00:02I'm here at the Riverland Field Days, which is the region's biggest agricultural event,
00:07and it's Australia's biggest wine grape growing region.
00:10And here we're finding out that growers have got a little bit of a bounce in their step
00:13after news from the State Government that they've announced a $109 million support package
00:18for the struggling wine industry.
00:20These funds include a key amount of $100 million for growers to transition
00:26unsustainable, unviable vineyards into other crops, which is a really big deal.
00:33This will be offered initially as a two-year interest-free loan,
00:38and we're waiting to find the detail on how much growers might have to pay after that.
00:42The package also includes $500,000 to try to do something with excess stock of wine,
00:48which we understand could be about 2 billion litres worth of wine in storage.
00:52There's also funds to get rid of treated CCA posts, which are a big issue.
00:58They're the timber posts that are in vineyards, and that growers just need to find another use for
01:02if they're not using them for wine.
01:04There's also funds for a wine industry support officer,
01:07and funds to support growers with sustainable planning for this diversification.
01:14What has led to this is that a lot of growers are really struggling.
01:18They've been getting below cost of production prices for their wine grapes for the last few years,
01:24really not able to make a profit.
01:26We've seen a significant number of wine businesses going into administration,
01:30and they're looking at acquisition as well, and mergers.
01:35And there's lots of wine grape growers mothballing and ripping out their vines
01:40as they just can't make an income, with people drinking less wine across the world.
01:47There's similar things happening in regions like Bordeaux and Napa Valley,
01:50but there has been wine industry support packages rolled out in these places.
01:54So growers have long been crying out for some funds to help them
01:58as the wine industry gets ready for another year of harvest.
02:03I have spoken with some growers today, and yeah, people are pleasantly surprised.
02:09They really didn't think that the state government would ever announce anything for them.
02:14People in the Riverland really felt quite forgotten,
02:17and that they were just going to be left on their own,
02:20both in the dark and their vineyards to just wither.
02:24So yeah, there is a little bit of optimism here at the Field Days from younger growers
02:29who are thinking about what this might mean for their future.
02:34There is also some concern that two years isn't really enough time for people to pay back their loan.
02:39People are in a significant amount of debt, and it really doesn't give enough time for a new crop,
02:44say for example, avocados to bear fruit.
02:48So yeah, really people will be watching out for a bit more detail
02:52and a lot of information on how to make this best work for them.
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