Posted February 05, 2019 08:47:04 Australian wine price rises are set to continue despite the government lifting a ban on importing wines from overseas.
But what can you expect when the country’s most sought-after products hit the market?
Read moreThe Australian Wine Commission (AVC) has announced it will be lifting the ban on imports of Australian-grown grapes from overseas and allowing Australian wine producers to grow their own.
The announcement is expected to take effect in January.
Read more”This decision is aimed at providing certainty for consumers, while maintaining the strength of our existing supply chains,” AVC president Andrew Brown said.
But what does the move mean for wine growers and consumers?
In the past, winegrowers have relied on imports from overseas because it is cheaper to import grapes than grow them on their own land.
But as prices have gone up, producers have had to switch to more costly methods of growing grapes and import grapes from abroad.
To meet rising demand, producers in recent years have relied heavily on imports.
But now that Australia’s wine market is expected, it will also be a new reality for producers.
The move will bring increased competition into the Australian wine market and raise prices for Australians.
In fact, there are now plans to open up Australian wine production to foreign growers.
Vineyards in Queensland, Victoria and Western Australia will now be able to produce their own grapes and grow them themselves.
But for producers, the announcement is not all good news.
Vineyard owner and producer Dave Williams said that with the introduction of foreign growers, he has been forced to switch from importing grapes to growing them.
“I was very reluctant to go and buy grapes from foreign producers because I knew that we would have to make some money on that as well, so I had to think long and hard about that,” he said.
“In a couple of weeks, I’m going to be starting to buy grapes again, and that will help me pay the rent, so it will make me feel a bit better.”
Williams is optimistic about the changes because he is still making a profit on his grape business.
“The first two years have been very good, so in a way, it’s a bit of a blessing, because I’ve been able to buy more grapes and not have to rely on imports,” he explained.
“But the downside is that I’m having to work more hours to pay the bills, which is really hard on people in the industry.”
Williams said that the new system will also affect his business and the other winegrower businesses in the state.
“If I am able to grow a little bit of wine locally and export it to the mainland, that will reduce my costs, and the wine market will grow more competitive.”
We’ve been growing grapes for 10 years now, so we’ve got a pretty good track record of being able to do that, but I think that the price of grapes will go up, and we’ll be less competitive in the domestic market, which means we’ll have less money to spend on imports and more on export.
“Williams, who owns an extensive wine list, has a number of vineyards, including a number in his own backyard.
But he said that he is optimistic for the future.”
This change in the policy will create a very good environment for Australian producers,” he told ABC News Breakfast.”
There’s been some really good results in the last year, so there’s a lot of opportunity there.
“Williams believes that if producers can increase their productivity, they will also see a higher price for Australian consumers.”
It’s going to make us a lot more competitive in terms of our prices,” he added.”
So we’ll make a lot less money in terms, I guess, of what we produce, and I think there will be a lot fewer wines available to consumers.
“I’m not sure we can compete at all, but we’re certainly going to have to compete.”
Read moreRead moreWhy are wine prices up?
The move comes just weeks after the AVC announced it would be allowing Australian-made winegrowery operations to grow and sell their own wine.
“It is a big step forward for Australian winegrowler’s industry and it’s another step towards creating a more competitive domestic wine market,” Brown said in a statement.
“While there will still be a large amount of wine that’s made locally, it won’t be available to the Australian consumer.”
The changes come after the Australian Competition and Consumer Commission (ACCC) ruled last year that winegrowlers in Western Australia had to pay up to AUD1,000 for every litre of wine they produce.
This ruling forced winegrowerers in Western Victoria to change their policies to ensure they could produce their wine at home, which was cheaper.
The new changes will see winegrowters in Western Queensland, New South Wales and Victoria be able grow up to