South Australian grape growers will have access to loans of up to $500,000 to turn unviable vineyards into more sustainable uses under the South Australia Wine Industry Transition and Growth Package, the state government says.
The $100 million of government-backed loans will have no principal or interest repayments for the first two years. At the maximum loan size, the scheme would fund at least 200 growers.
The sector is worth $2.4 billion to the state and produces 80 per cent of Australia’s premium wine. It employs around 900,000 people but has been struggling with global oversupply, falling grape prices and shifting consumer demand since the pandemic.
Treasury Wine Estates chief sustainability officer, Kerrin Pettty said the company welcomed the government’s commitment to backing growers, producers and regional communities.
“South Australia’s wine industry is built on generations of investment, innovation and regional expertise, and this support provides important confidence as the sector responds to changing global markets and consumer preferences,” Petty said.
The package follows moves by the state’s largest producers to shrink and reshape their supply bases. Treasury Wine Estates announced this week it is selling the Seppelt brand to Stonier.
In June it would cut its brand portfolio from 76 to fewer than 30, with supply chain consolidation in Australia and California, after earlier selling more than 1000 hectares of South Australian vineyards at Bordertown and Langhorne Creek to concentrate on premium and luxury wine.
Outside SA, De Bortoli is removing underperforming blocks in the Riverina, citing oversupply and depressed grape prices, while replanting and top-grafting elsewhere to varieties with stronger demand.
The package was developed after a government-convened wine industry forum and builds on existing state and federal support, including the Global Wine Growth Program, first funded at $3.9 million in 2025, and Riverland Wine’s industry blueprint, which sought short-term adjustment support and regional diversification.
Details on how to access the loan package are yet to be released. A further $9 million has been allocated for market development, waste and planning measures:
Export and market growth: $5 million to extend the Global Wine Growth Program for a further two years, plus a $675,000 advertising campaign promoting the state’s food and wine.
CCA post disposal: $2 million for government, councils and industry to develop a waste solution for copper chrome arsenate treated timber posts, including regional aggregation and storage sites. The posts become a disposal problem as vineyards are pulled.
Transition advice: $1 million over two years for independent diversification planning advice for growers.
Surplus inventory: $500,000 over two years to assess and develop industry-led solutions to surplus wine stocks.
Coordination: A new Wine Industry Coordinator to identify barriers to an orderly transition and work across industry, government and regional stakeholders.
Planning: The Riverland Economic Recovery Joint Code Amendment will open up housing and employment land in the Riverland, giving growers additional land-use options.
