AN Alpine Shire winemaker has said Australia's decision to walk away from a trade deal with European Union (EU) was the right one, offering them more security around the grape variety, prosecco, which is worth millions to the local industry.
Trade Minister Don Farrell ended talks in Osaka last week after the EU refused to budge on geographical indicators being attached to products like prosecco wine, feta and parmesan cheese, which would have prevented Australian producers using the product names.
Michelini Wines sales and marketing manager Kane Michelini said prosecco, as a grape variety, is worth more than $1million to the Myrtleford business.
“The grape variety is incredibly important to this area as it has put Alpine Valleys and King Valley on the map,” he said.
“Prosecco is known within Australia to be of high quality.
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“Much of Australia is in a grape glut and this area is bucking the trend primarily off the back of growth in prosecco.
“Prosecco has always been known as a grape variety and it was pleasing to see Australia walk away from a trade deal which didn't suit us.”
Businesses were faced with uncertainty if geographical indicators (GIs), which identify a product as originating from a specific region, were implemented and this would have involved a phase out period of prosecco that would have cost millions in remarketing the variety.
“If we accepted prosecco as a GI area it would set a precedent for all other varieties to be GI zoned and lock Australia out of export markets,” Mr Michelini said.
“The decision brings no change in the short term; just business as usual.
“But it is nice to have security that this variety has a domestic and export future.
“This security allows for better decision-making long term."
Indi independent federal MP Helen Haines facilitated meetings between a delegation of King Valley winemakers and Mr Farrell and Agricultural Minister Murray Watt in Parliament House late last year, and has discussed the negotiations with Mr Farrell throughout 2023.
“I am pleased Minister Farrell has listened to the concerns of farmers, winemakers, grape growers and the broader agricultural industry on this deal," Dr Haines said.
“What was on the table was not a good deal for regional Australia, and we have seen little progress and compromise by the European Union, so this was the right call for us.”
Speaking following the briefing of industry representatives in Osaka, National Farmer's Federation president David Jochinke said the minister had made the right call for Australia.
"We thank Minister Farrell and Agriculture Minister Murray Watt for standing by Australian farmers and walking away from an unacceptable offer,” Mr Jochinke said.
“It’s disappointing the Europeans weren’t willing to put something commercially meaningful on the table.
“What was on offer would have hardwired protectionism into our trading relationship with Europe for another generation."
