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2017/18 Annual Report WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2017-18 __________________________________________________________________________________ 2017/18 ANNUAL REPORT WINE INDUSTRY ASSOCIATION OF WA (INC.) 30 October 2018 1 | P a g e WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2014/15 __________________________________________________________________________________ ________ Contents Introduction 3 2017/18 Strategic Priorities 4 President’s Report 5 Treasurer’s Report 7 Chief Executive Officer’s Report 8 Membership and APC Collection 11 Report Technical Report 13 Board of Directors 16 Wines of WA 2017/18 APC Budget 17 Financial Report 18 Appendices Wines of WA Tax Working Group – Terms of Reference 2017 State Vineyard and Production Data 2017 - 22 WA Wine Industry RD&E Strategic Priorities Plan Page | 2 WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2017-18 __________________________________________________________________________________ Introduction Wines of WA Charter WA producers have mandated that Wines of The Wine Industry Association of Western WA should, “provide stewardship of the Australia (Inc.) (Wines of Western industry” to create opportunities for producers Australia), established in 1987, is the and the fine wine regions of WA. state’s primary organisation of wine producers. From an operational point of view, this service is provided through: It is our mission to provide a unified, strategically influential voice that creates • Advocacy to ensure government, at all opportunities for the fine wine regions of levels, understands our industry – the Western Australia. benefits we provide to the state economy, particularly in regional WA and the assistance and resourcing we Industry Overview require to further develop our industry. • Representation to ensure the value of Wine is a major value adding industry with industry is clearly understood by significant regional economic and employment government, the community and other benefits. In 2016/17 the total value of the WA complimentary industry sectors. We wine industry was estimated at $684 million need to ensure our social license to with a grape value of $65 million. Regarding operate is retained and strengthened. market channels, 48% of total value was sold in We need to build strong partnerships WA, 40% in eastern Australia and 12% in with tourism, agriculture and fisheries by exports. developing complimentary market The Western Australian wine industry produces development programs. We need to about 42 million litres of wine annually raise the stature of our industry so that representing just 3% of the volume of West Australians are truly proud of their Australia’s wine production but 8.5% of the wine industry. value. • Administration of technical and WA Wine Industry Vision marketing program funding to provide Regional Associations and producers As outlined in the WA Wine Industry Strategic access to opportunities to improve Plan 2014 – 24, WA producers have a shared business practises and market access. vision of: • Communication to ensure wine “a Western Australian wine industry that grows industry participants are aware of the sustainably and profitably, built on the issues that affect their businesses, reputation of its great fine wine regions” enabling them to make informed decisions on the direction of the industry The pathway to this vision is a unified and and their individual businesses. strategical influential industry focused on regional fine wines of provenance and We look forward to working with Producers and authenticity. Producers and Regional Regional Associations in 2018 - 19 on Associations are the custodians of their developing a sustainable and profitable future Regional brand. for the WA wine industry. Page | 3 WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2017-18 __________________________________________________________________________________ Strategic Priorities 2017 - 18 Priority Priority Issues Activities and Progress 1. Secure Implement APC funding model in Assist Regional Associations to implement Funding 2017-18 Financial Year APC funding model Model for WA wine industry Assist producers in complying with APC funding model Continue engagement with DPIRD, JETSI, Secure funding and resources for Wine Australia and Regional Associations to export and domestic market obtain funding and resources export and development domestic market development and wine tourism support 2. Market Development Deeper engagement with Tourism WA to Support wine tourism initiatives and direct sales channels. ensure “Taste 2020” potential is realised. Support Busselton airport development and advocate for supporting infrastructure across south west Smoke taint Chemical resistance Improved Technical Committee to implement 3. RDE & clonal material (including programs to address identified challenges Adoption alternative varieties) through the Wine Australia Regional support for Program fine wine Business model innovation business WoWA to advocate for policy settings and model Pest and disease management government support to address identified challenges Sustainable viticulture Continue to work with producers and RAs to Ensure taxation regime offers best refine position on wine tax. Support WFA operational environment for WA and Australian Vignerons where appropriate 4. Taxation and fine wine producers. and in line with WA producers. Regulation Ensure legislation offers best Advocate for further amendments to Liquor operational environment for WA Control Act to improve access to market, in fine wine producers. particular, direct to consumer channels 4 | P a g e WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2017-18 __________________________________________________________________________________ Federal Government Export and President’s Report Regional Wine Support Package (ERWSP) Tax In 2017-18 the federal government announced the guidelines for competitive and state grants In the last twelve months, WoWA has continued under the International Wine Tourism Grant to develop a tax policy position that can be scheme (IWTG) which is a component of the supported by all WA producers. While ERWSP. WA was eligible for a $1 million state significant positive change to WET legislation grant. Regional wine associations and was affected in 2016, there is no doubt we need stakeholder partners were able to apply for to be proactive about actively advocating for a competitive grants of up to $250,000. Both simpler and fairer structure into the future. required cash co-contribution at least equal to the grant amount. Additionally, a detailed To this end, the Board commissioned a Tax submission outlining proposed activities to Working Group to review a range of alternative implemented via grant funding was required. models for taxation of wine and the TWG has WoWA submitted a grant application and was met several times over the course of the year. It successful in securing a $1million grant and has become apparent that the solution is matching co-funding from a variety of stake- complicated, however, it has also become holder partners including DPIRD, TWA and obvious that forces beyond the wine industry regional wine associations (refer to the one- and federal Treasury are exerting influence in page strategic plan for the program in the this space. We must, as an industry, be appendices). Margaret River and the Swan proactive to ensure that alcohol tax policy Valley were both successful with their focused on a narrow set of outcomes is not respective applications, securing $250,000 and imposed on wine producers. The TWG will matched. continue to work with industry in 2018-19 to ensure all viewpoints are considered in The legacy of capacity and capability in wine developing a position that the whole WA tourism across all regions created under these industry can support. grant programs will be significant. The next 2 years will be both busy and exciting. Wine and Health Smoke Taint Aligned to taxation is the issue of alcohol related harm and government policy to manage WoWA continued to work with state this. While this is largely a national issue, in government agencies including DBCA and 2017-18, many state government DFES to implement a late season prescribed representatives pursued policies aimed at burns program that would have minimal impact reducing alcohol related harm. The intent is on grape-growers. Regional Associations also unquestioned however, unintended worked closely with DBCA/DFES regional consequences of proposed measures must be managers and local government authorities to clearly understood before policy and legislation ensure prescribed burning programs were is implemented. WoWA will continue to work implemented as effectively as possible while with Winemakers’ Federation of Australia to minimising smoke-taint risk. advocate a consistent policy position on this issue. 5 | P a g e WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2017-18 __________________________________________________________________________________ Organisational Reform The two national grape and wine representative bodies, Australian Vignerons and Winemakers Federation of Australia initiated discussions on how to form one truly representative national body. As at 30 June 2017, this processed had progressed significantly. It is likely that, at the respective AGMs of each, resolutions will be tabled to begin the process of achieving this. Export Development and Wine Tourism We continue to develop an industry business case that will be presented to our state government when ratified by WoWA and Regional Associations. It
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