4 September 2018 Newsletter

 

 

FEATURE ARTICLES                                                                                      PDF Version

South Australian Wine industry Snapshot highlights growing optimism
Snapshot shows geographic expansion a key strategy for boosting sales
New laws for use of labour hire or contractors – Avoid a huge fine or jail
2018 Vintage report shows 8% increase in average purchase price
SA Wine Grape Crush Survey shows slight reduction
International Student Australian Wine Showcase 2018
SAWIA welcomes Rehnu Page

INDUSTRY & GOVERNMENT

New South Australian Export Accelerator Grants
Landscape South Australia Act / Planning reforms / Mineral Resources Bill  

EMPLOYEE RELATIONS & WORK HEALTH SAFETY

Have your say – Migration to South Australia
New entitlement to unpaid Family and Domestic Violence Leave
Important Case – Casual employee entitled to annual leave
SAWIA’s 2018 WHS Seminar to tackle key safety issues    

SALES MARKETING & PROMOTION

South Australian wine to star at Royal Adelaide Show
Growing Wine Exports / Growing Wine Tourism – New courses part of $50m package
Best of Wine Tourism Awards
Impact Conference
Visitor economy reaching record heights
Tour Down Under race dates
Upcoming events / award nominations

SUSTAINABILITY

Biodynamic agriculture course 

OTHER

Hostplus Superannuation Best in Show
Food Farm Future Conference
Fermentation Seminar
Australian Rural Leadership Program
South Australian farmland values report
Dates for your diary


 

Message from the Chief Executive

The 2018 South Australian Wine Industry Snapshot has been released providing valuable insights into our industry. The Snapshot results will guide SAWIA’s efforts to help the South Australian wine industry seize opportunities and respond to future challenges. Refer to the Feature Article below.

I look forward to seeing as many members as possible at SAWIA’s Annual General Meeting. This is your opportunity to appoint and elect members to the Executive Committee, while learning about the activities of the association over the past year and plans for the future.  At the Annual Luncheon that follows, Rodney Harrex (SATC Chief Executive) will make a presentation on the $2 million South Australian International Wine Tourism project. SAWIA members should RSVP right away if you have not already done so.

Nomination forms for Executive Committee positions have been circulated to members. If you want more information about serving on the Committee, please contact me on 8222 9277 to discuss.  

SAWIA, along with the Winemakers’ Federation of Australia, met with Stephen Wade (SA Minister for Health) to discuss the State Government’s position in relation to the Draft National Alcohol Strategy, pregnancy labelling and energy (nutritional, calorie) labelling. The first two topics will be the subject of discussion by all State and Australian Governments before year end. These are all important issues for the wine industry, and SAWIA will be strongly advocating on behalf of members.

I attended the Coonawarra Roadshow in Adelaide where a strong attendance of young and older wine lovers explored everything Coonawarra while enjoying some in depth discussions with members.

The Adelaide South Australia Great Wine Capital AGM will be held from 3-9 November 2018.  The program is available here.There are only a few days left to apply for the Best of Wine Tourism Awards, which recognise the innovative and exciting things wine businesses are doing across our state and around the world.

The South Australian Government has announced details of a new Export Grant Program called the South Australia Export Accelerator Grant. This is an important opportunity for new and existing exporters. Funding for this round will close on 21 September 2018, so make sure you refer to the Industry & Government section below for details on how to apply.


 

FEATURE ARTICLES

South Australian Wine industry Snapshot highlights growing optimism

 

The 2018 South Australian Wine Industry Snapshot has been released showing that business confidence is continuing to improve across the South Australian wine sector, a reflection of the increased demand for South Australian wine and the prices being achieved throughout the supply chain.

SAWIA, together with Wine Industry Partner, Bentleys, undertook the second wine industry snapshot aiming to inform business decision making and monitor business performance.

Key findings include:

  • Improving levels of business confidence among wine businesses, with 78% expressing they are somewhat, very or extremely confident about their business prospects
  • Two thirds of respondents indicated a need to improve the profitability of their businesses
  • Free trade agreements are valued by the industry, with 65% of wine businesses recognising their positive impact
  • Energy and labour costs were recognised as having a negative impact by 80% and 69% (respectively) of respondents
  • Staff numbers are expected to remain stable for the year ahead
  • Inventory levels of white and red wine appear to be in balance
  • There is significant potential for wine businesses to better understand obligations and comply with changing legislation.
  • Almost 2,000 hectares are currently flagged for redevelopment, with the primary motivation to improve varietal mix
  • Projected water demand is expected to increase over the coming decade
  • There is significant interest from wine businesses to develop capability in the areas of marketing and business planning.

There was very strong participation in this year’s Snapshot, with most respondents expressing a clear desire to improve business performance and practices. The full report can be downloaded here.

For more information, contact Brian Smedley of SAWIA (8222 9277 or brian@winesa.asn.au) or Louise Vigar of Bentleys (0400 048 050 or louise.vigar@bentleysnetwork.com).


 

Snapshot shows geographic expansion a key strategy for boosting sales

  The August 2018 Wine Industry Snapshot highlighted that 59% of respondents nominated geographic expansion as a key strategy for boosting sales. With business confidence and export sales both growing rapidly, it is important to pause and consider that managing credit risk has been identified as one of the major challenges facing businesses in our industry.


A number of SAWIA members were very fortunate to escape with minimal financial damage from the recent failure of Conviviality Plc, the UK’s largest independent drinks distribution business. This easily could have had very serious consequences for South Australian wine businesses, and it serves as a timely reminder to make sure you protect your hard won sales.

NCI, SAWIA’s long-time Wine Industry Partner, can help you to get ahead of the curve by taking simple but important steps to gather valuable information about potential customers. Alternatively, NCI can help you ensure your profits are protected through trade credit insurance.

NCI, in partnership with SAWIA, is providing the opportunity to gain this advantage through an exclusive offer for SAWIA members only.

           

For more information, visit the Noticeboard of the Members’ Home Page of SAWIA’s website or contact Daniel Harris of NCI on 0448 007 829 or daniel.harris@nci.com.au.


 

New laws for use of labour hire or contractors – Avoid a huge fine or jail

From 1 February 2019, labour hire providers (including vineyard contracting providers, picking and pruning gangs) must be licensed under the South Australian Labour Hire Licensing Act 2017 where they meet the definition of "labour hire services".  Failing to hold a licence when required to do so could expose a provider and their clients to penalties of up to $400,000 and 3 years in jail.

The rules are vague and complicated, and the obligation is not only on the service provider but also on the winery or grape grower. If you use labour hire or contractors you need to understand the rules or you could end up facing serious penalties.

SAWIA will be holding important regional seminars in September and October to help wine industry employers and providers of vineyard contracting services to understand and comply with the new obligations. The following key topics will be covered:
 

  • When is a business required to be licensed? Are there any exemptions?
  • How do you know if a provider is licensed?
  • What do you need to apply and what is the cost?
  • What are the penalties if a provider has failed to register?
  • Who can enter your premises for inspection and auditing?
  • What safety requirements should you have in place when using external contractors?

To register or obtain more information, click here or contact Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

2018 Vintage report shows 8% increase in average purchase price

  The 2018 Australian winegrape crush was 1.79 million tonnes, according to Wine Australia’s National Vintage Report. While above the 10-year average, the crush was 10% below the record 2017 harvest of 1.99 million tonnes.

Lower yields were reported across most regions, as a result of a dry winter, lower cropping after a big crop in 2017, and some seasonal events such as hailstorms and heatwaves. Warm regions were less affected than the cool/temperate regions, being down by 5% overall, while the cool/temperate regions were down 20% overall.

The average purchase price for winegrapes increased by 8% to $609 per tonne, the highest level since 2008. The average price for reds increased overall by 11%, while whites increased by 5%.


Australia’s most produced variety, Shiraz, accounted for 429,000 tonnes nationally, with Chardonnay second at 408,000 tonnes and Cabernet Sauvignon third at 249,000 tonnes. These three varieties combined to make up 61% of the crush and 67% of Australia’s wine exports in 2017–18.


 

SA Wine Grape Crush Survey shows slight reduction

The South Australian Wine Grape Crush Survey has been released, revealing a range of important information including:

 
  • The South Australian 2018 vintage was down 13% from last year, although it remained just above the 10-year average
  • Most regions reported decreased tonnage, with Wrattonbully and Padthaway particularly impacted due to frost
  • Average purchase value per tonne rose 4% to $710 per tonne
  • Hectares planted to vines showed a very slight reduction
  • There was a very small reduction in wine grape grower landholders.


The full report of state-wide and region-by-region information is available here.


 

International Student Australian Wine Showcase 2018

  More than 150 international university students studying in Adelaide enjoyed a taste of South Australia at the South Australian Wine Showcase 2018 held at the National Wine Centre on 15 August.

The eighth annual Australian Wine Showcase was a collaborative event, with Study Adelaide, SAWIA’s National Wine Education and Training Centre and the National Wine Centre of Australia working together to introduce the students to an impressive range of South Australian wine and familiarise students with many of South Australia’s wine regions.


The free event was a chance for students to discover some of the classic wine styles as well as alternative varieties such as Fiano, Tempranillo and Montepulciano.

The international students who attended this year’s South Australian Wine Showcase were from 30 different countries including some of Australia’s largest wine export markets. The students really enjoyed themselves, adding another experience to share with their family and friends back home.

Special thanks to the wineries that attended and shared their wine and time with the students. If you would like to be involved in next year’s showcase, please contact Claire Wald on 8222 9271 or claire@winesa.asn.au.


 

SAWIA welcomes Rehnu Page

  SAWIA is delighted to welcome Rehnu Page, the newest member of SAWIA’s team, as our new Executive Administrator. Rehnu will be the first point of contact for many of your phone calls and email enquiries, while playing an important role in supporting the other members of SAWIA’s team.

Rehnu has extensive experience working in areas such as finance and administration across a range of industries including technology, government and small business. While new to the wine industry, Rehnu is a passionate fan of South Australian wine (particularly Riesling and Cabernet Sauvignon).


Rehnu looks forward to meeting members and helping our industry to thrive. She can be contacted on 8222 9277 or rehnu@winesa.asn.au.

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INDUSTRY & GOVERNMENT

New South Australian Export Accelerator Grants

The South Australian Government has announced new South Australian Export Accelerator Grants, which replace the now closed Export Partnership Program (EPP) that provided some $5M to South Australian Exporters over the last 3.5 years.

The new grants offer funding support to South Australian businesses at various stages depending on where they are on their export journey:
 

 

  • Emerging Exporter grants up to $5k are available to South Australian businesses that are exporting for the first time
  • Export Accelerator grants up to $30k are available to help fund business expansion that will create multiple direct ongoing jobs
  • New Market Entry grants up to $15k are available for mature export companies that have exhausted their grant funding but are looking to enter new export markets ($15k per new export market).

Funding for this round will close on 21 September 2018. To apply or obtain more information, click here or contact the State Government Export Program Administrator on 8303 2400 or saea@sa.gov.au.


 

Landscape South Australia Act / Planning reforms / Mineral Resources Bill

The South Australian Government is proposing to repeal the Natural Resource Management Act and replace it with the Landscape South Australia Act. In addition, the State Government has released further planning reforms for consultation regarding how future developments will be assessed, approved and monitored.

SAWIA attended a recent consultation session and will be making a submission by mid-October. If members would like to provide input to SAWIA’s submission, please contact Mark Gishen on 8222 9278 or mark@winesa.asn.au.

In the meantime, the State Government’s Mineral Resources Bill is also progressing through the Parliament. SAWIA will continue to keep a watchful eye on this matter, particularly with regard to potential impacts on the wine industry.

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EMPLOYEE RELATIONS / WORK HEALTH & SAFETY

Have your say – Migration to South Australia

A new inquiry by the South Australian Parliament's Economic and Finance Committee is examining how to attract skilled migrants to South Australia, while assessing the programs that are currently in place and considering future opportunities to support population growth.

Access to labour, both during peak operational periods and ongoing, is a key issue for the South Australian wine industry. As a result, SAWIA will be making a submission on behalf of members. We need your input including:

  • Difficulties accessing suitable labour from the local labour market
  • The extent to which visa holders are engaged in your company and any learnings
  • Experiences with the Department of Home Affairs (formerly Immigration and Border Protection)
  • Contribution to the local economy and impact on local communities from the work performed by visa holders
  • Practical measures that could be implemented to attract and retain skilled migrants with particular regard to regional workforce shortages.

For more information, a Notice to Members is available from the Noticeboard of the Employee and Industrial Relations page of SAWIA’s website.

Please provide your feedback by 14 September 2018 to Henrik Wallgren on henrik@winesa.asn.au or 8222 9270.


 

New entitlement to unpaid Family and Domestic Violence Leave

A new entitlement to unpaid Family and Domestic Violence leave has been introduced in all Modern Awards, including the Wine Industry Award 2010.
 
Details were circulated to members on 13 August, and a copy is available from the Noticeboard of the Employee & Industrial Relations page of SAWIA’s website.

SAWIA members can access updated copies of the Wine Industry Award 2010 and other relevant Modern Awards here.

If you would like any assistance with updating your leave policies or contracts of employment in relation to this change, please contact Sarah Hills on 8222 9212 or sarah@winesa.asn.au.


 

Important Case – Casual employee entitled to annual leave

A recent judgement by the Full Federal Court has held that a labour hire employee engaged and paid as a casual employee was in fact a permanent employee entitled to annual leave. The Court held that a number of factors demonstrated that the employment was not casual and therefore the employee was entitled to annual leave.

SAWIA is currently reviewing the judgement and assessing how it may affect casual employment in the wine industry.

A Notice to Members will be distributed to SAWIA members shortly. In the interim, for more information SAWIA members can contact Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

SAWIA’s 2018 WHS Seminar to tackle key safety issues

Put the dates in your diary for SAWIA’s annual Work Health & Safety Seminar:

·        Wednesday 7 November – McLaren Vale
·        Wednesday 21 November – Barossa.

This year’s seminar will address a range of pertinent topics including contractor management, managing recreational drugs in the workplace, mental health and wellbeing, and managing safety in the supply chain.

Further details, including booking information, will be available in the near future. In the interim, for more information, contact Zvonko Levak on 8222 9273 or zvonko@winesa.asn.au.

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SALES MARKETING & PROMOTION

South Australian wine to star at Royal Adelaide Show

  Now in its 15th year, SAWIA’s National Wine Education & Training Centre is once again collaborating with the Royal Horticultural Society to present the Cellar Door Experience – one of the most popular attractions in the Foodland Taste SA pavilion at the Royal Adelaide Show.

Over ten days, wine educators conduct five wine appreciation sessions per day of 20-minutes each, with some sessions also featuring offerings of cheese and smallgoods.


The atmosphere is informal, interactive and welcoming for both the novice and the more experienced consumer wanting to explore new tastes and styles. It continues to be an opportunity for wine drinkers to gain confidence and be more adventurous with their wine selections while learning about South Australia’s wine regions.

Despite some inclement weather, interest in the Cellar Door Experience has remained strong with almost all sessions full to capacity over the first few days. Feedback on the wines discussed and tasted, and the experience as a whole, has been fantastic so far with many people finding a new favourite drop.

A big thank you goes to all the South Australian wineries who kindly donated over 540 bottles of wine to help make this event possible.

Come and visit us when you are at the Show! For more information contact Claire Wald on 8222 9271 or claire@winesa.asn.au.


 

Growing Wine Exports / Growing Wine Tourism – New courses part of $50m package

  Two new skills development programs are being launched to help drive success in wine exporting and wine tourism, with the support of the Australian Government’s $50 million Export and Regional Wine Support Package.


Growing Wine Exports provides practical, hands-on working sessions and workshops for new and existing wine exporters looking to select, enter and/or build export markets. The working sessions, which commence in wine regions from 2 October 2018, are designed to evaluate export prospects and build an effective export plan.

Growing Wine Tourism, which commences late October 2018, is for people wanting to take a more strategic approach to developing and delivering their wine tourism products and services, including understanding the visitor economy and their international readiness.

To register or obtain more information, click here.  


 

Best of Wine Tourism Awards

  Enter now for the Best of Wine Tourism Awards, part of the Great Wine Capitals of the World initiative. Categories include accommodation, architecture and landscape, art and culture, innovative wine tourism experience, sustainable wine tourism practices, wine tourism restaurant and wine tourism services.


Applications close 7 September.


 

Impact Conference

The upcoming Wine Industry Impact Conference will gather wine producers, marketers, salespeople and their suppliers together at a one-day conference on 18 October in Adelaide to focus on the burgeoning importance of the Direct-to-Consumer (DTC) sales channel in Australia.

The conference features international keynote speaker Sandra Hess who will discuss world’s best practice strategies and techniques in maximising visitation, customer conversion, retention and engagement. The program will also deliver new and must-know benchmark-data from Wine Australia’s inaugural Cellar door & direct to consumer wine sales report.

To register or obtain more information click here.


 

Visitor economy reaching record heights

  South Australia’s appeal as a tourism destination continues to grow with the latest Tourism Research Australia numbers showing the state’s visitor economy is worth a record $6.7 billion.

The latest International Visitor Survey (IVS) results show international expenditure is up 10% at a record $1.2 billion.

 

Tour Down Under race dates

  For the first time in the 20-year history of the race, the 2019 Santos Tour Down Under will see the Stage 6 finale move out of the city for a regional hill top finish with the McLaren Vale to Willunga Hill stage taking place on 20 January 2019.

The 2019 TDU will be held from 10 – 20 January with the men’s race traversing the following routes:

 

  • Sunday 13 January 2019: People’s Choice Classic: East End Circuit (51 km)
  • Tuesday 15 January 2019: Stage 1: North Adelaide to Port Adelaide (132.4 km)
  • Wednesday 16 January 2019: Stage 2: Norwood to Angaston (149 km)
  • Thursday 17 January 2019: Stage 3: Lobethal to Uraidla (146.2 km)
  • Friday 18 January 2019: Stage 4: Unley to Campbelltown (129.2 km)
  • Saturday 19 January 2019: Stage 5: Glenelg to Strathalbyn (149.5 km)
  • Sunday 20 January 2019: Stage 6: McLaren Vale to Willunga Hill (151.5 km).

Click here for more information.

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SUSTAINABILITY

Biodynamic agriculture course

  A six-day course in biodynamic agriculture, the art of chemical-free soil maintenance and improvement based on nature’s own influence and instruction, is being held in the Adelaide Hills in October.

To register or obtain more information, click here.

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OTHER

Hostplus Superannuation Best in Show

  Hostplus, SAWIA’s Wine Industry Partner and industry superannuation fund for hospitality, tourism, recreation and sport, recently announced a leading interim return of 12.5% for its MySuper (Balanced) fund members, after investment fees and tax, for the 2017-18 financial year.

This return blitzed the median 9.2% return of SuperRatings’ top 50 funds, placing Hostplus as the number one performing MySuper (Balanced) fund in Australia over one, three, five, seven and 15 years (to 30 June 2018).


The average Hostplus member with a $50,000 starting salary and a $50,000 starting balance would have been better off by $66,337 if they had switched from the average retail super fund 15 years ago – according to SuperRatings’ modelling.

On behalf of SAWIA’s members, and all of the happy Hostplus superannuation fund holders, SAWIA congratulates Hostplus on this extraordinarily strong and consistent performance over many years.

If you have any superannuation questions, Hostplus has superannuation experts based full time in South Australia. Hostplus can give you and your staff personalised or group information and advice. To arrange a meeting, contact Scott Vaughan on 0410 621 364 or svaughan@hostplus.com.au.


 

Food Farm Future Conference

  EvokeAG Food Farm Future is being held in Melbourne on 19-20 February 2019, focussing on how technology can and will shape the future of agriculture. EvokeAG is about connecting people who are serious about embracing the practical application of new technologies to solve real world problems.


To register or obtain more information, click here.




Fermentation Seminar

  The focus of the upcoming ASVO Seminar being held in Adelaide on 27 September will be on fermentation technology, management and microbial diversity. The seminar will also include an industry wide discussion on the merits of inoculated vs uninoculated fermentations.


To register or obtain more information, click here.


 

Australian Rural Leadership Program

 

Applications are now open for the Australian Rural Leadership Program, which has been developing stronger leadership within the communities and industries of rural, regional and remote Australia for over 26 years.

The 15-month program includes:

  • Experiential learning – challenging situations in a range of contexts
  • Opportunities to develop the skills to become an intuitive leader who can work in complexity
  • The ability to influence and make an impact in rural, regional and remote Australia.

To apply or obtain more information, click here or email info@rural-leaders.org.au.


 

South Australian farmland values report

  Rural Bank has released the Australian Farmland Values Report  showing that South Australian farmland values increased substantially in 2017. The median value per hectare of South Australian farmland increased by 17.1% in 2017, contributing to a state average annual growth rate of 6.3% since 1998.


The report reveals a year-on-year increase of 16.8% in the total number of farmland transactions completed across South Australia. In total, throughout 2017, an estimated 855 farmland transactions took place across the state in which approximately 324,000 hectares changed hands for close to $812 million.

Farmland values were driven up across all but one region of the state – the Eyre Peninsula – which experienced a 17.3% decline in land values.

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Dates for your diary

2018

 

2019