Stephen Strachan, the Wine Federation of Australia chief executive, said current challenges require evolution rather than revolution.

“We also need to recognise all the contributors to the problem,” Mr Strachan said.

“There is a lot of chatter about the impact of Managed Investment Schemes (MIS) and of the large corporates.

“Likewise, Strategy 2025 is being criticised as a root cause of the plantings boom.”

But Mr Strachan pointed out that dramatic increases in grape prices and wine margins - just a few years ago - encouraged investment.

“Growers who blame the MIS up the road for the surplus conveniently ignore the extra 10 acres of chardonnay they planted in 1998,” he said.

“Similarly, the small winery grasping for shelf space should acknowledge that its 2300 winery peers, as well as the corporates, contribute to oversupply.”

Mr Strachan pointed out two areas the wine industry can focus on for improvement.

“Firstly, our whole industry needs to improve its understanding of the market and the market opportunity,” he said.

“Secondly, we need to work with government to change policies that accelerate deductions to offset current tax liabilities and allow deductions for one business against another business.”

In the second area Mr Strachan said Managed Investment Schemes must accept some of the blame.

“The MIS model has merit given the high entry costs for vineyard establishment,” he said.

“But it has too often been poorly managed, allowing and even encouraging the white shoe brigade to compromise the model by putting inflated fees and financial kickbacks in front of the long-term financial interests of clients.”

Mr Strachan believes the industry must continue to encourage entrepreneurship and innovation as well as long-term thinking and investment.

Meanwhile, Dr John Stocker has resigned from his position as the Australian Wine Research Institute Board chairman.

Dr Stocker, a Goulburn Valley (Victoria) grapegrower and former CSIRO chief executive, was appointed to the chairman position in March this year.

The institute is based at Urrbrae and delivers research and integrated solutions to grape and wine producers. Board members include Geoff Linton, Yalumba Technical and Research Manager, and Brett McKinnon, Orlando Production Manager.

“Growers who blame the MIS up the road for the surplus conveniently ignore the extra 10 acres of chardonnay they planted in 1998.”

- Stephen Strachan

Wine Federation of Aust. chief executive