South Australia pledges support for winemakers

South Australia pledges support for winemakers

Mon, September 21, 2026 at 5:41 PM GMT+3 2 min read

The state government in South Australia has said it will put up more than A$100m (US$71.3m) to support the local wine industry as it battles oversupply and pressure on sales.

Officials have outlined a package they say is worth A$109m to help South Australia's wine industry.

In a statement, South Australia's state government said the money would assist the industry "to transition, expand market demand, promote new regional investment and position the state's wine sector for sustainable long-term growth".

In July, national trade body Wine Australia said the country's total wine export volumes had dropped to their lowest level in 22 years amid the global decline in wine consumption.

Figures from Wine Australia showed export volumes fell 6% to 598 million litres in the year to June.

It marked the first time since 2004 that annual export volumes have slipped below 600 million litres, the report said.

South Australia's government said the state produces 80% of Australia's "premium" wine and is "contending with global oversupply, declining grape prices, shifting consumer demands and ongoing market pressures".

Officials plan to set up a A$100m loan scheme to help growers who wish to use their unviable vineyards for "more sustainable and higher-value land uses".

Eligible growers will be able to access loans of up to A$500,000, with no principal or interest repayments required for the first two years of the loan.

South Australia is also putting up A$5m to extend a export promotional programme launched in 2025 for two more years.

A new wine industry coordinator will also be appointed to "identify and address barriers to an orderly transition and strengthen engagement between industry, government and regional stakeholders", the state government said.

South Australia state Premier Peter Malinauskas said: "Right now, the industry across the world is grappling with global oversupply and declining grape prices. It's facing significant challenges and we are acting to safeguard its future.

"We don't pretend that our comprehensive A$109m wine industry package will fix everything but it will help support transition, expand market demand and promote new regional investment – positioning our wine sector for sustainable long-term growth."

"South Australia pledges support for winemakers" was originally created and published by Just Drinks, a GlobalData owned brand.