Australian Winemakers Warn Trade Deal Threatens Prosecco Industry

As trade negotiations between Australia and the European Union approach their final stages, concerns are rising among Australian winemakers over the future of the country’s Prosecco industry. Dr. Helen Haines, Independent Federal Member for Indi in Victoria, met with Trade Minister Don Farrell in Parliament last Thursday to urge the government not to agree to any deal that would prevent Australian producers from using the name “Prosecco” on their wines.

Dr. Haines emphasized that Prosecco has become a significant part of Australia’s wine sector, now ranking as the eighth-most produced grape variety in the country. The grape is cultivated across 20 wine regions nationwide, with nearly 60% of production centered in the King Valley region of Victoria. The area is so closely associated with the sparkling wine that it is often referred to as “Prosecco Road.” The industry generates more than $200 million annually in sales and supports local tourism and hospitality businesses.

The European Union has long sought to restrict the use of certain food and wine names under its geographic indicator rules, arguing that names like Prosecco, feta, and parmesan should be reserved for products made in specific regions of Europe. This position has been a sticking point in trade talks with Australia, which has developed its own thriving Prosecco industry over recent decades.

Dr. Haines said that losing the right to use the name “Prosecco” would have serious economic consequences for regional communities. She pointed out that local Prosecco is widely available in restaurants and bottle shops across Australia and has become a favorite among consumers. She also noted that many family-owned businesses have invested heavily in building up the reputation of Australian Prosecco.

In 2023, Dr. Haines worked with local producers and government officials to defend Australia’s right to use the name during earlier stages of negotiations. With talks now nearing completion, she warned that there is much at stake for regional economies.

While Dr. Haines expressed support for free trade and its potential benefits for Australian agriculture, she cautioned against any agreement that would undermine established industries like Prosecco. She called on the Federal Government to protect winemakers and grapegrowers by refusing any deal that would force them to abandon the name.

The outcome of these negotiations will affect not only producers in King Valley but also those across Australia who have built their businesses around Prosecco. As discussions continue, industry stakeholders are watching closely to see whether the government will stand firm on this issue or make concessions to secure a broader trade agreement with the European Union.