Potential concerns over winemaker contracts has sparked an ACCC market study into the wine grape industry.
The ACCC said it initiated the study after grape growers raised concerns about a range of competition issues and contracting practices in the industry.
The competition watchdog will examine competition, contracting practices, transparency, and risk allocation issues in the wine grape supply chain.
“Growers have told us they carry too much of the risk in their contracts, and many say there is a lack of competition between buyers for their grapes,” ACCC Deputy Chair Mick Keogh said.
“Some growers have also told us that they receive limited pricing information and are subject to opaque quality standards imposed by winemakers, which can have a major impact on prices they receive for their grapes.
“We want to get to the bottom of these concerns and, if necessary, make recommendations to improve the competitiveness of the market.”
Competition and consumer issues in the agriculture sector, including a focus on analysis of the wine grape industry, are its current priorities, according to the regulator.
The ACCC has released an issues paper and is seeking written and oral submissions.
