The Corporation’s funding for R&D investment comes from levies on the annual grape harvest and wine yield ($13.526m in 2005-2006), with the Australian Government providing matching funds ($11.969m in 2005-06).
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Our aim
The PIERD Act best explains the overriding objective of the GWRDC:

The four outputs groups of the Corporation’s investment in R&D activities are:
Extension and training packages;
New production technologies;
Assessment of social, economic, regulatory and market factors; and
An R&D investment portfolio providing the best possible return on investment.


These outputs are achieved through five major programs, namely;

In 2004 the Australian wine industry supported a change in the Wine Grapes levy which will see a rise in the research amount of the levy from $3 to $5 paid by winemakers for each tonne of grapes crushed, applying from the 2005 vintage. Grapegrower contributions remain at $2/tonne delivered. These industry contributions are matched by the Australian Government.

This is a strong endorsement of the expectations that the industry has for R&D and innovation being key drivers for industry success.

The Corporation has been engaged closely with industry as part of a CRC planning process and also with the development of a Strategic Directions Group that has been initiated by the Winemaker’s Federation of Australia. In both cases the focus has been on strategic planning and with the clear identification of the pivotal need for understanding consumers. While we know that “over delivery” on quality and value is a hallmark of Australian wines, there is no room for complacency or assumption about consumer drivers and responses in the global or domestic wine market.

The Wine Grape Growers of Australia (WGGA) is addressing change and representation for Australian growers. This group provides clear signals about concerns and needs of growers and is a valuable indicator to the GWRDC of the types of challenges and opportunities that are confronting grape growers. ABARE projects for the GWRDC and industry are providing some basis for comparison and understanding of the variation in business structures in different regions and how this might impact on the ability of individual growers to manage for changed circumstances. The Regional Innovation and Technology Adoption Program (RITA) is evolving to provide increased opportunities for regional groups to address issues of importance to them, while a further element of regional investment is encouraging linkages between these groups and research providers. At all times this regional work requires a strong communications and extension focus to ensure that the advantages of the project outcomes can be shared.

The planned investments continue to respond to the National Research Priorities and the Minister for Agriculture, Fisheries and Forestry’s priorities for rural research and development.

Design and planning that was part of the development of a CRC for Wine bid was successful in developing a strong value chain approach to R&D opportunities and needs. This planning involved close engagement with all sectors of industry and especially the larger wine companies who saw the opportunity for shared benefits through cooperation. The identification of the central position of the consumer introduced a number of scenarios for how new and existing markets might be addressed. Elements of this market understanding must then link back to the grape grower and forward to more commercial strategies. This dialogue with industry was extremely healthy as in identified areas of legitimate R&D activity in the undertaking of basic consumer behaviour mechanisms.

The management of the Corporation’s portfolio is aimed at ensuring that the R&D value chain, from discovery through to industry adoption, is balanced and that relationships are managed to ensure that all co-investors continue to derive value from their commitment to the grape and wine industry. Research providers are crucial to this and in all cases continue to work closely and cooperatively with the GWRDC. The development of a major soil and water initiative by the GWRDC recognised the need to collaborate and gain from the efficiencies that can arise through shared resources.
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  Meeting industry and public good requirements
  Strategy 2025 – The Australian Wine Industry (1996) articulates the Australian wine industry's direction, ambitions and requirements for the next 30 years. It is estimated that R&D will contribute around half the competitive gain required for the strategy to achieve its 2025 vision.
  
  While the GWRDC's program priorities are derived directly from industry needs (as presented in the GWRDC Five Year R&D Plan 2002-2007) they are implemented with the expectation that both industry and public outcomes will be achieved.
  
  These community and consumer benefits are captured by the GWRDC's portfolio, which directly addresses regional development, increased productivity and value-adding, and promotion of the positive link between moderate wine consumption and health.
  
  Investments made by the GWRDC also address the Australian Government's National Research Priorities and the Rural Research and Development Priorities. The National Research Priorities are:
  • An environmentally sustainable Australia
  • Promoting and maintaining good health
  • Frontier technologies for building and transforming Australian industries
  • Safeguarding Australia
  
  The priorities for Rural R&D Corporations are:
  • Sustainable Natural Resource Management
  • Improving competitiveness through a whole of industry approach
  • Maintaining and improving confidence in the integrity if Australian Agricultural, Food, Fish and Forestry products
  • Improving trade and market access
  • Using frontier technologies
  • Protecting Australia from invasive diseases and pests
  • Creating an innovative culture
  • Ecologically sustainable development and environmental performance


The GWRDC portfolio delivers additional public good outcomes by substantially contributing to:
• Recognition of the positive link between moderate wine consumption and health;
• Regional employment;
• Growth in government consolidated revenue derived from a profitable industry; and
• Development of an ecologically sustainable production system and its products




Interaction with industry
To ensure R&D programs remain highly relevant to industry, the GWRDC engages in extensive and regular consultation over planning issues with a range of industry representative bodies.

This strategic review and planning activity also includes the GWRDC's involvement with:
• National Phylloxera Management Strategy
• Plant Health Management Strategy Development
• The National Industry Statistics Collection and Review
• Import Risk Analyses (tablegrapes)
• National Vine Health Steering Committee
• Industry/Provider 'Co-Management' Groups such as 'Riverlink'
• Other interactive efforts include presentations and discussions with a range of service providers, as well as regional extension initiatives.
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Interaction with government
The GWRDC must meet the statutory requirements of both the PIERD Act and the Commonwealth Authorities and Companies Act 1997 (CAC Act).

The GWRDC ensures that the total investment in research and development provides broad social, environmental and economic benefits to regional communities in recognition of the Australian Government's matching funds contribution.

The Australian Government representative on the GWRDC Board helps ensure that GWRDC operations are consistent with the statutory, accountability and governance requirements of the Australian Government.

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