SA Government Unveils $109m Support Package for Struggling Wine Industry

The South Australian government has unveiled a $109 million support package aimed at helping the state's struggling wine industry, which has been hit hard by a global glut of red wine and China's ban on Australian wine imports.

Premier Peter Malinauskas announced the package, which includes $100 million dedicated to loans to help growers transition to other crops, with eligible growers able to access up to $500,000 with no principal or interest repayments required for the first two years.

The loans will be split into two groups, with smaller growers able to access up to $250,000 and larger entities up to $500,000. The support package also includes funding to support the disposal of chemically treated wine posts, addressing wine surplus inventories, and a two-year extension of the Global Wine Growth Program to drive international demand.

Liberal MP and ex-Riverland wine grape grower Tim Whetstone, who has been calling for support for years, welcomed the announcement but said more detail was needed.

"I've seen the hardship that my constituency and the region have been through over [the last] four to five years," he said.

Shadow Primary Industries Minister and Riverland resident Nicola Centofanti echoed Mr Whetstone's comments, but questioned the 7.2 per cent interest rate once the two-year reprieve concludes.

"It appears to be more of a commercial rate than a concessional one," she said.

Chief executive of Freestone Estate Lucy Clemments said she believed about 10 to 15 per cent of SA winegrape growers had already left the industry in recent years.

"It's been tough for a very long time," she said. "It is a pivotal moment for all South Australian growers and winemakers, and it's the start of a journey of recovery."

Chief executive of Riverland Wine Andrew Weeks said the wine grape crisis is evident everywhere you look.

"If you travel round [our region] there's a lot of vines that are just turned off, and they're not pulled out," he said. "There are people still making up their minds as to whether they want to continue growing grapes or whether they want to try and get out of the industry altogether or transition to something else, so hopefully this provides some cause for optimism for people to start making plans."

Premier Peter Malinauskas said the package was designed to provide an equitable way forward for everyone working within the $2.4 billion industry.

"The wine industry is [central] not just to the state's economy, but, frankly, to the state's identity," he said.

The premier said it had taken time to deliver the support package because it was something his government did not want to rush.

"We're ultimately talking about an oversupply, which is different to a natural disaster, so it's got to be thought through very carefully how we calibrate this response," Mr Malinauskas said.

Expressions of interest for the loan scheme will be available online next week.