KING Valley winemakers say Australia's decision to walk away from a trade deal with European Union (EU) was the right one, offering them more security around the grape variety, prosecco, which is worth more than $80 million annually to the local industry.
Trade Minister Don Farrell ended talks in Osaka on Monday, after the EU refused to budge on geographical indicators being attached to products like prosecco wine, feta and parmesan cheese, which would have prevented Australian producers using the product names.
Dal Zotto Wines was a pioneer in planting the prosecco grape variety in Australia, and director Michael Dal Zotto said last week's decision will allow growers in the $200 million-plus sector of Australia's wine industry to continue with certainty for at least the next three years.
"It will allow growers to move forward with investment in prosecco as it is the hero variety of the region," he said.
"It takes away the uncertainty and this will be a three year cycle as the EU goes into an election process."
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Businesses were faced with uncertainty if the GIs were implemented and this would have involved a phase out period of prosecco that would have cost millions of dollars in remarketing of the variety.
"Now we can look at all the vineyard investments that we were looking to graft or plant, we can now step into that process," Mr Dal Zotto said.
"We feel pretty buoyant that we'll continue to grow that segment of the industry, therefore hold more value to the industry overall."
Brown Family Wine Group CEO Dean Carroll said no deal is far better than a bad deal for regional Australia.
He said it's not often all areas of government agree but it's clear on this issue that walking away is the best option for Australia.
"Prosecco is a grape variety and has been for hundreds of years and attempting to force limitations on Australian producers' right to use as part of a 'free trade agreement' is against the very heart of why free trade agreements exist," Mr Carroll said.
"It’s so pleasing to see how the King Valley region in conjunction with our local MP and industry bodies have been able to work together to get the message heard in all the right places.
"This decision not only protects our local industry but opens up opportunities to take King Valley Prosecco to the world, knowing we produce the quality to compete favourably."
Indi independent federal MP Helen Haines facilitated meetings between a delegation of King Valley winemakers and Mr Farrell and Agricultural Minister Murray Watt in Parliament House late last year, and has discussed the negotiations with Mr Farrell throughout 2023.
“Prosecco is vital to the economy in the King Valley and a robust wine industry is vital to Indi,” Dr Haines said.
“I am pleased Minister Farrell has listened to the concerns of farmers, winemakers, grape growers and the broader agricultural industry on this deal.
“What was on the table was not a good deal for regional Australia, and we have seen little progress and compromise by the European Union, so this was the right call for us.”
Speaking following the briefing of industry representatives in Osaka, NFF president David Jochinke said the Minister had made the right call for Australia.
"We thank Minister Farrell and Agriculture Minister Murray Watt for standing by Australian farmers and walking away from an unacceptable offer,” Mr Jochinke said.
“It’s disappointing the Europeans weren’t willing to put something commercially meaningful on the table.
“What was on offer would have hardwired protectionism into our trading relationship with Europe for another generation."
