“We are undertaking this market study after growers raised concerns about a range of competition issues and contracting practices in the industry,” said Australian Competition and Consumer Commission deputy chairman, Mick Keogh.
“Growers say they carry too much of the risk in their contracts, and many say there is a lack of competition between buyers for their grapes.
“We want to get to the bottom of these concerns and, if necessary, make recommendations to improve the competitiveness of the market.”
Last year the ACCC invited wine grape grower feedback about competition issues in the wine industry, via an online survey.
That survey posed a range of questions allowing grape growers to share their experience.
Public forums will be held in wine grape growing areas to hear directly from interested stakeholders.
The ACCC is seeking submissions about levels of competition between grape buyers and the bargaining power and risk allocation across the entire supply chain, particularly in relation to growers and wine makers.
It also wants to hear from producers about price transparency and quality assessment and the nature of contracts between growers and wine makers (including the timing of price notifications and payments).
The inquiry will explore the effect of the existing voluntary industry code of conduct and dispute resolution processes, and the use of collective bargaining by growers.
Anonymous tips allowed
The ACCC said it would accept submissions on a confidential or anonymous basis, acknowledging some stakeholders may be concerned about adverse reactions from commercial partners if they spoke to the commission.
Similarly, some firms may be reluctant to provide potentially commercially sensitive data which the ACCC needed to help it understand how the industry operated.
Mr Keogh said information was invited through written and oral submissions in response to an issues paper which had just been released.
“We want to hear from anyone involved in the industry from any side who has information relevant to this study,” he said.
“If there are those who’d prefer to remain anonymous, our teams are used to handling sensitive, confidential information and we encourage people to get in touch – whether it is on or off the record.”
Dates and locations of the public consultation forums would be announced soon.
The ACCC will analyse information collected from submissions and forums and will publish draft findings for further comment, likely in the first quarter of next year.
