South Australian Grapegrowers Offered $40 per Hectare to Rest Vineyards Amid Industry Downturn

The South Australian Government has announced a new round of financial support for grapegrowers, aiming to help them rest their vineyards during the 2025-26 growing season. This initiative comes as the wine industry in the region faces ongoing challenges, including an oversupply of grapes and persistently low prices. The Department of Primary Industries and Regions (PIRSA) is leading this third round of rebates, which encourages growers to use Ethephon, a plant growth regulator, to rest their red wine vineyards.

Lisa Bennier, CEO of the Wine Grape Council of South Australia, welcomed the announcement. She said that the rebate offers much-needed relief for growers who are struggling with current market conditions. Bennier expressed hope that uncontracted growers would take advantage of the program to reduce their operating costs. She also acknowledged the government’s continued support during what she described as a difficult period for the industry.

Under the scheme, eligible growers can apply for a $40 rebate per hectare sprayed with Ethephon, up to a maximum of 1,000 hectares per Australian Business Number (ABN). The rebate covers Ethephon purchased between July 1, 2025, and January 31, 2026. According to PIRSA estimates, growers who do not expect to sell their fruit could save up to $2,000 per hectare by resting their vineyards. These savings come from reduced input costs, lower water usage, and less need for vineyard management.

Primary Industries Minister Clare Scriven explained that the program is designed for growers who lack viable pricing or contracts for their 2026 crop. She said that resting vineyards can significantly cut management costs and reduce the use of fertilizers and sprays. It also helps conserve valuable irrigation water and prevents unharvested fruit from going to waste, which can attract pests and diseases. Scriven added that this approach gives growers time to assess the long-term viability of their operations.

To support growers considering this option, several organizations have provided resources and information since July 2025. The South Australian Research and Development Institute (SARDI), Riverland Wine, and The Australian Wine Research Institute have all contributed materials to help growers make informed decisions about resting their vines.

Research conducted by SARDI in partnership with Wine Australia has shown that applying Ethephon at the end of flowering is effective in reducing grape yields to levels where harvest is unnecessary. Importantly, this method maintains healthy vine foliage, allowing plants to store energy for future seasons. Studies found that vines treated with Ethephon returned to normal commercial yields in subsequent years and no chemical residues were detected in harvested fruit.

The rebate program is part of broader efforts by the South Australian Government to stabilize the wine industry during a period marked by global oversupply and shifting demand. Growers interested in participating in the vineyard resting trial or seeking more information are encouraged to contact PIRSA or visit its website for application details.