Facing the prospect of having to dump fruit or sell it at prices that fail to cover costs of production, the Murray Valley Winegrowers have applied to the Federal Government to extend the Exceptional Circumstances (EC) scheme to provide winegrape growers with the opportunity to apply for assistance. Many of these growers have been affected by McGuigan Simeon Wines, which has used a controversial clause in its contracts relating to market disruption to suspend contracts accounting for around 70,000 tonnes (according to the Murray Valley Winegrowers) of fruit. While it might be argued that the circumstances facing large producers such as McGuigan Simeon hardly equate to market disruption, the effect this company has had on its contracted growers does certainly relate to exceptional circumstances. EC funding is usually drought-related and is typically associated with grain and cattle producers, but to many grape growers the McGuigan Simeon decision will be the final nail in the coffin. The Murray Valley Winegrowers are also petitioning for a relaxation of the Farm Help guidelines to enable assistance for a longer period than 12 months and to enable growers to use it on more than one occasion. The assistance available via the EC and Farm Help schemes includes income support, interest rate subsidies and a Health Care card.
