New South Wales offers A$2.6 million to wine regions hit by glut and weak demand

Australia and the government of New South Wales are making A$2.6 million available to support wine-producing regions in the state, as growers and wineries deal with a global oversupply of wine and lower consumption.

In a statement issued Tuesday, the New South Wales government said the money will be distributed through the NSW Wine Recovery Program, a federally funded initiative that the state government will administer. The program is aimed at building resilience in wine regions, improving business capability and lifting demand for New South Wales wines inside Australia.

The announcement did not mean grants had already been awarded. It publicized a funding round that opened on October 30 and will close on November 27. Under the rules published by the state government, the money is available to eligible industry organizations that represent winegrape growers or wine producers in New South Wales. Projects must benefit a wine-producing region rather than a single company.

The program has two main funding streams. One covers training, leadership, business resilience and related support for regional wine communities. Grants in that category range from A$20,000 to A$100,000. The other is focused on lifting domestic demand and offers larger grants, from A$20,000 to A$250,000.

That second stream is designed to help regional producers reach more Australian consumers and buyers. According to the official program material, the money can support consumer campaigns promoting New South Wales wine regions, domestic familiarization visits and industry participation in trade shows and events. The maximum grant under that stream is A$150,000 higher than the cap for the capability and training stream.

The state government said the program responds to market conditions that have put pressure on producers. Officials pointed to excess global supply and falling wine consumption as key problems facing the sector. The government said the funding is intended to support practical projects that help the industry adjust to those conditions and find new growth opportunities.

New South Wales Agriculture Minister Tara Moriarty said the wine industry plays an important role in regional economies, supporting jobs, tourism and local communities. She said current conditions are putting pressure on producers and on the regions that depend on them, and described the recovery program as targeted support to help the sector remain competitive.

The funding also forms part of a broader commitment by the federal and state governments to assist primary producers during difficult periods. The New South Wales government said the program is meant to strengthen regional capability, including leadership development, mental health support and business resilience.

The announcement offered new public details on the program’s scale and purpose, but the underlying application process had already begun before Tuesday’s statement. The formal guidelines set out who can apply, what projects are eligible and how applications will be assessed.

The wine industry remains a significant export and regional industry for Australia. According to figures cited by the New South Wales government, Australia is still the world’s fifth-largest producer and exporter of wine. Wine exports were valued at A$2.3 billion in the 12 months through March. In New South Wales, winegrape growers produced about A$150 million in gross value of production in the 2025-26 financial year.

The structure of the program suggests that officials are trying to address two related problems at once: weaker market conditions and the need for stronger regional organizations. The smaller grant range is intended to help industry groups improve skills, leadership and business management capacity. The larger range is meant to support projects that can directly raise the profile of regional wines in the domestic market.

Because the grants are limited to representative industry bodies, individual wineries or growers cannot apply on their own unless they are part of an eligible organization. The state government’s published conditions also make clear that proposals must deliver a regional benefit, which means the funding is not intended for projects serving only one business.

Applications for both streams remain open until November 27.