by Ken Gargett
Sam Holmes, the inaugural chief executive of the recently formed Barossa Grape and Wine Association (BGWA), began his tenure by drawing attention to some of the dangers facing the Australian wine industry. His key concern was the oversupply of grapes resulting from the massive increase in plantings over recent years.
Holmes noted that "oversupply remains a very real concern for both grape-growers and winemakers across Australia." He also noted that while tax incentives for managed investment schemes in the agricultural sector had been useful for attracting investors to the wine industry at a time when they were needed, these schemes had tripled and were now distorting market forces. Indeed, one of the first tasks he faces is the preparation of the BGWA’s submission to the Government inquiry into the costs and benefits of such schemes.
Holmes also raised concerns as to impact of the plantings on the sustainable allocation of scarce resources, especially water, and highlighted the need for cautious planning and planting in view of recent events such as the restructuring by large wine producers like Constellation Wines and Foster’s.
The BGWA was formed to bring together all of the region's grapegrowers and winemakers to enable more successful promotions offshore. Holmes addressed the BGWA's role, saying that "our growers and winemakers in the Barossa are very conscious of the need to protect the region's outstanding reputation for quality and its role as a major national and international tourist attraction."
