Riverland, Australia – Accolade Wines’ proposal to buy out CCW Co-operative’s contracts has been decisively rejected by the co-op’s members. The proposal, which would have allowed members to sell portions of their red wine contracts for $4,000 per hectare, was intended to address the oversupply of bulk wine in a declining market.
Accolade Wines highlighted the severe challenges faced by the Australian wine industry, citing increased costs, reduced consumer demand, and a challenging bulk wine market. “The market value of grapes, particularly red grapes, is now unsustainable and below production costs,” the company stated. “Something must be done to keep our industry alive and thriving for many years to come.”
Despite these concerns, the proposal was overwhelmingly rejected at the Co-op’s AGM on Tuesday night, with 95 percent of members voting against it. The vote saw 314 members opposed and just 17 in favor.
CCW Co-op General Manager Peter Szabo noted the lack of government support as a significant factor in the decision. “The government budget has offered no money as support to the growers, making it difficult to transition without free capital,” Szabo said.
Monash grower Paramjit Singh Bagri expressed frustration with the offer, deeming it insufficient. “What they’re offering us is not fair,” he told ABC. “$4,000 is nothing these days. It wouldn’t even cover the post removal. We need $50,000 per hectare. If they gave us that much money, we could leave tomorrow.”
Accolade Wines expressed disappointment with the vote’s outcome, stressing the urgency of industry reform. “The package was the only measure proposed nationally to support a necessary transition to a more sustainable footing,” the company said in a statement. “It is not realistic to expect that the industry can continue operating without adapting to global conditions and demand influences. Without change, grower and winery businesses will continue to suffer.”
The company criticized the current supplier agreement with CCW as outdated and damaging to both growers and Accolade over an extended period. The Board of Accolade Wines will now review the implications of the CCW decision and consider the next steps.
As the industry grapples with these challenges, the future for Riverland winegrowers and the broader Australian wine sector remains uncertain.
