text 2007 annual report - parliament.nsw.gov.au · the elected members of the board have a three...

A N N U A L R E P O R T 2 0 0 7

WINE GRAPES

MARKETING BOARD For the City of Griffith and Local

Government Areas of Leeton, Carrathool and Murrumbidgee

WINE GRAPES MARKETING BOARD Annual Report for 2007

Wine Grapes Marketing Board Offices Location: Riverina Winegrape Growers Centre Residential: 182 Yambil Street GRIFFITH Postal: PO Box 385 GRIFFITH NSW 2680 Telephone: 02 6962 3944 Facsimile: 02 6962 6103 Email: [email protected] Website: www.wgmb.net.au Board Executive Members Chairman Bruno Brombal Mobile: 0429 630 465 Deputy Chairman Robert Bellato Mobile: 0408 477 210 Staff Members Chief Executive Officer Brian Simpson Mobile: 0438 388 828 Email: [email protected] Industry Development Officer Jason Cappello Mobile: 0428 635 340 Email: [email protected] Trainee Technical Assistant John-Ross Wood Email : [email protected] Office Manager Gillian Conway Email: [email protected] Annual General Meeting Thursday June 26 2008 Yoogali Catholic Club NSW Commencing at 8pm

Page(s)

1 Acronyms and Abbreviations used 2 Letter to the Minister 3 Chief Executive Officer’s Report for 2007

Statutory Compliance 3 Board Staff Changes 3 Application for Extension of Time 3 Agricultural Industry Services of the Board 4 Aims & Objectives 4 Management and Structure 4 Board Members during 2007 4 Meetings of the Board 4 Board Members Attendance 4 Board Staff 4 Customer Access 4 Ethnic Affairs Priority Statement 4 Summary of Operations

4-6 Operations and Activities Brief for 2007 6 Funds Granted to Non-Govt Comm. Orgs 6 Legal Change 6 Economic or Other Factors 6 Management & Activities 6 Research & Development 6 Human Resources 7 Consultants 7 Equal Employment Opportunity 7 Disability Plans 7 Land Disposal 7 Promotion 7 Consumer Response 7 Guarantee of Service 7 Payment of Accounts 7 Time for Payment of Accounts 7 Risk Management & Insurance Activities 7 Disclosure of Controlled Entities 7 NSW Government Action Plan for Women 7 Occupational Health and Safety 7 Waste 7 Numbers of Executive Officers 8 Freedom of Information Act 8 Electronic Service Delivery 8 Appointed Auditors 8 Annual Reports 8 Legal Matters 8 Financial Year 8 Conclusion

2007 Year in Review 8-9 Chairman’s Report for 2007 9 Regional Association Reports

9-12 Research & Development Report 12-16 Minutes of the Previous Annual General Meeting

16 NSW Wine Industry Association 17 MIA Vine Improvement Report

Financial Reporting and Information 18-19 Statement by the NSW Audit Office

20 Statement by Members of the Board 21-38 Audited Financial Report

Wine Grapes Marketing Board 2008 Budget 39 2008 Consolidated WGMB Budget 40 Notes to the 2008 Consolidated Budget

RIVERINA - WINE GRAPES MARKETING BOARD 1 ANNUAL REPORT FOR 2007

ACRONYMS AND ABBREVIATIONS USED IN THIS REPORT

ABARE Australian Bureau of Agricultural Research Economics ASVO Australian Society of Viticulture and Oenology AWITC Australian Wine Industry Technical Conference CEO Chief Executive Officer EEO Equal Employment Opportunity HACCP Hazards Analysis of Critical Control Points HS High Security (Water Entitlement) IDO Industry Development Officer LBAM Light Brown Apple Moth MIA Murrumbidgee Irrigation Area MIAVIS Murrumbidgee Irrigation Area Vine Improvement Society ML Megalitre (measure of water quantity) MLC Member of the Legislative Council NSW New South Wales NSW DPI New South Wales Department of Primary Industries NSWWIA New South Wales Wine Industry Association NWGIC National Wine & Grape Industry Centre R&D Research and Development TSSD Taking Stock and Setting Directions WGGA Wine Grape Growers’ Australia WGMB Wine Grapes Marketing Board VFD Vineyard Field Day VITT Viticulture information technology transfer


Chief Executives’ Report - Brian Simpson Welcome again the Board’s annual report of its operations. On behalf of the Board I encourage all constituted growers to take the time and read through the reports in this document. This report contains a draft copy of the minutes of the AGM that was held in 2007 for your information prior to the next AGM to be held in June 2008. In 2007 the tonnes harvested in this region declined significantly. This was a result of early season frosts and the general dryer growing conditions. The 2007 national tonnes was greatly debated by industry bodies as many believe that it would wipe out all of the surplus stock that existed in the market. This has not actually been the case with some varietal wines, notably Chardonnay remaining in a surplus stock position. The 2008 harvest was expected to be again lighter than the 2007 vintage, however with rains and increased irrigation allocations across much of the inland region the tonnes appear to be available. Growers while receiving a lift in prices and some strong contracting activity prior to the harvest will likely not be as well positioned in the following season 2009. In 2007 the Board introduced its new Strategic Operations Plan 2008 - 2012. This is in line with the NSW Government’s requirements under the Agricultural Industry Services Act that bodies such as the Board must provide a revised 5 year Strategic Operations plan annually. Copies of this plan were sent to all growers in November and digital versions are also available via the Board’s website. During the year the Board underwent a review of its legislation that allows it to set and enforce terms and conditions of payment. This was completed by December 2007 and the Board still retains the power to enforce payments to growers that do not have a complying contract (by definition of the Act). Parts of the Wine Grapes Marketing Board (Reconstitution) Act 2003 were repealed to reflect these changes. One of the most important changes to the legislation was the removal of the wineries requirement to provide to the Board a copy of their price list prior to it being effective. It was felt that this compliance burden on wineries did little to assist growers and provide a transparent market as many wineries were not providing factual price lists to the Board. Wineries are still required to provide prices on their dockets at the weighbridge or at a minimum provide sufficient information so that the seller can determine the price that they will receive as a minimum. The Government has advised that the Board power to enforce payment terms will be reviewed regularly.

Statutory Compliance The following information is provided to comply with the reporting procedure and prescribed content of the NSW Government Annual Reports (Statutory Bodies) Act. Board Staff Changes During 2007 there were no changes to the permanent staff at the Board office. Application for Extension of Time The Wine Grapes Marketing Board did not apply for an extension in the time allowed to produce and publish its Annual Report for 2007. It was envisaged that the report would be completed within the statutory timeframe. Agricultural Industry Services of the Board The Board functions under the Wine Grapes Marketing Board (Reconstitution) Act 2003. Under this legislation the Board has the following agricultural industry services: (a) the development of a code of conduct for contract

negotiations between wine grape growers and wineries,

(b) the development of draft contract provisions with respect to the sale of MIA wine grapes to wineries, including provisions with respect to:

(i) The prices to be paid by wineries, and (ii) The terms and conditions of payment to be

observed by wineries, in relation to MIA wine grapes delivered to them by wine grape growers,

(c) the promotion of private contracts for sales of MIA wine grapes to wineries by wine grape growers,

(d) the collection and dissemination of market and industry information, including the production and publication of indicator prices for MIA wine grapes grown in the Board’s area of operations,

(e) the conduct of research and development into plant health in relation to wine grapes,

(f) the provision of education and training in relation to wine grape production and marketing,

(g) the promotion (in association with organisations representing wineries) of wine made from MIA wine grapes,

(h) the promotion of region industry, including regional winemaking, within the Board’s area of operations,

(i) the representation of the wine grape industry in relation to the matters referred to in paragraphs (a) – (h).

The above services were not impacted by the Review undertaken during the 2007 year. The strategic operations plan of the Board is developed in line with these services.


Aims and Objectives The following have been established and are consistent with the industry services of the Board: • ensure a system of orderly and stable payments; • improve the long-term viability of vineyards; • improve the quality and marketability of Riverina

winegrapes; • provide a resource for industry information and data; • increase awareness of the Riverina as a major

producer of quality wine; • improve the professional and technical skills of

winegrape growers; • improve communication and cooperation with

wineries; and • encourage and facilitate viticulture research. Management & Structure The Board consists of seven members, five of whom are elected by winegrape growers and two appointed by the Board. The elected members of the Board have a three year term that ceases February 2010. The appointed members terms cease February 2008. Board Members during 2007 • Bruno Brombal (Chairman - Executive) • Robert Bellato (Deputy Chair - Executive) • Lou Dal Nevo • Len Gullotta (served until term ended January) • Pascal Guertin (commenced term in February) • Tony Baggio • Eric Berton (appointed by the Board in 2005) • Rodney Zuccatto (appointed by the Board in 2005) Meetings of the Board During the 12 months to 31 December 2007 there were 12 general meetings, 2 Public Meetings and 2 Special Meetings held. The Board holds general meetings the second Monday of each month. Public Meetings held in 2007 were the Annual General Meeting and the Strategic Planning and Budget setting meeting. Special meetings of the Board are held on a needs basis and are in relation to specific issues that arise from time to time. Board Member Meeting Attendance The following table shows the number of Board meetings held that were available for Board members to attend. Attendance of general and special meetings are noted and the overall percentage attendance of each member. Members’ absences were due to leave, sickness or other personal work commitments.

Meeting Type Meeting Number

Public 2

General 12

Special 2

%

Bruno Brombal 1 10 2 81% Robert Bellato 2 11 2 94% Lou Dal Nevo 2 12 1 94% Tony Baggio 2 10 2 88% Eric Berton 2 12 2 100% Rodney Zuccato 2 11 1 88%

Commenced duties Feb. 2007 missed 1 General & 2 Public Pascal Guertin 0 10 2 80%

Finished duties in Jan. 2007 missed 1 gen. meeting Len Gullotta 0 0%

Board Staff From 1 Jan 2007 - 31 Dec 2007 staff members were: • Chief Executive Officer - Brian Simpson • Industry Development Officer – Jason Cappello • Office Manager – Gillian Conway Customer Access The office is located at 182 Yambil Street Griffith. The Board office is open 5 days per week 8:30am-5:00pm Monday – Friday (excluding public holidays and the Christmas and New Year period). Ethnic Affairs Priorities Statement Located in the ethnically diverse Riverina region of NSW, the Board represents fairly and equally the interests of all winegrape growers irrespective of their country of origin. Board members and staff are sensitive to the cultural, social and religious differences of people of varying backgrounds. All constituted growers within the area of the Board’s jurisdiction have the opportunity to contribute to the administration of the Board and the policies by which it functions. They are encouraged to vote at Board elections and meetings as a means of registering their opinion of Board performance, and question decisions and policies. All views are assessed for their constructiveness without bias to race. The Board is committed to the principles of multiculturalism and will continue its strategies as outlined in the above paragraphs. Summary of Operations The following summary of operations provides a brief of the activities conducted and meetings attended by the Board in 2007. Operations and Activities Brief for 2007 The Board again conducted laboratory analysis for the growers of the region. In 2007 the laboratory conducted 1,200 colour samples for growers which included work


undertaken for an external funding partner. The return to the Board of this work covered the costs of undertaking the sampling for constituents. The Board also proposed varying payment terms to wineries, proposing that grapes that received a low price should be paid for in full earlier than higher priced grapes. Wineries rejected the proposal. Water delivery issues involved the Board liaising regularly with Murrumbidgee Irrigation to ensure that water would be available to all winegrape producers in the MIA. The Board worked actively with several growers in discussions with wineries, undertaking mediation in one instance over a potential legal dispute. The Board hosted a visiting delegation of Austrian winegrape producers in the region. Providing them with a tour of the region and insight into the regions issues and the role that the Board undertakes for grape growers. The Board was consulted by Griffith City Council over the development of a ornamental vineyard development at the Griffith Airport. Due to concerns over the image and liability of maintenance the Board declined involvement in this proposal. Since its withdrawal from participation, vines have been planted (ornamental) and will be maintained by regional wineries and the council. Sponsorship of the Riverina Field Days was an exciting new venture for the Board that has received a negative response from growers in the Leeton region despite the fact that the Field Day is for all Riverina grape growers and is centrally located for all constituents of the Board. The Board liaised with the ABARE to confront the issue of variability in the winegrape statistics for this region. It is believed that with many new growers entering the industry these plantings are not being captured by ABARE. ABARE plays an integral analysis role within the wine industry and accurate data is essential for the performance of their forecasting of production information. During 2007 the Board representatives attended all Wine Grape Growers’ Australia meetings, held in various locales, namely Adelaide, Melbourne and Canberra. The progress and management of the federally funded Taking Stock and Setting Directions project, the finalisation of the Wine Industry Code of Conduct and the development of a South Australia levy structure took up most of the activities of the peak growers body. It is still in its infancy and the Board remains a member of its executive committee in the formative stages. Funding of this body will need to be carefully considered to ensure that its activities fit squarely with the aims and objectives of grape producers of the Riverina.

In May the ASVO held a workshop for growers of the region titled “Drought Response Workshop” at the Griffith Regional Theatre. The issue of water use and the limited allocations at the time were of critical concern for many growers in the region. In the MIA having high security water is a bonus to producers as was felt in 2007 when allocations were higher than those in other grape producing regions on the Murray River system. Growers on average held sufficient water for vines and many were able to trade excess allocation down the system at returns of trade that had not been seen previously. Also in May the WGGA held two workshops in the region, one in Leeton that was attended by 10 producers and one in Griffith, attended by 30. These were to present outcomes and to seek directions on the Taking Stock and Setting Directions (TSSD) project that had been conducted. The TSSD has enabled the WGGA to set its direction and focus for the nations grape producers. Much is this work will continue to deliver results and generate invaluable information for growers. During the year the Board conducted and funded the continued HACCP auditing that occurs each year as part of the second party auditing of the system. While most of these activities have been undertaken using a consultant to the Board it has been decided that the Board will commence this process using in house staff in coming years, principally as a way to add value to the process of meeting with growers in a one on one setting. The CEO presented to share analysts in Sydney of the price pressures being faced by the producers in the Riverina. This was the third time Board staff had been invited to present the views of growers at an ABN Amro coordinated function. Following on for this representatives travelled to the region to meet with wineries and the Board. The Board participated in the 10th Anniversary celebrations of the NWGIC held in Wagga Wagga. This was timed to coincide with annual extension planning day and the symposium that is held for industry. It would be of value for growers that are interested in attending participate in this event as it highlights the most current research outcomes of the Winegrowing Futures Program being conducted by researchers principally based in Wagga Wagga. The Board worked closely with the MIA Vine Improvement Society, offering support and assistance toward the development of its business plan. As the industry plantings has declined so have returns to bodies such as MIAVIS. As a region it is important that these bodies are well resourced to ensure that quality planting material is available for the security of the industry.


In July 2007 the Board initiated contact with the NSW Department of Primary Industries to undertake a review of the Board with the aim to retain its ability to set and enforce terms and conditions of payment for producers that were not subject to a complying contract. The review was conducted and completed in 2007 with the new legislation coming into force in January 2008. While the Board still retains the ability to set and enforce payment terms the legislation no longer requires that wineries are to provide pricing lists to the Board prior to their implementation. The Board were very active in terms of Occupational Health and Safety issues for growers during the year. A workshop was held in conjunction with NSW WorkCover and all growers that attended were provided with an easy to use manual for their own on-farm use. The Federal Governments Young Farmers Forum was held in Griffith with representatives from the Board participating in the functions that were held across the region. The Industry Development Officer attended the Australian Wine Industry Technical Conference held in Adelaide and then participated in a Environmental Management Systems Quality Assurance Conference held in Hobart. Much time was taken up in the activities of the Board staff through one on one discussion with growers that contacted or physically called into the office to discuss their individual concerns with wineries or to discuss their on farm viticultural issues. Such opportunities provide the Board with direct feedback into its activities and services as well as providing the valued services to grower constituents. Water and grape pricing issues dictated the direction of the Board in the later half of 2007. The industry requirement for access to water and better information in relation to grape prices well prior to harvest has led the agenda for the Board. Funds Granted to Non-Government Community Organisations $500 was donated to the Charity Work undertaken by Westend Estate to support seriously ill children “Country Hope”. A photocopier was donated to the Rural Financial Counselling Service NSW – Southern Region Griffith and Leeton Districts. The cost of this was shared equally between the Board and Riverina Citrus. The value of this donation to the Board was $2,363.64 Legal Change The Wine Grapes Marketing Board operates under the Wine Grapes Marketing Board (Reconstitution) Act

2003. This Act was amended in 2007 with these amendments not making any legal impact on the Board. Economic or Other Factors There were no significant economic factors that impacted on or affected the achievement of operational objectives of the Wine Grapes Marketing Board. Management & Activities A review of the strategic operations of the Board was conducted by the Board during 2007. This was presented to growers in the WGMB Strategic Operations Plan 2008-2012 and Operating Budget for 2008 publication. The plan was adopted at a meeting of growers held in December 2007 at which time the rate for the Board’s grower fees and charges were set ($3.90 per tonne fresh weight). A performance review of all permanent staff was undertaken by Executive members of the Board in December as per the conditions of their contracts. Research & Development The Board continued to operate its own laboratory facilities during the year for growers and received external funding for research work undertaken for a third party. Winegrape maturity sampling for grape growers continued with casual staff being employed to assist in sampling growers samples. For the 2008 (current) Vintage, 5 casual staff members were employed for this process. The Board again obtained external funding to undertake trial work. In 2008 the laboratory tested over 2,000 samples. Human Resources During 2007 the Board employed 3 permanent staff, 4 casual staff members. Staff titles:

1 x Chief Executive Officer (CEO) 1 x Industry Development Officer (IDO) 1 x Office Manager (OM) 4 x Casual Staff (laboratory)

There was a -2% variation in wages and salaries from the 2006 position. Standard personnel policies and practices are in place with all positions being contracted or subject to signed offers and conditions of employment. Permanent staff performance is reviewed annually by the Board Executive members. The Board remained without a TO for the entire 2007 financial year. At end of 2007 this position was advertised with the Board failing to fill the position until the start of 2008.


Consultants Three (3) consultants were engaged in 2007 costing a total of $15,288 ($28,061 in 2006) (excluding GST). • Kanwhen (second party auditing of regional HACCP

system) $6,257 • Management Resource Plus (HACCP system review

and management) $ 971 • McGrath-Kerr Business Consultants (collation and

preparation of Utilisation & Pricing Survey for the Riverina region) $8,000

Equal Employment Opportunity The Board did not set any planned outcomes for the previous year in relation to EEO. The Board is mindful of and does follow EEO principles when advertising, interviewing and selecting staff. (Jan-Dec) Total Permanent staff: 3 Percent Women: 33% Percent Men: 67% (Jan-Dec) Total Casual staff: 4 Percent Women: 75% Percent Men: 25% Disability Plans The Wine Grapes Marketing Board is not required per NSW Public Sector Management Act Sch.1-3 to instigate a disability plan. Land Disposal No disposal of property or land occurred within the 2007 Financial Year. A revaluation of the property and land occurred in November 2007 as per NSW Audit Office agents request. Another revaluation will occur in three years for the purposes of financial reporting. Promotion The Board contributed to the following promotional activities: • Sponsored the Riverina Wine Show event by funding

the trophy for best Semillon wine $1,000 • Tourism Touchscreens $ 968 • Wine Display at Griffith Aerodrome and Leeton

Visitors Centre Wine. • Distribution of the Riverina Promotional DVD. Consumer Response No formal complaints were received from members or the general public in relation to Board activities. Guarantee of Service The Wine Grapes Marketing Board has no formal guarantee of service provisions in place. The Board internal policy is that staff must return all grower and

public contact at earliest convenience, with priority given to constituted growers. Payment of Accounts The details of financial performance for the each quarter are shown in the following table, it does not include payments to employees, returns to growers, Board members, superannuation funds and the Australian Taxation Office. The Board aims to make 100% of payments to creditors within 30 days of account receipt.

Number of Days

1st quarter

2nd quarter

3rd quarter

4th quarter

0-30 days $110,276 $124.536 $88,486 $66,242 30-60 days - - - - 60-90 days - - - - 90+ days - - - - $ Total $110,276 $124.536 $88,486 $66,242

% target 100% 100% 100% 100% % actual 100% 100% 100% 100%

Time for Payment of Accounts All accounts were paid for within the timeframes requested by suppliers. Risk Management & Insurance Activities The Board is currently insured for members and staff liability and professional indemnity. All assets are insured to their replacement value. The Board’s internal policy on purchasing is for all asset purchases to be recorded on the assets register. Disclosure of Controlled Entities The Wine Grapes Marketing Board does not have any controlled entities. NSW Government Action Plan for Women The Wine Grapes Marketing Board is not affected by the Action Plan. Occupational Health & Safety No reports of work-related injuries or illnesses were received during the year. The Board was also not advised of any proceedings against it under the Occupational Health and Safety Act 2000. During 2007 the Board did involve itself in OH&S matters on behalf of growers and held a workshop for growers in conjunction with NSW WorkCover. Waste The Wine Grapes Marketing Board has not moved to implement a written waste reduction policy. All paper that contains information of a non-confidential nature is recycled within the office and then disposed. All confidential material is securely shredded. Numbers of Executive Officers The Board currently has one Chief Executive Officer and the position is not receiving a remuneration package greater than or equal to Senior Executive Service level.


Freedom of Information Act The Board received 23 requests (31 in 2006) for information under the provisions of the Freedom of Information legislation. These related directly to growers own farm details held by the Board. No charges or fees were requested for FOI requests and these were generally completed within 24 hours of receipt of the application. Electronic Service Delivery Wine Grapes Marketing Board internet site www.wgmb.net.au continues to host Board newsletters and information updates for growers. The Board also uses facsimile, and email to deliver weather and pest reports to growers during the growing season. Information on meetings are sent via SMS to growers willing to receive these. Appointed Auditors The NSW Audit Office appointed Johnsons MME from Albury as its agent for the 2007 Audit. Annual Reports The Board produced 500 copies of this Annual Report to enable it to be sent to all constituents and to comply with statutory requirements. Annual reports cost $5.43 per unit (inc. GST), these were printed locally. Legal Matters The Board’s solicitor is Mr Phillip Alvaro of Griffith NSW. There are no legal matters pending with the Board. During 2007 there was one breach of the Wine Grapes Marketing Board (Terms and Conditions of Payment) Order 2007 by Warburn Estate. The winery was directed to make it final payments to growers via the Board offices to ensure that the payment was made in the correct timeframes. Financial Year 1st January to 31st December. This coincides with the collection of the statutory fees and charges. Conclusion On behalf of the Board staff that work for the growers of the region I would like to thank all the growers that have taken the time to call into the office and provide your views into the management and operations of the Board.

2007 YEAR IN REVIEW Chairman’s Report - Bruno Brombal The Board has had a constructive year representing the growers of the region and continuing to service the interests of growers. While water and grape prices remained high of the agenda for growers I am pleased that the Board actions in 2007 and now in 2008 have been positive with grape

prices responding to the market conditions of lower national yields. I would like to welcome to the Board Pascal Guertin from Bilbul whom commenced duties with the Board in February 2007. Pascal has been a very active member of the Yenda Grape Growers Association and is also now the President of this organisation. The Board undertook a review of its enabling legislation and its strategic plan. While pressure is going to continue on the industry to reduce the amount of legislation that protects growers it is worthwhile to note that the NSW Government still has had the foresight to allow the Board to operate in the area of terms and conditions of payment. The Board know that each year payments are missed by one or two wineries and these actions while an unfortunate issue for the growers concerned cannot be tolerated. The flow on effects to the regional economy of growers not being able to make their payments on time is an important part of why the Board must act to retain its power in this area. Contract activity in the region was stronger in 2007 than it has ever been in past years. Winery contracting was fuelled principally by strong local competition (more wineries in the market). A supplementary factor was the concerns that the available water was limited in this region and more constrained in the other major producing regions within Australia. The industry was looking at a forecast production in the vicinity of 50% of what was required to meet current market demand for wine. As we have seen however this season (2008) is that the tonnes have been available. In 2007 a low 218,000 tonnes of winegrapes were produced, a big drop off from the 290,000 tonnes grown in 2006. The region now has slightly greater than 20,000 hectares of winegrape bearing and another 2,000 hectares growing their first and second crops. If the region was to produce an average yield of 17 tonnes per hectare (7 tonnes per acre) this region with the area of 20,000 hectares could be producing 340,000 tonnes and greater. While the region is still expanding as new growers enter the industry or existing ones see benefits of continued growth we need to look to attract more buyers into the region to continue to generate competition and options for growers to consider when marketing their produce. In other regions growers sell their grapes into this region by the thousands of tonnes each season. The Riverina continues to look internally to local buyers perhaps it should be trying to look externally. Freight on these sales would be reduced as transport companies are already returning with empty loads. The Board has worked hard this year with the federal growers body Wine Grapes Growers Australia to


develop a Code of Conduct for the industry and this will only assist growers if wineries sign onto it. Apart from the Code of Conduct there are other options that growers may look to consider. Selling groups, similar to those in other regions could be formed or collective negotiations could become standard practice under streamlined provisions provided for by the ACCC. There are examples of these available to review and the Board will look to present these options to growers as a means of securing their business futures within the industry. Finally I would like to thank on behalf of the Board Len Gullotta of Leeton whom served the industry for many years and the staff of the Board for their continued work a dedication on behalf of growers. It is at times a thankless task but one that is worthwhile and can be rewarding if acknowledged. I would also like to thank all those growers that made the effort to attend the workshops and meetings held by the Board over the past 12 months. I should also mention the growers that contacted myself, other members of the Board and the staff to communicate their issues directly to them. Growers should be advised that your views are important and these are discussed at the general meetings held by the Board. The Board is 100% growers and does understand the issues confronting all growers and with your comments, concerns and advice we are better prepared to try and resolve some of the problem issues confronting producers. Regional Grape Grower Associations The following grape grower associations’ function in the region. More information can be obtained from the Board or via direct contact with their representatives.

Hanwood Grape Growers’ Association Postal Address PO Box 321 HANWOOD NSW 2680 Contact Details Chairman Lance Hicken 6963 0418 Meetings are held at the Hanwood Catholic Club at varying times through each year.

Yenda Grape Growers’ Association Postal Address PO Box 350 YENDA NSW 2680 Contact Details Chairman Pascal Guertin 0427 635 343 Meetings are held at the Yenda Diggers Club and notices of meetings are placed at the club.

Research and Development Report Report by Industry Development Officer Jason Cappello The Research and Development, Extension activities in 2007 covered many projects by the R&D staff to assist growers with their vineyard operations. NSW DPI recruited a district viticulturist for the region with Julian Connellan appointed and was a huge benefit to local growers and the Boards activities also. Julian has recently resigned, returning to his home in Mildura, we thank Julian for his service and work during his time with the local industry and his support to the industry will be missed. The R&D program includes extension projects and research projects. The extension projects involve developing and communicating information from research and company projects in a manner for growers to easily interpret and utilise. Research projects are generally more at the data collection level. The following report outlines WGMB projects in each area. ASVO 13th Australian Wine Industry Technical Conference (AWITC) The 13th AWITC was held in August 2007 at the Adelaide Convention Centre. The IDO attended to find out the latest information on technology and research updates from the conference. The event involved a 3 day conference seminar covering 54 presentations on viticulture and wine making topics from both 16 international and 36 local speakers, 57 hand on and interactive workshops, 285 poster displays, from research institutes across the world & the WineTech trade show with exhibition showcasing products for the wine and grape industry from across the world. Some highlights of the conference included the need for Australian wine products and producers to become more innovative to meet changing consumer expectation of Australian wine which appears to have become boring and lost individual character and story, which Australians tell well about a product. All countries across the globe are becoming constrained with climate change particularly available water. In Europe many countries receive less then 400mm of rain per year which is changing the way vineyards are managed and maintained. Infrastructure for water in Europe (i.e. dams & water distribution networks) is not as available as in countries like Australia which will make it difficult for some vineyards to survive if dry conditions continue through climate change. On display in the WineTech area were many vineyard related products including harvesting, pruning, mowing & spraying equipment, chemical products and vineyard management software. The standout product was a 3

WineTech


row Chris Grow manufactured vineyard slasher, as shown in the image below.

ASVO Drought Response Workshop – Managing the impact of the ‘big dry’ on your vineyard On the 8th of May 2007 the ASVO in conjunction with WGMB and NSW DPI held a workshop on drought management topics for the coming season. With a host of speakers from leading researchers to on the ground growers together at the regional theatre, they came to inform growers. The workshop provided growers with options for managing vines through the drought and forthcoming season which at the time was looking to be the worst on record due to the lowest inflows during 2006/07 in our water storage system and the Murray Darling Basin. 250 growers attend the event and several local wineries helped support growers to attend by funding the entry cost. The event would not have been possible with the organisation from the ASVO, support of Julian Connellan at NSW DPI and the Board coordinating and promoting the event to growers. AWIS Program 2007 Vintage Riverina Report The 2006/07 season involved growers to complete the AWIS program survey about on farm practises in relation to natural resource and environmental management. Overall 90% of the vineyard hectares in the Riverina where captured and provided good baseline data and some indicators which will help continue improvement and understanding of natural resource and environmental management importance amongst local growers. Some key highlights included irrigation type response showed a split of almost 50% drip irrigation and 50% surface irrigation usage, 80% of growers are protecting against soil erosion, chemical user accreditation accounted for 94% of the growers, and 92% of the growers monitored for pests and diseases and nutrition on their property. Further work is needed on biodiversity management in the Riverina, improved use of documented property

management plans and soil moisture monitoring use on farm. The report outcomes were well publicised in the media and information used as a showcase to other regions in the Australian Wine industry. Grower Representation Grower representation by the research and development staff has continued to be a strong focus this year. Representation includes committees such as the WGMB HACCP Team, NSWWIA R&D Committee all the way up to the Agrochemical Industry Advisory Committee. Other avenues are more direct focusing on straight liaison with wineries or local authorities. LBAM Grower Monitoring Program The Board together with the NWGIC viticulture entomologist (Dr Andrew Loch) have run for growers a monitoring program to help increase awareness and understanding of the damaging affects caused by LBAM. During 2006 & 2007 under dry conditions this pest which can cause large losses of fruit due to secondary problems such as botrytis was less active across the district but as soon as conditions were moist and ideal moths returned and damaging larvae were noticed in bunches. The key periods for monitoring and potential control are known to be during the growing season in late October, early November and late December. It is critical to know if large moth flights have come through the vineyard to ensure applied control products can be effective and target the early stages of larvae development before entering the shelter of the grape bunch. To do so monitoring can achieve this. In the 2008/09 season growers can be involved in the monitoring program to benefit themselves and the wider grower body to help limit the impact of this pest across the region. LBAM monitoring kits are available at the Board office and will continue to be provided to growers that are willing to participate in this research. Natural Disaster Assessments and Assistance The 2007-08 growing season saw natural disaster issues with hail and wind storm damage spread across the district while impacting on some individuals significantly. Overall the affects of the damage was mostly mitigated by the increase of fruit weight from good rainfalls received. Damage to fruit occurred early enough in the season when berries were hard and did not spread to destroy complete bunches although under wet conditions close to the 2008 harvest some split and damaged berries became infected with rots creating trouble for growers prior to harvest. During December 2007 the region experienced unstable storm activity and this continued into 2008. One individual storm event at the end of 2007 resulted in a large vineyard at Tabbita having several thousand posts


snapped under the weight of a ripening crop. There were many other smaller events across the district with vines and posts damaged and soil erosion due to lack of plant growth after the long dry weather conditions. NSWWIA R&D Committee WGMB along with many key industry representatives from the Riverina and other NSW growing regions meet twice per year to decide on key research priorities for the NSW wine industry. The research priorities cover both viticulture and winemaking items with 13 areas in viticulture currently being investigated through the NWGIC Winegrowing Futures program and many leading industry institutions. Vineyard Field Day – Riverina Field Days Since the 2006 Vineyard Field Day (VFD) the Board moved to sponsor the Riverina Field Day (RFD) event for at least 2 seasons. The site chosen is the same as the 2006 VFD and the Board saw this site ideally situated in the centre of all our serviced growers from Corbie Hill to Hillston.

The RFD was a successful event and will be run on the 9th and 10th of May 2008 with the Wine Grapes Marketing Board major sponsors and again hosting a major marquee filled with exhibitors with links to the viticulture industry to benefit growers needs. All growers are encouraged to support these events and suggest items to encompass at future field day events to benefit growers.

Vineyard GIS Mapping Database The Board updated 181 grower property plans during 2007 with many more worked on and details of plantings edited. With many growers under water entitlement constraints many have installed drip irrigation systems on farm and with the help of WGMB property plans we can send copies on your behalf to your irrigation supplier to ensure the best system design occurs. We are continuing to improve the vineyard hectare planting information and are currently undertaking a satellite update of the region in 2008 in conjunction with Riverina Citrus. From this update the new property plans will then be ground truthed and updated to the latest planting details. This will enable the planting information to be used for crop damage and disaster matters and forecasting of potential crop production in coming vintages. Vintage Grape Analysis Laboratory The Wine Grapes Marketing Board vintage grape analysis laboratory had an overall increase in grapes analysed with over 2000 samples processed in 13 weeks during 2008 compared to 1225 samples over 9 weeks in 2007. The Board undertook analysis for a range of customers; Riverina growers, local wineries, research companies and out-of-area growers. The laboratory continues to run as a free service for constituted growers. This is achieved by a fee-for-service rate charged for any analysis completed for non-levy paying parties. All levy paying growers are welcome to use this service during vintage. Below is a breakdown of the varieties analysed through the vintage lab for 2007 and 2008 vintages. The majority of the Shiraz samples were analysed for a contract trial in 2008.

Laboratory Sample Breakdown Variety 2007 2008 Shiraz 541 1,525 Cabernet 333 178 Semillon 115 16 Merlot 108 168 Chardonnay 63 44 Others 65 150 Total Samples 1,225 2,081

VITT Groups In October 2007 VITT Group grower meetings were held across the district to provide updates to growers in 4 key areas of vineyard management. With water availability still an issue, topics presented provided updates on the seasonal outlook and harvest possibility, a hands on product demonstration of the NSW DPI salt bag kit, product display and presentation on sustainable farming methods from Agrichem and pest report update from

WGMB Marquee exhibitors

Field Day displays


Andrew Loch & Julian Connellan, NSW DPI on vine moth borer which caused problems in vineyards in 2007 and light brown apple moth which continues to cause problems in the district.

The Board greatly appreciates the financial support provided by Suncorp Metway though Ian Laurie as it helps in making the VITT group program possible. The Board plans to continue to run the program in 2008 to provide growers with the latest industry information.

WGMB HACCP for Vineyards Program The WGMB HACCP food safety program which has run since 2002 is a major task provided by the R&D staff at the Board. The simple to use program continues to be utilised by local growers and also meet the needs from all processors for food safety record keeping on farm. Growers needing to implement food safety programs on their vineyards can contact the Board office for further details and training options. WGMB Seasonal Report & Weather Grower information service The 2007 growing season was a difficult one at the start with zero to low water allocations for irrigators and very low rainfall amounts during the winter and spring months the season looked like conditions would be significantly worse for winegrape production in 2008 than the 2006/07 growing season. The weather did change and reasonable rainfall was received during November till January for some parts of the region. Storms also produced hail damage and

disease pressure escalated out of control in some vineyards with ideal conditions allowing powdery mildew to infest some vineyards. The season was very costly for many growers having to purchase temporary and permanent water entitlements to help supplement allocations to produce and maintain a normal crop and also spending dollars on expensive chemicals for the prevention and control of diseases after the rains prior to the 2008 harvest. Overall it was a challenging year and one which made disease control and management for each vineyard manager very significant. The Board’s weather information service provides growers with weekly summaries of the past weather conditions and local forecast information to assist with management decisions in the vineyard related particularly to pest and disease control and irrigation management. This service is available to all constituted growers and the information is sent out during the season usually weekly via fax and email service. The system also helps the Board provide growers with important notices on events and news coming up in the industry. Please advise the Board of your email or fax number (even if we already have these in our office) if you are not receiving the weather reports.

PLEASE TAKE THE TIME TO READ THE MINUTES BELOW OF THE PREVIOUS ANNUAL GENERAL

MEETING OF THE BOARD.

Riverina - Wine Grapes Marketing Board 2006 Annual General Meeting

Minutes of the Meeting held 27th June 2007 commencing at 8:06 PM

Yoogali Catholic Club, Yoogali NSW 2680

1. Present Eligible Growers: Altin, Bruno; Altin Sergio; Armanini, Armando; Baggio, Anthony; Battistel, Frank; Baveresco, Tim; Bellato, Robert; Berton, Eric; Bisetto, John; Bugno, Gary; Calabro, Tony; Cappello, Maurice; Carter, Neil; Cremasco, Lou; Cristofaro, Tony; D’Aquino, Joe; Dal Broi, John J; Dal Nevo, Louis; Davidson, Edwards, Luke, Gary; Farranato, John; Favero, Daniel; Foggiato, Brian; Foggiato, Fortunato; Forner, Livio; Galluzzo, Tony; Hicken, Lance; Hoare, Roger; Hutchinson, Karen; Mallamace, R; Martimbianco, Claude; Mazzon, Bruno; Menegon, Dennis; Monteleone, Vince; Morris, Glenn; Morrison, Paul; Panazzolo, Rudolph; Pastro , Raymond; Pellizzer, Lorenzo; Pilosio, Willy; Previtera, Geatano; Raccanello, Joe; Raccanello,

VITT group attendees, NSW DPI,, Hanwood

VITT group attendees, Yenda Hotel,


Louis; Raccanello, Peter; Rossetto, David; Sartor, Angelo; Strano, John; Toscan, Giulio; Violi, Dennis; Violi, Domenic; Vitucci, Raymond, Vitucci, Anthony; Vitucci, Don, Vitucci, John; Wood, Jorge; Wynn, Adam; Zahra, Raymond; Zappala, Vince; Zuccato, Rodney. Board Staff: Brian Simpson (CEO), Jason Cappello (IDO), Gillian Conway (OM) Invited Guests: Ron Hutton (Deputy Director NWGIC), Don Hayman (NSWDPI), Brett Tucker (Executive Director MI); Suzanne Davidson (Rural Financial Counsellor); Derek Everson (NSW Dept Water and Energy); Mr Ben Thomas (Scholefield & Robinson); Bill Calabria (President RWA), Stuart McGrath-Kerr (EO RWA), Peter Morrish (EO Riverina Citrus), Julian Connellan (NSWDPI). Members of the Public: David Deane (DeBortoli Wines), Jeremy Cass (DeBortoli Wines), Evan Christen, John Hornbuckle, Jeff Dance (McWilliams Wines), Peter Scholefield, David Mead (DeBortoli Wines), Nicholas Car (CSRIO), Lou Sartor, Sean Hamper (Beelgara Estate), Chris Molineaux (Casella Management), Mark Bonetti. Apologies: Bruno Brombal (overseas leave), Pascal Guertin, The Hon. Ian Macdonald MLC, Kay Hull MP, Adrian Piccoli MP, The Hon. Tony Catanzariti MLC, Dick Thompson (Chair MI), Murray Smith (ED of Coleambally Irrigation), David Harris (Dept W&E), Len Gullotta, Sam Ciccia, Michael Ciccia, George Nardi, Giles Butler (Regional Director NSWDPI), Peter Vitucci, Cedric Hoare, Ernie Tropeano, Leo Ippoliti.

2. Minutes of previous Annual General Meeting That the minutes be accepted as a true and accurate record of 20 June 2007 meeting - MOVED: Roger Hoare SECONDED: John Dal Broi CARRIED

3. Business Arising from the Minutes No business was raised from the previous minutes.

4. Chairman’s Report – Robert Bellato (Deputy Chair) The final tonnage figures provided to the Board for this vintage was 218,294 slightly less than the 220,000 tonnes reported in the media. This is a 70,000 tonnes decrease from the previous year. Overall production declined by 25%, 15% in whites

and 35% in red varieties. This was in line with national trends of declining production. This vintage the Board was very active talking with wineries about the prices being offered to growers. These discussions led to a number of price increases at wineries and reviewing of contracts within the regions. The Board understands that while many growers sought a higher price for their wine grapes the decline in yields did little to compensate the slight lift in prices paid per tonne across the region. The Board would also like to remind growers that as large volumes of wine grapes had been contracted very early in the season for low prices these did impact on the price offers received across the Board. The perceived increase in production for the region did not eventuate and this led to better demand. Again the Board wishes to advise growers to carefully consider any offers as we enter the forthcoming season, with water availability being a very critical issue to be considered perhaps the first offer will always not be the best offer that you as growers could possibly receive. I would also encourage wineries to be more open with their growers and communicate more frequently and openly. For it is as an industry together we stand to gain a lot. I firmly believe that this region has good potential to become one of Australia’s leading regions within the industry but we must abandon the distrust and any threat of abusive market power and come together. This year the Board is calling for a continuation of its enabling legislation. The Board is also going to investigate the development of a voluntary levy system for growers that wish to be direct members of the federal growers body, Wine Grape Growers Australia. To assist growers financially accommodate payment into this organisation the Board will be proposing a reduction in its charges per tonne on growers. The Chair asked that his report be accepted. That the Chairman’s report be accepted - MOVED: Tony Cristofaro SECONDED: Danny Favero CARRIED

5. General Business 5.1 Financial Reports – Brian Simpson CEO The CEO provided growers with an overview of the financial position of the Board at the end of December 2006 as presented in the Annual Report 2006. Both revenue and expenditure were down


from the previous year ($60,000 and $33,389 respectively). Profit also declined from the previous year but the return of Board fees and charges of $1 per tonne to all growers was still proceeding with approximately $10,000 left to collect by growers. Equity in the Board remains strong with over a million dollars, 40% of this was non-current assets, such a the land, building, equipment and motor vehicles. The CEO asked that the growers accept the Financial Report as presented in the Annual Report That the Financial Report for 2006 be accepted - MOVED: Lou Cremasco SECONDED: Roger Hoare CARRIED 5.2 Budget Amendments to the 2007 financials As the revenue for the Board was to be considerably down from the budgeted position due to a lower than forecasted crop the Board amended its budget for the current year to reflect this and to make minor changes to expenditure for better accuracy and apportionment of expenses across accounts. Revenue was revised down by $178,450 and increases in expenditure were to account for provisions of annual leave and long service leave. Capital expenditure was up by $34,000 to account for the purchase of a motor vehicle that did not occur as planned in 2006. The CEO asked if there were any questions to the budget and the proposed amendments. Roger Hoare: Asked why the Board was cutting back on R&D funding when in 2006 it returned $1 per tonne to growers that could have been spent on R&D? Answer: The Board is considering R&D projects and budgets annually, while in 2006 it returned money to growers it still maintained a surplus at the end of the year. John Strano: The Board was told that the crop was going to be low and wineries were also told, why wasn’t the budget more accurate? Answer: The Board acknowledges that it knew very early that the crops for 2007 would be down but at the time the budget was set in September 2006 it was still not known and the industry in general were talking about a massive surplus and mothballing of vineyards. No further questions the CEO asked that the growers motion to accept the budget amendments. That the Budget Amendments as presented be adopted by the Board -

MOVED: John Strano SECONDED: Glenn Morris CARRIED 5.3 Ben Thomas – Scholefield Robinson Provided a presentation to growers on soil pH research into irrigation practices, some of this research was conducted in the Riverina. The results of the research were the development of a module that growers could use to examine critical points at which growers may need to alter pH in the soil to allow plants to take up nutrients. There will be a number of spreadsheet models that growers will be able to obtain once the final report has been completed and forwarded to the GWRDC. These will allow growers to place there own on farm inputs into the system and it will assist in the management of soils. 5.4 Suzanne Davidson – Regional Rural

Financial Counsellor Sue provided growers with an overview of her background as she was recently appointed to the position and has an extensive background in management and business training. She is currently based out of offices in both Leeton and Griffith. Sue talked about the work that she currently does for free for the rural community and recommended that growers should make an appointment to meet with her to discuss their individual requirements. The current round of Exceptional Circumstances funding ends in November 2007 with another round due to comment in December and go until March 2008, however its application in the Riverina region will depend on drought conditions, therefore it is difficult to predict if it will be extended into this region. Sue advised growers that they are able to obtain special conservation scheme loans to offset any eligible capital works on farm. Applications needed to be completed to obtain these funds. The meeting was advised that much of the information on available funding was available through the web by the portal www.raa.nsw.gov.au and that both the federal and state government were financial supporters of the service. 5.5 Derek Everson – NSW Department of Water

& Energy Derek went through the most current update on the water situation. He advised that he Government was now preparing to provide survival water to permanent plantings that had high security allocations and that the market will be open to allow


general security irrigators with permanent plantings to buy available water for their own use. Inflows into storage systems were shown as still very low but long range forecasts indicate that this position is likely to improve slowly as we get into the season. Currently there is available (across the entire Murrumbidgee valley) approximately 200GL of water for irrigation not including any water flowing into the system. Growers were invited to ask questions on the water situation. Roger Hoare: How conservative with the Government be in looking after Town Water Supplies and the environment and then industry? Answer: Government are not looking at the future allocations currently just working on survival for industry at present. These issues will be viewed in August. Glenn Morris: What does survival water mean, is it for all irrigators with permanent plantings? Answer: There is a preference to look after High Security first as it is why the entitlement is there. Any water in an account will be tradable, so there are market solutions for other irrigators. Lou Cremasco: To get 50% HS water what level will dams need to be at, as irrigators need to make contingency plans in advance? Answer: Cannot work it out straight from current dam heights, need to account for unknown run off from snow and losses and the hydro water releases. Lou Cremasco: What is survival watering and how much per hectare does this mean for irrigators. Answer: It does vary but information obtained from industry and researchers indicate that survival is anywhere between 2.5 and 4ML per hectare across all horticulture/viticulture. John Strano: Why does NSW have survival watering only and South Australia has been advised they will receive a 1% allocation? Answer: It is being treated differently across each state and in NSW we are having allocations for horticulture put above some Towns and Stock and Domestic security. Ray Zahra: What about the option of the Murrumbidgee helping the Murray? Answer: This would occur if high flows occurs, otherwise the system may be separated as much as

possible by reducing flows in anabranches and keep water only in the main channel of the river. Jeff Dance: Is the water flow below the dams being used for the environment, run off etc? Answer: No dam water is for the environment the Government will try and hold and use water for other purposes at this point in time. Bill Calabria: Is cloud seeding go ahead and other proposals such as piping the region? Answer: The piping may come as a result of the federal $10 billion dollar plan, whereas cloud seeding may or may not work to the advantage of the industry. Tony Galluzzo: How much water is needed in the dam for the industry to get 40% allocation? Answer: Hard to calculate at any point in time, will never put an accurate figure on it and prefer to use a forecast probability. Peter Raccanello: Could a political decision change what is being proposed? Answer: This is not likely to change as many of the current decisions are being based on community consultations. 5.6 Brett Tucker – Executive Director –

Murrumbidgee Irrigation Provided growers with a retrospective look at the management of the irrigation supply company for the 2006/07 year. He advised that it was an extremely difficult year for growers and the company learned more about the system and its issues due to the lower flows this year then in any previous year. Communication to the shareholders and the general community saw approximately 58 press releases being sent out in the 12 month period. There has been a major shift in the measurement of dethridge wheels operating at low flow rates and this has caused problems for some growers. It is important that the system works equitably for all users. Explained to growers that under the current proposals survival water to growers is at a higher priority than the payback of HS and GS accounts. This is an important aspect for the region to be aware of. All growers and the Board can assist in the future by helping to coordinate survival requirements and support the tighter system controls that are in place. Growers should support a return to normal


allocations with a reserve policy as soon as is practicable. The MI Board would also like all growers to support a long term program for cloud seeding in the catchments. It has been proven to work in other parts of the world and is likely not to have worked due to the weather patterns in Australia over recent seasons. Brett asked if there were any questions. John Bisetto: Asked about the 5% allocation that was taken off growers and wanted confirmation that this is to be carried over. Answer: This is first time for the industry and follows the system that once water is allocated to an account it cannot be reversed. The industry is also allowed to carry over up to 15% of unused water. John Strano: Heard that 50GL of water was traded out of the region in the last season, if this water was traded would it have stayed in the dam? Answer: Yes it would have been available as part of the general resource set or available to have within existing accounts. Joe Raccanello: Concern that under survival watering drip irrigators have a different timing and used requirement than flood and furrow irrigators, how will it be worked out? Answer: Have not made a determination on how the water will be allocated but advise that the 30,000 ML of HS water that is on rice farms will not get water as they do not have permanent plantings. Glenn Morris: The new measuring system and slow flows are hitting growers really hard with penalties when the systems are really out of the growers control they are MI infrastructure? Answer: MI makes no apology to charge more to growers where these growers are taking slow flows and therefore getting more water. If more water is needed by these growers they can purchase on the market. Most of the systems across the region will be changed over time and to make immediate changes is an extremely costly exercise. Tony Cristofaro: How accurate are Dethridge Wheels? Answer: A well set up wheel is quite accurate but most are not set up to the correct tolerances and therefore are at their worst during slow flow rates through them. Tony Cristofaro: Do hobby blocks impact on the water use in the region?

Answer: Yes these do and the company will monitor these more closely in the future. There is a 7,000ML entitlement these blocks have and currently MI is not sure exactly what they are using whether it is under or over use.

6. Other Business No other business was raised

Being no further business, the meeting was declared closed at 10:07pm.

NSW Wine Industry Association Report by Executive Officer Stuart McGrath-Kerr 2007 has been a testing year for the Association, reflecting the general industry situation. A number of our smaller regions have struggled this year with Hastings River and Tumbarumba down-grading to associate member status. The Association continues to represent the interests of the grape growers and winemakers in NSW. It has maintained strong relationships with the National Wine and Grape Industry Centre in Wagga and the NSW Department of Primary Industries and has been represented at the Winemakers’ Federation OF Australia and Wine Grape Growers’ Australia. The NSW Wine Awards was the major promotional event in 2007 and the Awards continue to grow in status and credibility. Increased support from the NSW government sponsorship has allowed the Association to engage a publicist to help promote the results of this event. Following the publication of the Fine Wines of NSW guide in November 2006 the Association reviewed its promotion plan. In the course of this review negotiations were held with Fairfax Publications establishing NSW Wine Week with a major consumer event – called Sydney Cellar Door – held in Hyde Park. The first of these was held on 9 March 2008 and attracted over 15,000 people. The Association has a three-year agreement with Fairfax with a review after that time. The NSW Government provided some funding support for the inaugural event.


The R&D committee is working with DPI and the Rural Lands Protection Boards to assist the identification of vineyards within the State for bio-security and general information gathering. Discussions have progressed to the stage that a question is being included in the 2008 Annual return seeking information on the area of vines on the land holding. This will provide the NSW Government and the NSWWIA with a data base of grapegrowers that can be accessed in time of disease or other emergencies. The NSW Government passed the new Liquor Act in late 2008 which incorporates most of the requests of the wine industry. There are some technical drafting matters in the Act that need to be addressed but overall a satisfactory result for the industry after a decade of lobbying. The new Act is expected to become operational in the second half of 2008.

MIA Vine Improvement Society 2007 Activity Report – Emma Grabham The year 2007 was a surprisingly busy year for the MIA Vine Improvement Society (MIAVIS). MIAVIS underwent a structural change with Emma Grabham, recently of the Wine Grapes Marketing Board, commencing as Executive Officer and James Foscarini as Farm Assistant. All activities of MIAVIS are now undergoing review. The top priorities of this review are cutting season operations, customer relations and quality assurance systems. The 2007 cutting season ran from June through to September with customers ranging from growers and nurseries located both locally and interstate. The following table outlines the clonal/varietal breakdown of 2007 sales. The 2008 year is set to be an impressive one with MIAVIS so if you would like to be involved in any way please contact Emma Grabham on any of the included contact details. PO Box 167 Yenda NSW 2681 Phone 02 6968 1202 Fax: 02 6968 1479 Mob: 0429 318 397 Email [email protected]

Vinifera Cuttings Vinifera Cuttings Brown Fronti 200 Tempranillo 16300 Cab Sauv 7000 Traminer 10500 Chambourcim 6700 Verdelho 300 Chardonnay 1200 Vermintino 1400 Furmint 183 White Fronti 3000 Harslevelu 210 Rootstock Cuttings Merlot 1200 1103 Paulsen 10500 Pinot Gris 3400 140 Ruggeri 24480 Pinot Marifield 2000 Dogridge 10000 Pinot Noir 2500 K51-40 8900 Red Fronti 16000 Paulsen 26900 Sangiovese 650 Ramsey 211150 Sauv Blanc 39600 Schwartzmann 12960 Semillon 800 Teleki 5C 600 Shiraz 92000


WINE GRAPES MARKETING BOARD for the City of Griffith and the Local Government Areas of Leeton,

Carrathool and Murrumbidgee

INCOME STATEMENT for the Year Ended 31 December 2007

31/12/06 Note 31/12/07 $ $

REVENUE 87,811 Other Operating Revenue 2 30,380 51,682 Interest 71,917 16,746 Grants 3 2,720

701,377 Fees and Charges on Growers 4/13 734,845 - Profit on Sale of Assets 2,457

857,616 TOTAL REVENUE 842,319

EXPENDITURE 13,636 Audit Fees 13,264

1,123 Bank Fees 905 51,317 Board Fees and Allowances 50,747 28,061 Consultancy Fees 15,228 37,583 Depreciation 32,752

978 Fringe Benefits Tax 4,547 175,013 Other Administration Expenses 5 156,216

- Promotion 497 235,352 Salaries, Wages & Superannuation 230,408 122,087 Subscriptions 116,539

28,623 Travelling expenses 15,430 53 Impairment Loss -

5,855 Employees Leave Entitlements 3,859 189 Loss on Sale of Assets -

699,870 TOTAL EXPENDITURE 640,392

157,746 PROFIT FOR THE PERIOD 201,927

The Income Statement is to be read in conjunction with the notes to and forming

part of the financial report.




BALANCE SHEET as at 31 December 2007

31/12/06 CURRENT ASSETS Note 31/12/07 $ $

708,192 Cash & Cash Equivalents 6 927,436 65,096 Trade and Other Receivables 7 31,177

300,000 Other Financial Assets 8 327,3671,073,288 Total Current Assets 1,285,980

NON-CURRENT ASSETS

615,425 Property, Plant & Equipment 9 736,376615,425 Total Non-Current Assets 736,376

1,688,713 TOTAL ASSETS 2,022,356

CURRENT LIABILITIES

44,006 Trade and Other Payables 10 43,69117,177 Employee Benefits 11 19,50861,183 Total Current Liabilities 63,199

NON-CURRENT LIABILITIES

10,317 Employee Benefits 11 12,28410,317 Total Non-Current Liabilities 12,284

71,500 TOTAL LIABILITIES 75,483

1,617,213 NET ASSETS 1,946,873

EQUITY

63,667 Reserves 12 191,4001,553,546 Retained Earnings 12 1,755,4731,617,213 TOTAL EQUITY 1,946,873

The Balance Sheet is to be read in conjunction with the notes to and forming part of the

financial report.




STATEMENT OF CHANGES IN EQUITY for the Year Ended 31 December 2007

31/12/06 Note 31/12/07 $ $

RESERVES

Asset Revaluation Reserve

63,667 Balance on 1 January 63,667- Revaluation of land & buildings 12 127,733

63,667 Balance on 31 December 191,400

RETAINED EARNINGS

1,395,800 Balance on 1 January 1,553,546157,746 Profit for the year 12 201,927

1,553,546 Balance on 31 December 1,755,473

1,617,213 TOTAL EQUITY 1,946,873

The Statement of Changes in Equity is to be read in conjunction with the notes to and

forming part of the financial report.




CASH FLOW STATEMENT for the Year Ended 31 December 2007

31/12/06 Note 31/12/07 Inflows Inflows

(Outflows) (Outflows) $ $

CASH FLOWS FROM OPERATING ACTIVITIES RECEIPTS

1,298,430 Wineries & Growers 1,171,69116,746 Grants Received -42,924 Interest Received 75,78490,196 Other 86,484

1,448,296 PAYMENTS 1,333,959

(283,059) Employee Benefits (279,356)(378,314) Payments to Suppliers (347,632)

(597,053) Payments to Growers (436,846)(1,258,426) (1,063,834)

NET CASH PROVIDED BY OPERATING

189,870 ACTIVITIES 14 270,125 CASH FLOWS FROM INVESTING ACTIVITIES

- Payments for Held-to-Maturity Investments (27,367)- Proceeds from Sale of Fixed Assets 53,094

(18,077) Payments for Property, Plant & Equipment (76,608)(18,077) NET CASH USED IN INVESTING ACTIVITIES (50,881)

171,793 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 219,244

536,399 Cash & cash equivalents at 1 January 708,192708,192 Cash & cash equivalents at 31 December 6 927,436

The Cash Flow Statement is to be read in conjunction with the notes to and forming

part of the financial report.




NOTES TO AND FORMING PART OF THE FINANCIAL REPORT for the year ended 31 December 2007

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Wine Grapes Marketing Board (the Board) is domiciled in Australia. The financial report was authorised for issue by the Board on 12 March 2008. Statement of Compliance The financial report is a general purpose financial report and has been prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting Standards Board (“AASB”) except for exemptions under AASB1 and options provided for non-for-profit entities, and in compliance with Section 41B of the Public Finance and Audit Act 1983. The financial report of the Wine Grapes Marketing Board complies with IFRSs and interpretations adopted by the International Accounting Standards Board. The financial report is for the Wine Grapes Marketing Board as an individual entity. Non for-profit status Under AIFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with International Financial Reporting Standards (IRFS) requirements. The Board has analysed its purposes, and operating philosophy and determined that it does not have profit generation as a prime objective. Consequently where appropriate the Board has elected to apply options and exemptions within AIFRS that are applicable to not-for-profit entities. Basis of Preparation All amounts are rounded to the nearest dollar and are expressed in Australian currency. The financial report has been prepared on accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of consideration given in exchange for assets. The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ these estimates. These accounting policies have been consistently applied by the Wine Grapes Marketing Board.




NOTES TO AND FORMING PART OF THE FINANCIAL REPORT for the year ended 31 December 2006 (continued)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Basis of Preparation (continued) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (a) Property, Plant & Equipment Land and buildings are recorded at their fair value, being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction. It is the policy of the Board to have an independent valuation of land and buildings every three years, with annual appraisals being made by directors. The property was valued by John Carbone, AAPI Certified Practicing Valuer on 30 November 2007 on the basis of current market value. Plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Increases in the carrying amount arising from the revaluation of land and buildings are credited to the asset revaluation reserve, except to the extent that the increase reverses a prior year decrement for that class of asset that has been recognised as an expense, in which case the increase is recognised as revenue up to the amount of the expense. Decreases in the carrying amount arising from the revaluation of Land & Buildings are recognised as an expense, except to the extent that prior increases are included in the asset revaluation reserve, in which case the decrease is debited to the asset revaluation reserve to the extent of remaining increases. Depreciation Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives in the current and comparative periods are as follows: Class of Fixed Asset Depreciation Rate Buildings 2.5% Motor Vehicles 20% Research Equipment 25% Office Equipment 11.25% - 25% Computer Equipment 20% - 33% Generally, physical assets with a cost of less than $500 are expensed in the year of acquisition. However, the Board has determined that all items of research, computer and office equipment which are easily transportable, be capitalised regardless of the cost of acquisition. See Note 9.





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (b) Financial Instruments Financial instruments are initially recognised at cost, including transaction costs, when the related contractual rights or obligations exist. Subsequent to intial recognition financial instruments are measured as set out below: Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market and are stated at amortised cost using the effective interest rate method. Held to maturity investments These investments are non-derivative financial assets and have fixed maturities and it is the Board’s intention to hold these investments to maturity. The held to maturity investments of the Board are stated at amortised cost using the effective interest rate method. Changes are recognised in the income statement when impaired, derecognised or through the amortisation process. (c) Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integrated part of Wine Grapes Marketing Board’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Accounting for finance income and expense is discussed in note 1(h). (d) Trade and other receivables Trade and other receivables are stated at cost less impairment losses. Collectibility of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. (e) Impairment The carrying amounts of the Board’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds it recoverable amount. Impairment losses are recognised in the income statement, unless an asset has been previously revalued, in which case the impairment loss is recognised as a reversal to the extent that previous revaluation with any excess recognised through profit or loss. (f) Employee Benefits Provision is made for the Board’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries, annual leave and long service leave which will be settled after one year, have been measured at amounts expected to be paid when the liability is settled plus related on costs. Other employee benefits payable later than one year have been measured at the present value of estimated future cash flows to be made for those benefits. Contributions are made by the Board to an employee superannuation fund and are charged as expenses when incurred.





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (g) Trade and other Payables Payable amounts represent liabilities for goods and services provided to the Board. Trade and other payables are stated at their amortised cost. (h) Revenue Goods and services rendered Revenue from the sale of goods is recognised in the income statement when significant risks and rewards of ownership have been transferred to the buyer. Revenue from services rendered is recognised in the income statement net of fees & charges returned to growers, in proportion to the stage of completion of the transaction at balance sheet date. The stage of completion is assessed by reference to surveys of work performed. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due, or the costs incurred or to be incurred cannot be measured reliably.

Interest Interest revenue is recognised on an accrual basis taking into account the interest rates applicable to the financial assets.

Other revenue Other revenue is recognised by the Board when it is probable that the economic benefits associated with the transaction will flow to the Board. Revenue is measured at the fair value of consideration or contributions received or receivable. (i) Income Tax The Board is exempt from income tax.

(j) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of the goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of the GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (k) Board Activities The Board is not involved in the buying of wine grapes from growers and the selling of these grapes to winemakers. The Board’s legislation - Wine Grapes Marketing Board (Reconstitution) Act 2003 requires that wineries make payment for purchases from non-complying contracted growers and all spot market purchases as directed by the Board. The Board directs these wineries to apply to the Board for the ability to make payments directly to growers, provided Board fees and charges are deducted from the growers’ payment and forwarded to the Board as per the provisions in the Act. One winery paid through the Board this financial year. This is shown in the Statement of Cash Flows as winery receipts. See Note 13. Board fees and charges are deducted from payments made to growers. Payment dates are set by the Board in accordance with the Wine Grapes Marketing Board (Terms and Conditions of Payment) Order 2005 under the Act. NOTE 2: OTHER REVENUE

31/12/06 31/12/07 $ $ 73,775 Fees & Charges 16,48814,036 Other 13,89287,811 30,380

NOTE 3: RESTRICTED FUNDS - RESEARCH FUND In 2007 the Board applied to the Australian Wine & Brandy Corporation for funding of its Utilisation and Pricing Survey. No other grant funds were received. The transactions for the year ended 31 December 2007 and the financial position at 2007 year end are detailed below:

31/12/06 31/12/07 $ $

7,273 Balance on 1 January -11,954 CRCV Grant (Conversion Trial) -

3,042 CRCV Grant (Grape Maturity R & D) -1,750 AWBC Grant (Pricing Survey) 2,720

24,019 2,720- Reimbursement -

24,019 Research Outlays 2,720- Balance at 31 December -





NOTE 4: FEES & CHARGES ON GROWERS For the 2007 vintage the fees and charges were $3.90 per tonne (fresh weight of wine grapes) for the purpose of funding the grower approved budget, activities and services of the Board. Charges on growers represents the grower contribution to Board services and activities via the Statutory levy. In 2007 returned levies represented both fees and charges remitted by wineries from non-constituted wine grape growers. The following table shows the fees and charges received and returned during the year:

31/12/06 31/12/07 $ $

944,220 Fees and charges paid by growers 735,382

(816) Fees & charges returned to non-constituted growers (537)

(128)

Fees & charges returned to constituted growers (2004 liability) -

(241,899)

Fees and charges 2006 outstanding liability (outstanding cheque taken up)

-

701,377 NET RECEIPTS (Fees and charges retained) 734,845 NOTE 5: OTHER ADMINISTRATION EXPENSES Details of the components of this item are as follows:

31/12/06 31/12/07 $ $ 11,818 Accountancy 7,822 51,490 Advertising, Printing & Stationery 47,790

6,639 Computer Expenses 8,981 654 Conferences & Seminars 756 455 Donations 2,864

11,934 Industry Functions 12,712 17,095 Insurance 15,629

7,836 Legal Fees 2,591 7,828 Motor Vehicle Expenses 7,234

11,064 Office Expenses 8,913 20,809 Postage, Telephone & Facsimile 19,318

1,950 Rates 2,059 18,280 Research & Development Function 7,080

- Research Project Payments 9,336 1,000 Sponsorship 2,000

396 Staff training 16 5,765 Sundry 1,115

175,013 156,216





NOTE 6: CASH & CASH EQUIVALENTS

31/12/06 31/12/07 $ $ 476,443 Administration Account 155,824231,749 Grower Payments Cheque Account 771,612708,192 927,436

NOTE 7: TRADE AND OTHER RECEIVABLES

Amounts owing to the Board at 31 December 2007 comprise:

31/12/06 31/12/07 $ $ 44,015 Trade Debtors 2,164

(53) Less: Allowance for Doubtful Debts -9,115 GST Receivable 9,230

- Prepaid Insurance 11,63112,019 Accrued Income 8,15265,096 31,177

NOTE 8: OTHER FINANCIAL ASSETS

31/12/06 31/12/07 $ $ 300,000 Held-to-Maturity Investments-term deposit 327,367300,000 327,367





NOTE 9: PROPERTY, PLANT & EQUIPMENT

31/12/06 31/12/07 $ $

Land & Buildings Freehold Land at:

220,000 - independent valuation 16 December 2004 -- - independent valuation 30 November 2007 320,000

220,000 320,000 Buildings at:

325,914 - at independent valuation 16 December 2004 -- - at independent valuation 30 November 2007 330,000

(16,435) Less accumulated depreciation (1,072)309,479 328,928529,479 Total Land & Buildings 648,928

66,192 Office Equipment 54,386

(42,076) Less: Accumulated Depreciation (35,690)24,116 18,69667,246 Motor Vehicles 69,141

(17,185) Less: Accumulated Depreciation (9,174)50,061 59,96737,129 Computer Equipment 33,063

(30,298) Less: Accumulated Depreciation (28,891)6,831 4,172

35,157 Research Equipment 36,475(30,219) Less: Accumulated Depreciation (31,862)

4,938 4,61385,946 Total Plant & Equipment 87,448

615,425 Total Property, Plant & Equipment 736,376

MOVEMENT IN CARRYING AMOUNTS

WDV Land & Buildings

$

Research Equipment

$

Office Equipment

$

Motor Vehicle

$

Computer Equipment

$

Totals

$

Balance at 1 January 2006

533,427 5,236 20,168 63,511 12,778 635,120

Acquisitions 4,113 3,054 8,687 - 2,223 18,077

Depreciation (8,061) (3,352) (4,739) (13,450) (7,981) (37,583)

Disposals - - - - (189) (189)

Revaluation increments/decrements

- - - - - -

Balance at 31 December 2006

529,479 4,938 24,116 50,061 6,831 615,425





NOTE 9: PROPERTY, PLANT & EQUIPMENT (continued)

WDV Land & Buildings

$

Research Equipment

$

Office Equipment

$

Motor Vehicle

$

Computer Equipment

$

Totals

$

Balance at 1 January 2007

529,479 4,938 24,116 50,061 6,831 615,425

Acquisitions 373 1,318 4,002 69,141 1,773 76,607

Depreciation (8,657) (1,643) (4,468) (13,552) (4,432) (32,752)

Disposals - - (4,954) (45,683) - (50,637)

Revaluation increments/ decrements

127,733 - - - - 127,733

Balance at 31 December 2007

648,928 4,613 18,696 59,967 4,172 736,376

NOTE 10: TRADE AND OTHER PAYABLES

31/12/06 31/12/07 $ $ 10,834 Trade Creditors 13,947

4,051 PAYG Withholding 3,94829,121 Accruals 25,79644,006 43,691

NOTE 11: EMPLOYEE BENEFITS CURRENT

31/12/06 31/12/07 $ $ 17,177 Provision for Annual Leave 19,50817,177 19,508

NON-CURRENT

31/12/06 31/12/07 $ $ 10,317 Provision for Long Service Leave 12,28410,317 12,284





NOTE 12: CAPITAL & RESERVES RESERVES

31/12/06 31/12/07 $ $ 63,667

- Opening balance Revaluation increment on land and buildings

63,667 127,733

63,667 191,400 RETAINED EARNINGS

31/12/06 31/12/07 $ $

Retained earnings at the 1,395,800 beginning of the financial year 1,553,546

157,746 Profit for the period 201,927

Retained earnings at the end of the 1,553,546 financial year 1,755,473

Revaluation Reserve The revaluation reserve relates to land and buildings measured at fair value in accordance with Australian Accounting Standards. NOTE 13: REMITTANCES RECEIVED FROM WINERIES The Board can direct wineries to pay growers directly provided certain conditions are met. The Board’s legislation (Wine Grapes Marketing Board (Reconstitution) Act 2003) requires that all wineries make payment for purchases (not subject to complying contracts) as directed by the Board. The Board requests wineries apply to the Board for the ability to make payments directly to growers, provided all fees and charges are deducted from the growers’ payment and forwarded to the Board as per the Act. One winery was required to be paid through the Board in 2007 for its October final payment due to interest being applied on a delayed payment. In 2006 the Board by motion returned to all leviable growers an amount of $1 per tonne. This is shown in the table below:

31/12/06 31/12/07 $ $

1,298,430 Winery/Grower Receipts 1,171,616(355,026) Grower Payments (436,234)(242,027) Levies Returned (537)

701,377 NET RECEIPTS (Levies retained) 734,845


WINE GRAPES MARKETING BOARD

for the City of Griffith and the Local Government Areas of Leeton, Carrathool and Murrumbidgee

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT

for the year ended 31 December 2007 (continued) NOTE 14: RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO OPERATING RESULT

31/12/06 31/12/07 Inflows Inflows

(Outflows) (Outflows) $ $ 157,746 OPERATING RESULT 201,927

Adjustments for: 37,583 Depreciation 32,752

189 (Profit)/Loss on Sale of Assets (2,457) (3,777) (Increase)/Decrease in Receivables 41,683 (8,758) (Increase)/Decrease in Accrued Income 3,867 13,683 (Increase)/Decrease in Prepayments (11,631)

(13,305) Increase/(Decrease) in Payables (314) 6,509 Increase/(Decrease) in Employee Entitlements 4,298

189,870 Net Cash provided by operating activities 270,125

NOTE 15: FINANCIAL INSTRUMENTS (a) Significant Accounting Policies

Financial assets and liabilities are recorded at amount due and payable. (b) Interest Rate Risk

The Wine Grapes Marketing Board’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate on those financial assets and financial liabilities, is as follows:

2006 Fixed Interest Rate Effective

Interest Rate

Variable Interest

$

Less than 1 year $

1 to 5 years

$

More than 5 years $

Non-Interest Bearing

$

Total $

Financial Assets Bank Term Deposits Trade and Other Receivables

5.75% 5.60%

-

708,192--

-300,000

-

---

---

- -

65,096

708,192300,000

65,096-

708,192 300,000 - - 65,096 1,073,288 Financial Liabilities

- - - - 44,006 44,006

Payables N/A - - - - 44,006 44,006





NOTE 15: FINANCIAL INSTRUMENTS (continued) (b) Interest Rate Risk (continued)

2007 Fixed Interest Rate Effective

Interest Rate

Variable Interest

$

Less than 1 year $

1 to 5 years

$

More than 5 years $

Non-Interest Bearing

$

Total $

Financial Assets Bank Term Deposits Trade and Other Receivables

6.25% 6.5%

-

927,436--

-327,367

-

---

---

- -

31,177

927,436327,367

31,177

927,436 327,367 - - 31,177 1,285,980 Financial Liabilities

- - - - 43,691 43,691

Payables N/A - - - - 43,691 43,691(c) Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial instruments is the carrying amount of those assets, net of any provisions for doubtful debts, as disclosed in the balance sheet and notes to the financial statements. At balance date there were no significant exposures to credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset in the balance sheet.

(d) Net Fair Value All Financial Assets and Liabilities are not traded on organised markets in standardised form. Net fair value is determined with reference to, and as a result is not materiality different from the carrying amounts of the assets and liabilities in the balance sheet determined in accordance with the accounting policies disclosed above. The fair values together with the carrying amounts shown in the balance sheet are as follows:

Fair Values Carrying Amount

Fair Value

Carrying Amount

Fair Value

2006 $

2006 $

2007 $

2007 $

Financial Assets Cash and Cash Equivalents Trade and other Receivables Other Investments Financial Liabilities Trade and other Payables

708,19265,096

300,000

44,006

708,19265,096

300,000

44,006

927,436

31,117 327,367

43,691

927,43631,117

327,367

43,691





NOTE 15: FINANCIAL INSTRUMENTS (continued) (e) Estimation of Fair Values

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table. Securities Fair value is based on quoted market values at the balance sheet date without any deductions for transaction costs.

Trades and Other Receivables / Payables For receivables / payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables / payables are discounted to reflect fair value.

NOTE 16: COMMITMENTS There were no capital commitments as at 31 December 2007. NOTE 17: CONTINGENT LIABILITIES The Board is not aware of any contingent liabilities as at the date of signing off the accounts. NOTE 18: SEGMENT REPORTING The Board is based in Griffith, NSW. It derives its income via fees and charges on growers of winegrapes producing greater than 20 tonnes within the City of Griffith and the Local Government Areas of Leeton, Carrathool and Murrumbidgee. NOTE 19: RELATED PARTY TRANSACTIONS During the 2007 Financial Year there were no related party transactions, other than Board Fees & Allowances. All Board members are grower elected members. All other business transactions undertaken between the Board and Board members are done so at arms length and under normal commercial arrangements. NOTE 20: KEY MANAGEMENT PERSONNEL Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the board, either directly or indirectly. The key management personnel of the Board comprise the directors, and executive management who are responsible for the financial and operational management of the Board.

31/12/06 31/12/07 $ $ 142,494 Total Compensation – Short-Term Benefits 143,328

10,286 Total Compensation – Long-Term Benefits 10,535152,780 153,863





NOTE 21: FINANCIAL RISK MANAGEMENT The Board’s activities expose it to credit and liquidity risks. The Board’s overall risk management program focuses on the key risk of unpredictability in financial markets and seeks to minimise potential adverse affects on the financial performance of the Board. (a) Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks as well as credit exposures including outstanding receivables. The maximum exposure to credit risk at balance date is the carrying amount of financial assets as summarised in note 15(d). To manage its credit risk the Board invests in term deposits to maximise its return on surplus funds while reducing the potential effect of the short term unpredictability of financial markets and the effect this may have on its return on surplus funds. Due to the size and fixed nature of the term deposits at balance date WGMB’s exposure to credit risk is considered immaterial to the overall profitability of the entity.

(b) Liquidity risk

Liquidity risk is the risk that the Board will encounter difficulty in meeting obligations associated with financial liabilities. The maximum exposure to liquidity risk at balance date is the carrying amount of financial liabilities as summarised in note 15(d). To manage its liquidity risk the Board monitors its cash flow requirements to maintain sufficient cash to pay its debts as and when they fall due.

End of Audited Accounts


WINE GRAPES MARKETING BOARD - 2008 CONSOLIDATED BUDGET 2007 Budget 2007 Actual EXPENSE ACCOUNTS Notes 2008 Budget

INCOME $726,960 $734,845 Rates 190,000 tonnes @ $3.90/t 1 $741,000 $33,500 $71,917 Interest from Bank Accounts $45,000 $30,372 $30,380 Income from Operating Activities 2 $4,787 $48,590 $50,445 Proceeds from Sale of Assets - $39,500 $2,720 Research Funds 2 $75,035 $875,922 $890,307 TOTALS $865,822

OPERATING EXPENDITURE $10,915 $7,822 Accountancy Fees $9,415 $58,110 $47,790 Advertising, Printing and Stationary $32,365 $17,000 $13,264 Audit Fees - Statutory $17,500 $1,400 $905 Bank Fees and Charges $1,500

$52,000 $50,747 Board Fees and Allowances $52,000 $11,615 $8,981 Computer Expenses $8,420 $5,100 $756 Conferences/Seminars $750

$99,125 $15,228 Consultancy Fees 3 $78,500 $38,000 $32,752 Depreciation Expense $38,000

- $2,864 Donations $500 $3,500 - Employment Expenses $3,000 $4,500 $4,547 Fringe Benefits Tax $5,000

$10,800 $12,712 Industry Functions $11,807 $20,081 $15,629 Insurance $19,575 $12,150 $2,591 Legal Fees $11,600

- ($2,171) Loss of Sale of Fixed Assets - $12,630 $7,234 Motor Vehicle Operating Expenses $11,390 $12,159 $8,913 Point of Access Office Expenses $10,648 $22,655 $19,318 Postage, Telephone and Facsimile $22,645

$250 $497 Promotions - $15,706 $3,859 Employee Leave Entitlements $4,456 $2,700 $2,059 Rates $3,200 $4,200 $7,080 Research Consumables $5,000

$20,000 $9,336 Research Payments $21,500 $270,928 $230,408 Salaries, Wages and Superannuation 4 $277,541

$1,000 $2,000 Sponsorship 5 $11,000 $600 $16 Staff Training $2,900

$123,317 $116,539 Subscriptions 6 $22,925 $1,200 $1,115 Sundry Expenses $1,670

$34,005 $15,430 Travelling Expenses $17,780 $865,646 $638,221 SUB TOTAL $702,587

CAPITAL EXPENDITURE $500 $373 Building Expenditure -

$71,000 $69,141 Motor Vehicles Purchase - $1,500 $4,002 Office equipment $1,000 $5,500 $1,773 Computer equipment $2,000 $4,031 $1,318 Research equipment $1,500

$82,531 $76,607 SUB TOTAL $4,500 $948,177 $714,828 TOTAL EXPENDITURE $707,087 ($69,255) $175,479 SURPLUS/(DEFICIT) $158,735


NOTES TO THE 2008 CONSOLIDATED BUDGET The following is to explain select items of the budget. NOTE 1: FEES AND CHARGES The rate of the fees and charges was set at 190,000 tonnes (186,400 tonnes in 2007). The forecast figure of 190,000 tonnes was presented to growers at the December meeting to confirm the rate of the Board fees and charges for 2008. Current information indicates that the crop from constituted growers will be much greater. The Board will look to return excess fees and charges back to growers during the 2008 financial year of the Board. NOTE 2: INCOME FROM OPERATING ACTIVITIES The reduction in this income account is principally due directly to the apportionment of income to the correct account. Previously income from the Board laboratory activity was placed into operating activities, this is now being placed against research funds as it better reflects the activity from which the income is derived. NOTE 3: CONSULTANCY FEES The increase in the expenditure on this account is due to the costs of the satellite imagery and the development of the images for use in the Board database of land use for the region. In 2008 new areas that have come into production since 2003 were covered along with a reimaging of the existing areas to capture changes in land use. The cost of this work is now being shared with Riverina Citrus. NOTE 4: SALARIES, WAGES AND SUPERANNUATION The increase in budgeted salaries is due to the appointment of a Technical Officer to the Board. NOTE 5: SPONSORSHIP The increase is sponsorship is due to the continued sponsorship of the Riverina Field Day on behalf of all growers. In previous years this expense was placed against advertising. Its placement as sponsorship is a more correct statement of the use of these funds. NOTE 6: SUBSCRIPTIONS A decrease in the subscriptions has been the removal of the funding of the federal growers body, Wine Grape Growers Australia. In 2007 the Board funded services of $94,000 along with the membership of the NSW Wine Industry Association, Australian Viticulture and Sundry subscriptions. The Board believes that growers should become members of the federal body in their own right and follow the example of the other major producing regions in that growers are members by their own volition and not through the Board.

A N N U A L R E P O R T 2 0 0 7

text 2007 annual report - parliament.nsw.gov.au · the elected members of the board have a three...

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