A recent report reveals that a prolonged trade dispute with China has led to a 13% decline in wine grape growers since 2018. This has placed increased pressure on small vineyard operators and prompted new legislative measures to support their ability to manage pricing uncertainties. Proposals to bring grape pricing announcements forward in the year may improve growers' ability to plan, though some say these changes highlight deeper issues within the market.
Since China imposed tariffs on Australian wine, the number of growers has dropped from 6,251 in 2018 to about 5,408 in 2024. This reflects greater consolidation of vineyard ownership rather than widespread abandonment of vines. Despite fewer growers, the total vineyard area has remained stable at around 146,000 hectares. In South Australia, the country's leading grape-producing state, the overall land under vines has declined slightly. However, new small-scale plantings show some resilience in parts of the region.
This data comes as new legislation is introduced in South Australia's parliament that would require wineries to publish indicative grape prices by 30 September instead of December. Supporters argue this change would help growers manage budgets more effectively and make more confident planting decisions, potentially preventing losses when prices later prove unviable.
Two key grower groups from the Riverland support the shift, calling it a step toward greater transparency in pricing discussions. While wineries may need to adjust their timelines slightly, industry representatives argue that earlier alignment of expectations offers better results for all stakeholders. This comes after a federal review also backed more timely communication of pricing intentions by winemakers.
Despite the current decline in grower numbers, the wine industry continues to play a major role in Australia's economy. The wider sector, including wine tourism, generates $51.3 billion each year. Tourism alone contributed $34.1 billion in 2024 through over 7.5 million cellar door visits made by local and international travellers. Still, although tourism helps reduce the impact of grape production losses, long-term stability will likely depend on managing global trade risks while pursuing domestic reform.
