get sold)
iii. Knowledge and information
iv. RD&E
v. Organisational structure
3. Supply and demand going into 2015
August 2014 Wine Grape Growers Australia Slide 3
WGGA Strategic Priorities, 2014-15 …ST
RA
TEG
IC P
ILLA
RS
1
2
3
4
5
6
Ena
blin
g s
tra
teg
ies
Critical issues
Building organisational capacity
Policy and advocacy
Engaging stakeholders
Cultivating relationships
Corporate governance
High
Medium
Low - no action
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
Biosecurity and vine health
Market access for winegrapes
Knowledge and capacity development
Research, development & extension
Supply and demand balance
Wine tax
Industrial relations
Environmental sustainability
Water access
Delivery fo
r gro
wers
ISSUES M
AN
AG
EMEN
T
August 2014 Wine Grape Growers Australia Slide 4
What happens if an exotic pest (eg Pierce’s disease) is found?
Pest reported
Confirmation of pest identification
Notification
Property quarantine restrictions
Delimiting surveillance
Actions to eradicate the pest
Determine course of action (eradicate or not)
Agree to fund eradication
State and local level National level
Dept of Agriculture(commonwealth government)
Affected industry parties (WGGA, DFA, ATGA, NGIA,
ABA, CA)
Notification
Agree to not eradicate
Manage the pest
Plant Health Australia
<<< >>>
August 2014 Wine Grape Growers Australia Slide 5
National biosecurity arrangements…
1. In 2013, WGGA engaged a biosecurity officer (p/t, 11 mnths)
2. Primary tasks
i. Fulfill obligations to the EPPR Deed
ii. Establish an Industry Reference Group (IRG)
iii. Write an industry Strategic Plan/Business Case for
national industry viticulture biosecurity arrangements
3. The appointment has finished, needs to be re-funded
4. IRG established, foundation plan written, EPPRD obligations
are on-going
5. In the midst of a funding appeal
August 2014 Wine Grape Growers Australia Slide 6
Market Access – Wine Industry Code of Conduct …
1. Widespread dissatisfaction with how the Code is
operating
i. Winemakers – don’t want to sign on
ii. Growers – it doesn’t work
2. The Code Management Committee (CMC) – monitors
and makes changes to the Code as required
3. CMC agreement -
i. It’s not working
ii. It is vital that there is something in place
4. Action
i. Short-term – refine the existing Code
ii. Medium- to long-term – consider alternatives?
August 2014 Wine Grape Growers Australia Slide 7
Wine Industry Code of Conduct … action
Short-term focus
• Uptake by wineries
• Indicative prices
• Awareness of the Code(wine companies, growers, organisations)
• Compliance with contract practice
• Adaptability to changing circumstances
• Winegrape grower confidence to dispute
Long-term focus
• Mandatory Code
• The Horticulture Code
• Voluntary prescribed code
• Collective bargaining
• Principles of commercial
behaviour
August 2014 Wine Grape Growers Australia Slide 8
Phos Acid MRL negotiations …
1. China
i. In-market agent engaged and is negotiating with Chinese
authorities
ii. MRL in place by end of 2014?
2. CODEX
i. Develops harmonised international food standards,
including for fair trade – the standards become world-wide
default position
ii. Australian trials are being conducted to make a
submission
August 2014 Wine Grape Growers Australia Slide 9
WGGA’s proposition … about ‘let the market sort it’
1. Competitiveness = f(value, X, Y, Z …)
2. Value = f(price, quality)
3. Value = (X%.price + Y%.quality) where X + Y =100%
4. Profitability = f(Supply, Demand)
5. Where; Supply = Demand ie (S – D) = 0, balance exists
6. Balance = f(effective market signals)
7. Therefore; (S – D) = 0 = effective market signals
8. Effective market signals = price signals + quality signals
August 2014 Wine Grape Growers Australia Slide 10
Traditional commercial practices do not provide effective
market signals …
… there are numerous commercial practices in the sector that
prevent the industry adjusting
1. Problems in the vineyard investment dynamic
2. Problems with price determination mechanisms
3. Problems with terms of trade (unfair sharing of risk)
4. Growers are deprived of effective decision-making tools
… it’s about market signals that don’t work to help the market
operate effectively
… it’s about practices that are unfair to growers
August 2014 Wine Grape Growers Australia Slide 11
Market signals for quality …
WFA Expert Review;
“Improving quality … has the potential to help address the oversupply of
commercial grade grapes”
“WGGA … advocated the importance of stronger market signals being sent to
growers through the adoption of objective measurement systems”
“WFA does not support such systems being adopted at the industry level”
“Ultimately, WFA believes that economic forces will continue to be the primary
driver to further adjustments in the market.”
August 2014 Wine Grape Growers Australia Slide 12
0
200
400
600
800
1000
1200
1400
1600
1800
20009
0 -
91
91
-92
92
-93
93
-94
94
-95
95
-96
96
-97
97
-98
98
-99
99
-00
00
-01
01
-02
02
-03
03
-04
04
-05
05
-06
06
-07
07
-08
08
-09
09
-10
10
-11
11
-12
12
-13
13
-14
14
-15
15
-16
16
-17
0
15
30
45
60
75
90
105
120
135
150
Pro
du
ctio
n (
bar
s) t
on
ne
s ‘0
00
Be
arin
g ar
ea
(sh
ade
d b
ackg
rou
nd
)h
ect
are
s ‘0
00
Bearing Area Red White Tonnages left
A gap is left by the absence of a Vineyard Survey …
August 2014 Wine Grape Growers Australia Slide 13
Foundation data at risk …
Data Source Cost Defunct Cost of industry ownership
Viticulture ABS on a user-pays basis
$500k, 2008$1mill, 2009 (for less)
From 2012 $1mill establishment (?), $250k-$300k annual maintenance (?)
Wine production
ABS $0 From June 2014 (last report September 2014)
$150k-$200k (?)Domestic sales
Inventory
Export sales Wine Australia
? Compliance arrangements a risk but the collection is secure at this stage
?
August 2014 Wine Grape Growers Australia Slide 14
Research, Development & Extension …
1. WGGA has a policy – www.wgga.com.au
2. A unified WGGA/WFA RD&E Policy is being scoped
… in a brave new world, industry RD&E (GWRDC) is now
merged with industry marketing/regulation and knowledge
development (Wine Australia Corporation),
… so that all these functions have the same agenda and
strategy.
August 2014 Wine Grape Growers Australia Slide 15
AGWA
WFA
$ - SA Levy,
Affiliation,
Project funding ,
general
subscription
Levy $
Levy $ Levy $
WinemakersWinegrape
Growers
Voluntary
Subscription $
SERVICES AGWA – Australian Grape and Wine Authority (merger of the previous Wine
Australia Corporation and Grape and Wine Research and Development Corporation)
Joint Policy Forum
RepresentationRepresentation
ADVOCACYWGGA - Wine Grape Growers Australia
WFA - Winemakers’ Federation of Australia
National organisational structure – after (1 July 2014)
August 2014 Wine Grape Growers Australia Slide 16
Organisational capacity … $’s
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WFA WGGA Prominent regionalassociation
August 2014 Wine Grape Growers Australia Slide 17
Greater integration with WFA?
Assurance
Programs
Biosecurity
Entwine
Food Safety
WFA or WGGA
WFA/WGGA
Economics
Knowledge
development
Supply&Demand
WFA or WGGA
WFA/WGGA
Technical
R&D
Packaging
Wine Law
WFA or WGGA
WFA/WGGA
Wine Tax
WET
WET Rebate
WFA
WFA/WGGA
Market Access
FTAs
MRLs
WFA
WFA/WGGA
Wine and Health
Wine and Health
WFA
WFA
Commerce –
winemaking
Retailer Code
Terms of payment
WFA
WFA
Commerce –
grape growing
Industry Code
Terms of
payment
WGGA
WGGA
Committee
Topics (examples)
Chair
Members
Legend
Wine Grape Growers Australia Colleges:
Corporate, Major (50+ hectares), Small/Medium
(<50 hectares)
Winemakers’ Federation of Australia Colleges:
Large, Medium, Small
5 representatives? 5 representatives?
Grape and Wine Council of Australia
August 2014 Wine Grape Growers Australia Slide 18
Supply and Demand … simple stats
2014 harvest size – best guess 1.65mt to 1.70mt
2012 >> 2013 sales of Australian wine (domestic plus exports)
1,175 mL >> 1,134 mLs (-3.5%)
Any good news? Yes, but …
Export unit values up (1%) – but – overall value down 5%
For the first time for years, imports stablised – but –
NZ imports up 3.4%
August 2014 Wine Grape Growers Australia Slide 19
Prices and production
1.61
1.40
1.92
1.93 1.90
1.40
1.831.73
1.60 1.60 1.62
1.75
100
200
300
400
500
600
700
800
900
1 000
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.01
98
6
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
$/t
on
ne
mill
ion
s to
nn
es
Winegrape crush (LHA)
Winegrape price (RHA) – nominal
Winegrape price (RHA) – real
August 2014 Wine Grape Growers Australia Slide 20
WGGA view of ‘balance’
Stocks-to-sales (raw) is stocks measured against all sales, Stocks-to-sales (adj.) is stocks measured against ‘profitable’ sales (using as an indicator, all sales net of
export sales at <$1/litre)
Stocks-to-sales raw
Stocks-to-sales (adj.)
Upper comfort level
Lower comfort level
1.00
1.20
1.40
1.60
1.80
2.00
2.20
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
Sto
cks
to S
ale
s R
atio
(re
tro
spe
ctiv
e)
August 2014 Wine Grape Growers Australia Slide 21
International situation
Wine consumption Wine production
August 2014 Wine Grape Growers Australia Slide 22
Any questions? ST
RA
TEG
IC P
ILLA
RS
1
2
3
4
5
6
Ena
blin
g s
tra
teg
ies
Critical issues
Building organisational capacity
Policy and advocacy
Engaging stakeholders
Cultivating relationships
Corporate governance
High
Medium
Low - no action
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
Biosecurity and vine health
Market access for winegrapes
Knowledge and capacity development
Research, development & extension
Supply and demand balance
Wine tax
Industrial relations
Environmental sustainability
Water access
Delivery fo
r gro
wers
ISSUES M
AN
AG
EMEN
T
top related