barossa wine industry fund management plan 2010 - 2014

8/18/2019 Barossa Wine Industry Fund MANAGEMENT PLAN 2010 - 2014

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Barossa Wine Industry Fund

MANAGEMENT PLAN


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The Barossa Wine Industry Vision

“To be recognised at home and abroad as Australia’s most famous wine regionvalued for its long heritage, unique diversity of fine wines, and sustainable viticultural

practices.”

The Mission of Barossa Wine Industry Members

“ To have winemakers and winegrape growers working collaboratively to achieve amore vibrant and highly valued wine industry based upon the production and

marketing of wines of excellence, internationally recognised for exceeding consumerexpectations and derived through practices that are both environmentally and

economically sustainable.”


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TABLE OF CONTENTS

OUR VISION ......................................................................................................................................... 1

OUR MISSION ...................................................................................................................................... 1

OUR VALUES ....................................................................................................................................... 1

1. INTRODUCTION ............................................................................................................................ 31.1 Background ....................................................................................................................... 3 1.2 Funding .............................................................................................................................. 4 1.3 Management Plan Rationale ............................................................................................ 5 1.4 Forward Estimate of Contributions ................................................................................. 6

1.5 Indicative Budget for 2009 ............................................................................................... 7

2. WINE INDUSTRY OVERVIEW ...................................................................................................... 72.1. Australian Winegrape and Wine Industry Summary ..................................................... 7 2.2. The Barossa Grape and Wine Region ........................................................................... 10 2.3. Challenges for the Barossa Wine Industry .................................................................... 12

3. OUTCOMES ................................................................................................................................. 13

4 ORGANISATIONAL CHART 19


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barossa wine indus t ry fund management p lan2010 – 2014

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1. INTRODUCTION1.1 Background

This is the second management plan for the Barossa Wine Industry Fund, building on the draft presented at the November 2007 public meeting. The fundwas established under the Primary Industry Funding Schemes Act 1998 for the benefit of Barossa grape growers and winemakers who are the fundcontributors.

The fund is administered by the Minister for Agriculture, Food & Fisheries and managed through the Barossa Grape & Wine Association. All contributors tothe fund are members of the association.

Section 9 of the Primary Industry Funding Schemes Act requires that the person or body administering such a fund must ensure that management plans for afund are prepared as follows:

The first such plan must cover a 5-year period and be prepared and presented within 12 months after the commencement of the regulations establishingthe fund.

A revised 5-year plan must be presented at least once a year thereafter.

The person or body administering the fund must ensure that industry members are consulted during preparation of a management plan.

The plan sets out five year goals and objectives for the Barossa wine industry with corresponding strategies and actions. The fund limits the use ofcontributions to those objectives, strategies and actions specified.

Once the Barossa Management Plan has been approved by members, a separate operational plan for the forthcoming year will be developed, identifyingspecific projects (which shall be in accordance with the objectives, strategies and actions contained in the management plan) to be undertaken together withrelevant budgets and time-lines.

Arrangements for the management of the fund are set out in the Primary Industry Funding Schemes Act and Regulations and also in the constitution of theBarossa Grape & Wine Association.

Details on funding, the Barossa Grape & Wine Association Board and other fund related matters are outlined in Appendix 1.


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1.2 Funding

The fund consists of contributions payable on Barossa grapes processed by a Barossa winemaker. A Barossa winemaker will be defined as a person whocarries on a business of making wine and who processes Barossa grapes for that purpose.

Rates and basis on wh ich contr ibut ions are to be paid

In the case of Barossa grapes grown by a person other than a Barossa winemaker:

(i) The following amount is payable by the grower of the grapes:$7.00 per tonne in respect of grapes sold in 2010;$7.50 per tonne in respect of grapes sold in 2011;$8.00 per tonne in respect of grapes sold in 2012;$8.50 per tonne in respect of grapes sold in 2013.$TBD per tonne in respect of grapes sold in 2014;

(ii) The following amount is payable by the winemaker:

$6.00 per tonne in respect of grapes purchased in 2010;$6.50 per tonne in respect of grapes purchased in 2011;$7.00 per tonne in respect of grapes purchased in 2012;$7.50 per tonne in respect of grapes purchased in 2013.$TBD per tonne in respect of grapes purchased in 2014;

In the case of grapes grown by a winemaker, the following amount is payable by the winemaker:$6.00 per tonne in respect of grapes processed in 2010;$6.50 per tonne in respect of grapes processed in 2011;$7.00 per tonne in respect of grapes processed in 2012;$7.50 per tonne in respect of grapes processed in 2013.$TBD Per tonne in respect of grapes processed in 2014;


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1.3 Management Plan Rationale

Winegrape production in the Barossa zone has more than doubled over the last ten years and further increases in production are expected. At the sametime, wine production has also increased dramatically and the focus in wine marketing has shifted away from domestic wine sales to wine exports. Thesechanges in production have given rise to new challenges and, in particular, a challenge to overcome a current oversupply of grapes and wine.

In general therefore, planning:

Allows us to manage changes affecting our industry more effectively. Allows us to identify what we want to happen and address anticipated problems. Requires us to define our goals and determine the resources and actions needed to achieve those goals. Forces an analysis of our performance versus the performance of our respective competitors with a view to maximising our abil ity to compete. Fosters an environment of new ideas and research. Helps to generate a range of information that can enable better business decisions and improved performance. Provides benchmarks, against which we can measure, compare and evaluate our performance in the future. Ensures a far more efficient and coordinated use of our resources. Instils greater confidence in the viability of our industry. Contributes to the long term viability and growth of our industry.


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1.4 Forward Estimate of ContributionsThe following table provides estimates of Fund contributions based on information provided by the Barossa Grape and Wine Association.

Barossa Estimated Grape Production and Fund Contributions 2010 – 2014

2010 2011 2012 2013 2014

Tonnes

Fund

$ Tonnes

Fund

$ Tonnes

Fund

$ Tonnes

Fund

$ Tonnes

Fund

$

WINERY Rate $6.00 $6.50 $7.00 $7.50 $7.50

Winery Capped Payments $192K $192K $192K $192K $192K

Winery purchases inc own grapes 35,000 $210K 45,500 $295.75 51,000 $357K 54,000 $405K 54,000 $405K

Total Tonnes 85,000 90,000 95,000 100,000 100,000

GROWER Rates $7.00 $7.50 $8.00 $8.50 $8.50

Other than wineries 65,000 $455K 70,000 $525K 75,000 $600K 80,000 $792K 80,000 $792K

TOTAL FUND

CONTRIBUTIONS $857K $1,012.75 $1,149K $1,389K $1,389K

LESS PIRSA Reserve & Admin $771.3K $911.47 $1,034.1K $1,250.1k $1,250.1k

EXPENDITURE BGWA TOTAL $770K $910K $1M $1.2M $1.2M

Promotion of Barossa Wine region & its wines $385K $455K $500K $600k $600k

Policy development & implementation $192.5K $227.5 $250K $300k $300k

Best Practice grape & Wine Production $192.5K $227.5 $250K $300k $300k


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1.5 Indicative Budget for 2010

At the time of preparing this plan, the indicative allocation of funds raised from the levies in 2010/2011 could be as follows:

Promotion of the Barossa wine region and its wines $385,000

Policy development and implementation $192,500

Best practice grape and wine production $192,500

Total funds $770,000

The actual allocation of funds will depend upon those projects undertaken as specified in the annual operational plan.

2. WINE INDUSTRY OVERVIEW

This section of the Management Plan provides an overview of the Barossa wine industry within the context of the broader Australian wine industry.

2.1 AUSTRALIAN WINEGRAPE AND WINE INDUSTRY SUMMARY

In 2009 the Australian wine industry crush declined by 7% to 1.71 million tonnes. This was below the five year average of 1.79 million tonnes but still higherthan estimated and greater than required to meet current demand.

Against these production figures, the following points give an overview of the current domestic and export wine markets

Australian Domestic Market Aust ralian wine sa les decli ned by over 4% Bottled white wine outsold bottled red wine Fortified and brandy continued a downward trend Soft pack sales declined Imported wine sales experienced strong growth Price pressures continued

Australian Wine Exports Volumes Increased 6% to 750 million litres Price pressures continued with a 10% decline on the back of an average price decline of 15% Bulk shipments dominated UK and US no. 1 and no. 2 by volume with the US moving to number 1 by value.


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The top five destinations for absolute value growth in Australian wine exports were China, Hong Kong, Malaysia, Japan & Finland. Exports of Barossa branded wines - litres shipped declined by 20% and value increased slightly.

Key Issues for the Australian Wine Industry

In July 2006, the Australian Government Department of Agriculture, Fisheries and Forestry and Wine Grape Growers Australia Inc initiated a Taking Stockand Setting Directions Project focussing on winegrape production issues.

The Taking Stock phase of the project was completed in October 2006 and was immediately followed by the Setting Directions phase. As part of the latterphase, a special workshop was conducted in November 2006. The national priority issues from that workshop remain current today:

The development and implementation of marketing strategies that result in wine sales which will support profitable grape growing and winemakingsectors.

Benchmarking all sectors of the wine industry value chain, including grape growing enterprises, against international competitors.

Adopting new grape growing business models for competing in consolidating value chains and achieving enterprise profitability.

Building collaborative relationships through the value chain and improving mutual understanding of respective businesses, costs of production, pricing,profit margins and return on assets.

Achieving appropriate economies of scale and cost reduction in grape production and marketing.

Facilitating major structural adjustment in the wine grape growing industry with appropriate support for growers.

Entrenching a culture of innovation and continuous improvement in wine grape production and marketing.

Maintaining access to, and improving efficiency of, water resources.

Continuing to implement and demonstrate world‟s best practice in natural resource management.

Monitoring and managing industry responses to climate variability and climate change.

Strengthening information collection, analysis and reporting to support grower decision making and industry policies and planning.

Developing effective planning and strategy setting processes for the grape growing sector linked to marketing strategies and sales targets for wine.

Ensuring ongoing investment in the industry‟s human, capital and financial capacity.

Coordinating and building the industry‟s structure at regional, state and national levels; resolving funding and resourcing constraints; and strengtheningpolicy development, change management and relationship management capacity.


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Investing in the development of industry leadership and the future generation.

A separate study, called Directions for the Australian Wine Sector, was undertaken by the Australian Wine and Brandy Corporation and the Winemakers‟Federation of Australia. This study focused on market opportunities for the Australian wine industry and Directions to 2025 was the published result raising

the issues below:

> A structural imbalance between the cost of production and the price opportunity

> Grape and wine supply and demand fluctuations within Australia

> Retail consolidation driving downward pressure on pricing and margin

> Slow domestic growth and a tougher market for export growth

> A resurgent Old World and better resourced New World competitors

> Greater environmental and sustainability challenges and responsibilities, particularly exacerbated by climate change

> Changing social concerns

> Changing demographics and consumer expectations> The fact that wine has become recognised as a fast moving consumer good2025 DIRECTIONS PERSPECTIVE NEW DIRECTIONS TO 2025

A strategic framework was developed to address these issues, focussing on three key areas:

Anticipating the market

1. Understanding and use of global market intelligence

2. Leadership in research and development from vine to consumer

3. Closer alignment between sector organisations to support market development

Influencing the consumer

4. Successful adoption of Wine Australia brand segmentation

5. New expectations for regional and fine wine

6. New consumer and market creation through innovation and communication


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Building sustainable success

7. Partnerships with the government sector

8. Continuous improvement in business skills and practices

9. Continuous improvement in environmental performance10. Emphasis on ensuring widespread social responsibility

Wine Grape Growers Australia, the Australian Wine and Brandy Corporation and the Winemakers Federation of Australia h ave commencedimplementation of their respective strategies to address these national priorities. Other organisations such as the Grape an d Wine Research andDevelopment Corporation refer these national plans and frameworks to guide investment and support strategies for the industry.

In developing this management plan, BGWA has sought to capitalise on pull through opportunities created by aligning, where applicable, localBarossa issues within the national context.

2.2 THE BAROSSA GRAPE AND WINE REGION

For the purpose of the fund, the Barossa is defined as that area of land defined as the „Barossa Zone‟ in the table of Australian Geographical Indications(refer AWBC) comprising the Barossa Valley and Eden Valley regions. The following section of the management plan provides an overview of industrycharacteristics, industry trends and the future for the Barossa wine region.

Barossa wine industry characteristics

The processing operations of several major wine companies are located in the Barossa, making it the major processing hub for the Australian wineindustry. Grapes are delivered to these processing centres from other wine regions (in addition to locally -grown grapes) for processing, packaging anddistribution.

The Barossa is Australia‟s most famous wine region.

First settled in 1840‟s, today many of Barossa‟s vineyards are still owned by fifth and sixth generation vignerons who are pr oud custodians of their old drygrown vineyards and give the Barossa a unique viticultural heritage. Having never experienced Phylloxera, the Barossa today is home to some of the

oldest Shiraz vines in the world that date back to the 1850‟s.

The Barossa is the most recognised destination in South Australia, outside of Adelaide and as a result tourism is a major industry in the Barossa. Thewine region has more than 70 cellar door outlets ranging from small outlets to large multi-purpose entertainment complexes.

In 2009 approximately 60,087 tonnes of Barossa grown grapes were processed in the Barossa with an estimated value of more than $70 million.


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In the 11 year period 1997-2009 Barossa grape production grew 3.5% from 57,983 to 60,087 tonnes. In 2009 this level of production accounted for 10%of total South Australian production and around 4% of total Australian production.

Barossa grown grapes only account for approximately 16% of the total grapes processed in the Barossa (Source: Wine Industry Impact Review, Barossaand Light Regional Development Board).

There are approximately 13,626 hectares of vineyards in the Barossa wine region,

66.5% of these being red grape varieties and 33.5% being white varieties.

Red Grapes - tonnes crushed Shiraz 24,076, Cabernet Sauvignon 7569, Grenache 3726, Merlot 3350 tonnes.

White Grapes - tonnes crushed Riesling 6410, Chardonnay 4976, Semillon 4393, Sauvignon Blanc 1392 tonnes.

The average size of a Barossa vineyard is 17 ha with 57% of vineyards in the Barossa being less than 10ha (Source: Phylloxera Board).

Existing Barossa wineries continue to invest individually and collectively a substantial amount promoting the Barossa wine region and its wines.

Compared to the wine regions in the heavily irrigated areas of Australia‟s River Murray and Griffith NSW, the Barossa is a low yielding region withrelatively high production costs but the quality of grapes it produces is generally higher.

There is a considerable disparity in prices paid for grapes in the Barossa ranging in 2009 from $11,409 a tonne to $300 a tonne (source: Phylloxera andGrape Industry Board of SA).

The cost of grape production in the Barossa prohibits use in wine casks, unless grapes and wines are sold at little or no return to the grower and or thewinery.

The Barossa is Australia‟s most successful regional appellation after the big three generic appellations of SE Aust, South Australia and Australia. Since2001 exports of Barossa wine have grown from 402,000 cases to 1.08M cases and in dollar terms from $39.1M to $109.9M

The top 5 export markets for Barossa wine are the USA, UK, Canada, New Zealand and Switzerland accounting for 67% of total export volume and 72%by value.

Despite its reputation as the premier quality provider of wine grapes, there is an excess supply of major varieties over the preferred intake of wine grapesfrom the Barossa.


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2.3 CHALLENGES FOR THE BAROSSA WINE INDUSTRY

The Future

Little growth in output is expected over the next 5 years.

Growth in sales in both the domestic and export markets at higher than average price points is needed.

Woolworths and Coles now hold an estimated 60% of all retail sales of table wine in Australia. This narrows the trade channel mix for smaller premiumBarossa makers to independent fine wine retail and the restaurant / on trade and also increases the importance of winery mailing lists and internet salesas well as cellar door sales to the smaller premium Barossa labels.

The average retail value of a bottle of white wine sold in Australia is $11.11. Most Barossa winemakers would want to sell their white wines for $15 plus abottle.

Total Australian bottle red sales are estimated at $812M and growing at 5.7% pa. In volume terms this represents around 5.9M cases at an average priceof $11.50 per bottle. Most Barossa winemakers would want to sell their red wines at an average price of $20.00 plus per bottle.

With 60% of Barossa red production Shiraz, the Barossa is heavily reliant upon the future of Shiraz sales.

The Barossa wine industry needs to:

Position itself so as to further build on its reputation and renown

Enhance the unity between:

o Grape growers, winemakers and the community

o Small and large grape growers

o Small and large winemakers

Viticulture

Facilitate winemakers and grape growers working cooperatively to better understand the relationship between grape quality and pricing based onwinemaker‟s end use.

Assist the Barossa grape growing community gain a greater understanding and timeliness from Barossa winemakers as to market signals that will givegrowers confidence to drive quality and implement worlds best practice

Inform, educate and motivate growers to world‟s best practice in dry land farming with the resultant outcome for the Barossa to achieve internationalrecognition.


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Better understanding and prioritising of Barossa viticultural research requirements and to develop relationships with the relative research institutions toundertake these projects as well as seek outside funding support.

More effective communication with the grower community.

Barossa Winemaking

The over-arching challenge for Barossa winemakers is to “ excel” in terms of Barossa wine quality and style and value in Australian and internationalforums and to make more Barossa “Landmark Australia” wines that impress the world.

Climate Change and the Environment

Understand and address the implications of climate change on the Barossa environment, particularly in terms of water demand, availability and use,viticultural management, adaption strategies, varietal mix and the resultant wine styles as well as measurement of grower and winery carbon footprints.

Marketing

Grow awareness, image and sales in all markets by effectively “influencing the influencers”.

Continue the collaborative promotion of BRAND BAROSSA as a world leading wine region

Work with Wine Australia to maximise opportunities for the Barossa as Australia‟s most famous wine region. Establish winning marketing and promotional activities to support the integrity and reputation of BRAND BAROSSA through significant events, recognised

media and market visits.

Create and implement a yearly marketing plan that delivers broad benefits to all members, whilst working within budget limitations, for the Barossa, the Australian market and international markets.

These issues for the Barossa wine industry have been categorised into three key result areas:1. PROMOTION OF THE BAROSSA WINE REGION AND ITS WINES 2. BEST PRACTICE GRAPE AND WINE PRODUCTION 3. POLICY DEVELOPMENT AND IMPLEMENTATION.

To properly address the key issues, a collaborative and organised approach by industry stakeholders is required and such an approach is a key element ofthis plan.

3. OUTCOMES

Outcomes to be achieved over the five-year period 2010/2011 – 20014/15 together with objectives, strategies and actions for achieving those outcomes in thethree key result areas are detailed on the following pages.


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KEY RESULT AREA (1): PROMOTION OF THE BAROSSA WINE REGION AND ITS WINES

OUTCOME: Increasing the market value of wines made from Barossa grown grapes through more effective promotion.

OBJECTIVES STRATEGIES ACTIONS

To increase the profile of theregion as a producer of finewines.

To increase the demand andvalue premium being placedon the region‟s wines.

To increase profitability of wineand wine-grape production.

Pursue strategically targeted promotions of the Barossawine region and its wines.

Grow consumer awareness of the Barossa wine region.

Develop compelling marketing campaigns that promoteBarossa branded wines as a consumer‟s first choice finewine. The consumer demand can translate into increaseddemand for Barossa-grown grapes at prices that are bothprofitable and sustainable.

Ensure the Barossa wine industry has a strong nationaland international presence at major events and showcasethe quality and diversity of our region‟s wines.

Carefully target and grow new markets by building on thegeneric Australian wine awareness strategies of Wine

Australia.

Better engage tourists to the Barossa by improving currentevents and developing new ones that increase cellar doorvisitation by our target consumer markets

Continuously promote the Barossa wine region as thepreferred supplier of grapes for fine wine.

Implementation of the BGWA 3 year Marketing Plan andcontinue to develop & refine year 4 & 5 strategies.

Clearly define the Barossa story.

Develop BGWA sales tools that can be integrated intoindividual winery point of sale materials for a clear andconsistent Barossa message to our target audiences.

Develop and make available to all members collateral with

updated images, quick facts, full presentations & links tosources of Barossa and Australian technical informationthat can be customised to individual requirements.

Bring key wine & lifestyle media, on & off premise trade tothe Barossa for targeted events to highlight the Barossa‟shistory, diversity and ability to produce relevant wines fortoday‟s consumers.

Inspire these key influencers to return to their homes asBarossa ambassadors helping to promote and sell ourregion and its wines.

Refine marketing strategies in existing key internationalmarkets to grow the depth of knowledge and interest ofexisting consumers and develop greater reach withinthose markets.


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OBJECTIVES STRATEGIES ACTIONS

Provide access to information and the opportunity foractive participation in the ongoing development of theBarossa grape and wine industry.

Facilitate improved communication between all growersand all winemakers in respect of matters that areimportant for the promotion of Barossa grapes, wines andthe collective Barossa wine industry.

Actively seek funding from external sources to assist inthe implementation of the key objectives.

Promote the diversity of the region and encourage thedevelopment of all local wineries (large, medium andsmall).

Generate key sponsorship partnerships with leading Australian organisations to improve the quality andfinances of all events BGWA sponsors and/or manages

Identify key emerging international markets and determinetheir potential for profitable sales of Barossa wine.

Devise an education program for targeted emergingmarkets that clearly positions the Barossa andencourages trade to seek out Barossa wines.

Participate in Wine Australia‟s emerging market programsthat fit the Barossa‟s priorities and targets.

Improve the awareness of the Barossa‟s bank of old vinesthrough a register of our historic vineyards and promotionof the Barossa Old Vine Charter.

Continue education on the ability of Barossa wines toimprove and evolve with age by showcasing aged winesat suitable events and functions.

Continue to invest in www.barossa.com website toremain a dynamic Barossa portal for target audiences andmembers in conjunction with Tourism Barossa

Ongoing annual calendar of events including promotionsand associated activities that becomes part of forwardplanning for key stakeholders, customers and consumers.

Communicate with stakeholders efficiently and contribute

articles for a regular newsletter.

Support and undertake appropriate ongoing market andconsumer research as a basis for developing future winemarketing strategies.


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KEY RESULT AREA (2): BEST PRACTICE GRAPE AND WINE PRODUCTION OUTCOME: To facilitate uptake of innovation and technology in vineyards and wineries to ensure profitable enterprises and sound

ecological practices.

OBJECTIVE STRATEGIES ACTIONSTo enable Barossa growers andwinemakers to adopt world‟s bestpractice in their operations. Ensuringtheir economic and environmentalsustainability.

Promote „grape quality‟ to growers through vineimprovement, research and best viticulturalpractice

Deliver improved “Barossa Best Practice”education and training opportunities for growers.

Continue to foster the exchange of viticulturalknowledge and expertise and the undertaking ofresearch activities through collaboration ofefforts by both corporate and independent wine-

grape growers.

Encourage innovation and new technologyadoption as a driver of continuous improvement

Embed environmental sustainability within allaspects of the Barossa wine industry‟soperations

Develop and implement communicationchannels that effectively engage members ininformation exchange and facilitate theresolution of their problems and concerns

Provide access to information and theopportunity for active participation in theongoing development of the Barossa grape andwine industry.

Set Barossa regional benchmarks for land management &grape growing, ensuring consideration is given to our microclimates.

Provide information and encourage investments in up-gradingpractices in line with benchmarking results

Through industry consultation, determine Barossa‟s ongoingresearch and development priorities

Engage youth in grape & wine related activities and provide

ongoing leadership opportunities via young grower andwinemaker function and tailored leadership program/course.

Actively seek funding from external sources to accelerateimplementation of strategies and actions

Identify and promote appropriate education and trainingcourses to growers. Facilitate participation and feedbackthrough field days, workshops, forums and seminars.

Identify, promote and facilitate adoption of „best‟ soil, water,plant, pest and disease and business management practices.

Develop a framework for extension & adoption services.

Identify communication needs and tools for dissemination.Prepare, implement and evaluate a communications strategy.


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OBJECTIVE STRATEGIES ACTIONS

Facilitate improved communications between allgrowers and all winemakers in respect ofmatters that are important for the conduct of

their businesses.

Maintain and support the technical activities of winegrapegrowers and winemakers committees in the Barossa region.

Promote the heritage of the Barossa region‟s o ld vines whichare viticulturally unique.

Work collaboratively and maintain effective communicationswith other research bodies and existing and new networks.

Foster a collaborative approach with other organisations toaddress issues that impact upon not only the region‟swinegrape growers and/or winemakers but also other groupselsewhere.

Negotiate arrangements and fees to other regional/state &National organisations for services to Barossa memberswhere appropriate.

Encourage members to visit the BGWA offices wherewinegrape growers and/or winemakers can go to obtaininformation, raise their concerns or have their questionsanswered.


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KEY RESULT AREA (3): POLICY DEVELOPMENT AND IMPLEMENTATION OUTCOME: Securing the long term Barossa viticulture and winemaking business environment for future generations.

OBJECTIVE STRATEGIES ACTIONSTo ensure the Barossa wineindustry is positioned toproactively manage, protect andadvance the interests of Barossawinegrape growers andwinemakers.

To be vigilant and pro-active in theprotection of the integrity of theBarossa region and its wines.

Maintain close relationships with other groups in the Barossa thatshare similar goals.

Be proactive in addressing and facilitating resolution of industryissues.

Establish links with other groups at state and national levels thatshare our goal of a profitable and sustainable grape and wineindustry.

Ensure equitable determination of policy and demonstrate a unitedindustry approach to local, state and federal governments inrespect of agreed policy decisions, including the improvement ofinfrastructure and the maintenance of our local heritage.

Investigate and implement feasible ways to improve the profitabilityof grape and wine production.

Develop and implement communication channels that effectivelyengage stakeholders, encourage two-way information exchangeand facilitate the resolution of the stakeholder issues, bothindividually and collectively.

Develop and implement effective communication strategies andsystems that make members aware of BGWA actions, how tobenefit and how to be involved.

Facilitate improved communications between all growers and allwinemakers in respect of matters that are important for the conduct

of their businesses.

Encourage stakeholder participation and develop linkages withindustry stakeholders and service providers to consult on policydevelopment and implementation.

Formalise a system and policy framework for prioritising andmanaging Barossa industry issues.

Prepare a position paper and lobbying strategy for each of theagreed regional policy areas.

Keep a watching brief on legislation and policies that may impacton the Barossa Wine Industry and contribute to Regional Impact Assessments.

Investigate collective arrangements for sourcing production inputs

to attain economies of scale.

Develop accurate and timely supply & demand reports to facilitateprediction of required tonnages of grapes by variety & by pricepoint.

Foster a collaborative approach with other organisations to addressissues that impact upon, not only the region‟s winegrape growersand/or winemakers, but also other groups elsewhere.

Communicate with stakeholders regularly and contribute articles fora regular newsletter to stakeholders.

Members only area on www.barossa.com to facilitate information

dissemination. To provide a single site where industry specificreports and updates can be obtained.

Facilitate BGWA membership adoption of the Australia WineIndustry code of conduct.


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Appendix 1 - Proposed Organisational Arrangements and Indicative Budget introduction

The following information is intended to provide a broad outline of how the Barossa Wine Industry Fund is to be administered. The precise arrangements formpart of the Constitution of the Barossa Grape & Wine Association. In addition, the actual budget for 2010/2011 will be included in the operational plan to be

determined following endorsement of the Barossa Wine Industry Fund Management Plan.

Industry members will be continually consulted in relation to these matters.

4. Organisational Chart

The following chart provides an outline of the organisational structure.

Grape Grower

Contributions $$$

Barossa

Viticulture

Technical

Group

Winemaker

Contributions $$$

Grower/Winemaker

Contributions $$$

Barossa Wine

Industry Fund

Wine Barossa

Committee

Grape Barossa

Committee

Barossa Grape &

Wine Association

Eden Valley

Winegrape

Growers Group

Barossa

Gourmet

Committee

Barossa Wine

Show

Committee

Small

Winemakers

Committee

Cellar Door

Managers

Committee

Vintage Festival

Committee


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5. Barossa Wine Industry Fund

Under the terms of the Primary Industry Funding Schemes Act 1998, levies are payable to the Barossa Wine Industry Fund. Levies are collected and the fundis administered by Primary Industries and Resources S.A. on behalf of the Minister. Distributions from the fund are made to the Barossa Grape and Wine

Association following the receipt of applications for funding by the Minister.

Varying the contr ibut ion rate

The Minister has the power to set the rates of contribution in any year at the rates applicable in the previous year by a notice in the Gazette subject to adviceof the Board of Management of the Barossa Grape & Wine Association and subsequent to the preparation of the management plan for the relevant year.

How the contr ibut ions are to be paid

Contributions payable by a grower of Barossa grapes are paid on behalf of the grower by a winemaker out of the amount payable by the winemaker to thegrower of the grapes. Barossa winemakers pay the levy directly.

Time per iod for payment of contr ibut ions

Contributions are collected by winemakers from the 30 June payment to growers and are payable by winemakers on behalf of growers into the fund by 31July each year. Contributions by winemakers in respect of their own grape production and for processing of grapes are payable into the fund by 30September each year.

Expendi ture of contr ibut ions

The Minister is empowered to make payments out of the fund to a body representing both Barossa winegrape growers and winemakers for promoting theBarossa wine industy and other permitted uses that will be specified in the regulations (Barossa Grape & Wine Association). The permitted uses will bedescribed in the Barossa Wine Industry Management Plan applicable at the time that the expenditure is incurred.

Refund of contr ibut ions

A grower of Barossa grapes is entitled to claim a refund in respect of contributions paid by a winemaker on behalf of the grower. A Barossa winemaker isentitled to claim a refund in respect of contributions paid on the winemaker‟s own behalf. A person claiming a refund is not entitled to receive direct benefits orservices funded from payments from the fund for a period of two years after the refund is claimed.

Fund investment

Prudential management of the Fund will be carried out by Primary Industries and Resources SA (PIRSA) on behalf of the Minister for Agriculture, Food andFisheries, as Administrator of the fund.


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barossa wine industry fund management plan 2010 - 2014

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